COLONIAL SUGAR COMPANY

Wanganui Chronicle, Volume LXXXI, Issue 19008, 8 May 1924, Page 5

COLONIAL SUGAR COMPANY

SITUATION REVIEWED. Received May 7, 9.50 p.m. SYDNEY, May 7. Addressing a meeting of shareholders, Mr Knox, chairman of directors of the Colonial Sugar Company, said large production of sugar was expected during the coming season. The price to be paid to manufacturers had not yet been fixed. As the result of alterations to the plant, the company could now provide easily for the present consumption in Australia and New Zealand. The 1923 crop had turned out better than was expected, and 16,000 tons were exported during the past nine months. This season export would be larger. Referring to the Auckland refinery, he said there was no chance of maintaining the business if there were a reversion to the former freetrade conditions. These latter obtained up till about four years ago, when sugar was first handled by the Government, but when it relinquished control last year a small protective duty on competing white sugar was imposed, and this enabled the company to carry on. The duty expired in September, but the company hoped it would be reimposed. Mr Knox said it was recognised that refining on a freetrade basis was impracticable without incurring serious loss, and that it was necessary for some protection to be granted to avert closing the industry. A SUCCESSFUL YEAR. Received May 8, 1.5 a.m. SYDNEY, May 7. Mr Knox submitted accounts covering the year to March 31. the first to be presented since the revision of the assets of the Fiji Company to cne present business. The net profit for the period amounted to £672,639. Of this £392,410 was contributed by the Australian mills and refineries and £10,090 by investment, subject to Federal income tax, while earnings in New Zealand and Fiji from, other investments not subject to Federal tax amounted to £172,139. The balance brought into the accounts was £326,716, making a total of £1,000,355 available. An interim dividend at the rate of 20s per share to September 30 absorbed £203,125, and it was proposed to pay a final dividend of 20s per share, taking £243,750. A sum of £250,000 was transferred to reserve, and a balance of £303,480 carried forward. In March last it was decided ot increase the authorised capital from four millions to seven millions by the creation of 150,000 new shares of £2O each, and also to increase the paid-up capital from £3,250,000 to £4,875,000 oy the capitalisation of £1,625,000 received on account of the liquidation of the Fiji Company. The latter sum was distributed in the proportion of one £2O fully paid-up share for every two shares held. For the half-year ended March the Australian Company showed a net profit of £251,395.