AUSTRALIAN GLASS.

Star (Christchurch), Volume LXVI, Issue 20649, 25 June 1935, Page 7

AUSTRALIAN GLASS.

Huge Increase in Gross Earnings. An increase of 26 per cent in gross earnings to almost £IOO.OOO above the peak of 1929. is shown by the Australian Glass Manufacturing Co. for the year ended March 31. The net profit of £175.520 is £50,920 higher than that of 1933-34, and is sufficient to meet the annual 9 per cent cumulative preference dividend charge 11 times. After paying preference dividend, remaining j profits are equal to 17 per cent on j ordinary capital. Compared with 9 j per cent in each of the two preceding ! years, ordinary shareholders are receiving 13 per cent, requiring £120,960. which leaves £38,810 to be added to undivided profits. Provisions made for depreciation are not disclosed, but, as the following table shows, the composite item for expenses, taxation, and depreciation has increased in a manner which suggests that depreciation is not being neglected: j 1933. 1934. 1935. , ‘GROSS £ £ £ EARNINGS 370,800 417,800 530,000 , /Expenses . 248.400 293.200 354,500 j PROFIT .... 122,400 124,600 175.520 I DIVIDENDS. 99.490 99.490 136,710 Pre., p.c. . . 9 9 9 Ord., p.c. . 9 9 13 * Including interest and rents received. +Comprising office and selling expenses, taxes, depreciation, etc. Notwithstanding substantial additions, freeholds and plant appear in the account at about £164.000 less than in 1924. The value placed on the assets and goodwill of the business by investors is disclosed in the market price of 69s 3d for the £1 shares, which have a tangible backing of only 29s lOd on the basis of book values. Assuming that other assets are accurately valued in the balance-sheet. 92s is being paid for each £1 of freeholds and plant. The manufacture of sheet cut crystal, lampshades, and the like is conducted through subsidiaries, the parent company being engaged solely in making bottles. More than £360.000 is said to have been invested in the sheet .glass facorrv. The artivity of the parent company may be gauged from extensive additions being made to the engineering shop attached to the Spotswood factory. Bottle works are established in each State. The following balance-sheet comparison shows strong finances:— •1933. 1934. 1935. ASSETS £ £ £ ‘lnvestm'ts 608,800 559,000 760,500 Debtors ... 256.400 317,200 183,300 Stocks .... 420,700 466,000 459.300 Freeh olds and plant. 426,800 426,600 492,600 Total ... 1,742,700 1,768,800 1,925,700 FUNDS USED + Liabilities 245,600 246,600 364,700 Fref. capital, 9 p.c. ... 175,000 175,000 175.000 Ord. capital 930,500 930,500 930,500 JUndivid e d profits, etc. 391,600 416,700 455,500 Total .. 1,742,700 1,768,800 1,925,700 * Including loans at short call and interests in subsidiaries. + Including dividends recommended (£82,300 ih 1935) and provision for taxation. J After deducting goodwill, £114,500.