PROFIT OF £444,782

Taranaki Daily News, 29 November 1934, Page 5

PROFIT OF £444,782

COLONIAL SUGAR COMPANY. REPLY TO HOSTILE CRITICISM. By Telegraph—Press Assn.—Copyright. Rec. 11.50 p.m. Sydney, Nov. 28A nett profit of £444,782 for the half year ended September 30 as compared with £495,389 and £468,112 in the two preceding periods was shown in the report of the Colonial Sugar Refining Company which was adopted at the half yearly meeting of shareholders this afternoon. A dividend of 10 per cent, per annum and a bonus of 2| per cent per annum require £365,625. The amount transferred to the reserve is £92,000 while £387,704 is carried forward.

Mr. E. R. Knox, chairman of directors, said the output of sugar from Queensland in the present season would not reach original expectations, mainly because of excessive rain. The forecast for the company’s mills next year was 110,000 tons, which was about the average for the past five years. Tire output in New South Wales was better than anticipated. Fiji also exceeded expectations. Before the half-yearly meeting a special meeting of shareholders confirmed the resolution of a special general meeting on October 24 for an increase in the capital of the company from £7,000,000 to £14,000,000 by the creation of 350,000 new shares of £2O each.

Mr. Knox took the opportunity of clearing up misconceptions surrounding the proposal and the company’s profits, at the same time answering hostils criticism in Parliament and a section of the Press. He said even if the company gave all its services as refiners at cost or without profit the price of sugar, 4d per lb in Australia, could not be reduced by more than l-14d or 5d per 701 b bag.