COMPANY AFFAIRS

Wanganui Chronicle, Volume 73, Issue 439, 3 December 1930, Page 9

COMPANY AFFAIRS

BANK OF NEW SOUTH WALES HEAVY FALL LX BUOI'ITS The report of the Bank of New , South Wales fur the year ended Sep lumber 30, which was presented at the , annual meeting in Sydney last Friday, states that the net profits after payment of taxation, amounting to £366,621 against £350.867 last year) and other provisions, were £734,699 3s sd. To this is added the undivided balance at Scplember 30, 1929, £163,478 10s 6d, making £'■'98.177 13s lid.

Interim dividends for three quarters at the rate of 10 per cent- absorbed

£562,500. The directors recommend payment of dividend for the quarter ended September 30 at the rate of 9 per cent, per annum. This will amount to £168,750, leaving £166,927 13s lid to be carried forward. Following is a comparison of the bank’s results and appropriations for the last three years: — 1928. 1929. 1930. £. £. £. Brought forw’d 170,616 168.654 163.479 Net profits .. .. 1.184,943 994,825 734,699 £1.355,559 1,1(53.479 898,178 To reserve .. .. 250,000 250,000 Dividend p.c. .. 10 10 9% Amount .. ■ • 749,405 750,000 731,250 Bonus 2'/j p.c. .. 187,500 , Carried forw’d .. 168,654 1163,479 166,928

Following amalgamation with the Western Australian Bank, the 1927 profits established a new record of £1,226.247- There was a small decline. £41,304, in 1928, but last year the profits were lower by £190,118, and the directors decided to withhold the bonus of 2A per cent, that had been paid annually for four years. The latest report discloses a further fall in profits by £260,126, bringing the amount to the lowest figure since 1922, when the profits were £698.125.

The capital of the bank is £7,500,001 and the reserve fund remains at £6,150,000. The balance-sheet shows deposits of £66,238,223, an increase during the year of £182,171. Advances, loans, and bills discounted total £60,400.511, an increase of £972,551. The proportion of loans to deposits is 91.19 per cent-, as against 89.96 per cent, last year, and 79.60 per cent, in 1928. With the expansion of advances, there has been a further contraction of liquid assets by £2,228.710 to £24,818,896. The reduction has been in public and municipal securities, which have declined by £3.367.790 to £4,959,414, and in bills and remittances, which at £3,399.695 are £1.440.194 lower. Money at short call in London has declined by £270.000 to £1,650,000, but there are £2,550,000 of short-dated Treasury bills, an item that was absent from last year’s balance-sheet.

Liabilities, exclusive of shareholders’ funds, amount to £72,833.729, which is £1,090,859 less than a year ago.

NATIONAL TOBACCO CO., LTD. DIVIDEND OF 15 PER (’ENT. The directors of the National Tobacco Company, Ltd., Port Ahuriri, reviewing the operations for the year ended October 31, 1930, remarked that shareholders have reason to be well satisfied with the results. “Although saturation point has practically been reached, our sales have again increased, nt the expense of the, imported article of course, and our brands have become more popular than over. Our profits may seem large, but. they arc the result of a huge turnover. In reality, wo are working on a very narrow margin, so small that, if we were for instance to lower our prices to the trade only by ILI per 2oz tin, our profit would disappear altogether and there would be nothing left, even to make adequate provision for depreciationThe. industry is taxed to its utmost limit and can bear no more. Any additional burden must spell disaster.’’ Sharp capital at £124,341 remains the same as for the previous year. Some additions have again been made to the factory buildings at a cost of £2500. and the property hold by the company, including plant and machinery, now represents a value of £45.505 12s Bd. Cash in hand and at bankers amounts to £65.149 10s 2d, including £40,000 fixed deposits earning interest at the rate of 41 per cent- per annumAfter deducting all charges and allowing the sum of £17,000 for incometax, the profit and loss account shows a balance of £44.570 12s 4d, which represents the net profit for the year. To this must be added the balance of £4525 13s 2d brought, forward from last year, making a total of £49,096 5s

Out of this the directors recommend the distribution of a dividend of 15 per cent, on the ordinary shares, and <8 per cent, on the preference shares, both free of income-tax; to transfer to reserve the sum of £25.000. so that this amount will then stand at £90,000 and to carry over into next year the balance of £6227 5s 6d. BREWERY PROFITS TOOTH'S DIVIDEND LOWER Although the net profits of Tooth and Co., Ltd., brewers, of Sydney, for the 12 months ended September 30. amounted to £686,391, compared with £634,054 for 1928-29, a larger capital was employed. The amount paid up is £5,620.598, or the same ns at September 30, 1929, but in the year ended at that date the increased capital was in use for only a small portion. This explains why the dividend of Hi per cent- absorbs more, than that of the preceding term, when 12$ per cent, was paid, lhe distributions being £632,317 and £539.860 respectively. The. company has a reserve fund of £750,000. depreciation reserve is £50,000. and creditors are owed £553,695, against £613,369 n year ago. Among assets, breweries, freehold, plant, etc., amount to £4,727.376, against. £4,590,42-1. Government stock and deposits £560,6.86. against £409,007, cash £72,290, against £135/198. stock on hand £456.142, against £577.290 while sundry debtors owe £1,607,26’2 against £1.734.165-