Sound Trading

———♦——— Burns, Philp (S.S.) Company Makes Healthy Profit

IN view of the acute depression which existed in 1930, shareholders in Messrs.

Burns Philp (South Seas) Co. Ltd. were more than delighted in March, when they received the balance sheet for the year ended December 31, to discover that the company had made a net profit of £62,660.

This compared favourably with £62,996 made in 1929, and £65,140 in 1928. It meant that the company comfortably maintained its ordinary dividend of 7½ per cent., and was able to carry £5,000 on to reserves, bringing the reserve fund total to the healthy figure of £85,000.

The report states that the value of all islands produce remained extremely low during 1930, and merchandise sales and shipping revenues declined owing to the curtailment of spending power in the Islands.

The following shows the balance sheet figures: ... Year ended December 31 ... 1928 ... 1929 ... 1930 ... £ ... £ ... £ Gross profit ... 181,583 . 192,137 . 185,059 Net profit ... 65,140 ... 62,996 .. 62,662 Dividend, p.c. ... 7½ ... 7½ ... 7½ Amount of div. ... 56,250 ... 56,250 ... 56,250 To reserve ... 10,000 ... 10,000 .. 10,000 Carried forward ... 5,425 ... 2,171 ... 1,410

... Liabilities—

Capital ... 750,000 . 750.000 . 750,000 Reserve fund ... 60,000 .. 70,000 ... 80,000 Creditors ... 67,286 .. 85,091 ... 67,104

... Assets—

Cash ... 41,615 .. 60,048 ... 47,055 Properties and ... shipping ... 332,955 . 435,890 . 420,557 Produce in transit .. 229,639 . 287,612 . 290,850 Merchandise ... 168,510 ... * ... * Debtors ... 176,241 . 189,962 . 201,301

* Included in “produce in transit.”

This is really a most creditable performance, and the directors of the company are to be heartily congratulated upon their excellent figures.

Trade in the Pacific Islands during 1930 was depressed to a far greater extent than is indicated by the quiet phrases of the directors’ annual report; and, if the disclosed profit had been half of that of 1929, there could have been no real complaint. It is evident that the directors had long vision, and made preparation for this slump a long time ago.

The directors are Messrs. James Burns, Lewis Armstrong, Lord Inchcape, Theodore C. Amsden, Robert J. Nosworthy and Joseph Mitchell. ... ===