B.P. (South Seas) Co.

Maintains Satisfactory Profit.

THE Burns, Philp (South Seas) Co., Ltd. has published its accounts for the year ended January 31, and has disclosed a net profit of £58,105/4/9.

This is to be disposed of as follows: Dividend; 1/3 per share on 750,000 shares £46 875 To reserves 10,000 Carry forward 1,230 This Company is, next to the parent Company, the most important company in the Burns, Philp group. It owns and operates all the B.P. stores and other activities in the Pacific Islands outside of New Guinea and Papua. Not one of the territories in which it is interested has escaped the effects of the slump seen mostly in vastly reduced prices for all islands’ produce, and a cor responding reduction in the purchasing power of the Islands’ communities.

Yet, somehow, the Company has been able to show a profit for 1931 that compares not unfavourably with those of normal years. The achievement is the result of strict economies, direc torial foresight and good management —things for which most of the Islands residents have cause to be thankful, they would have been in a deplorable condition to-day if they had not been able to depend on the financial strength of this and other similarly controlled companies to help them through the bad times.

The B.P. (South Seas) Co. is regis tered in Suva—a small matter in nor mal years but a very important point in these days of lunatic Australian ad ministrations, because, one way and another, it should allow the BP in terests to escape some ferocious taxa tion. It means that nearly all the Company’s profit is actually made and controlled outside of Australia and therefore, is not subject to the fright ful imposts that are now placed on Sydney 168 controlled and operated in The subscribed capital of the Com pany is £750,000 (in £1 shares), so that 1/3 per share gives a return of over six per cent. The Company’s proper ties include shipping, land, wharves and investments, and are valued at £481,000. Merchandise and stock are given at £212,981, and sundry debtors at £204,668. The reserve fund, includ the £10,000 allotted from the 1931 profits, now stands at £95,000. The directors are Messrs. James Burns,

Lewis Armstrong, R. J. Nosworthy, Joseph Mitchell (general manager) and Lord Inchcape.

The Company opened branches dur ing 1931, at Sigatoka (Fiji) and Niue.

The Sydney Bulletin, in its review of the Company’s balance sheet, is highly complimentary to both the Directors and the management. The position of the Company is summed up in the fol lowing table:

The Bulletin also makes this inter esting comment: Much of the fall in the price of copra during the last few years has been due to competition from whale oil; and the outlook in this respect has improved, though present prices lack strength.

Still, the co. is unaffected by the dis turbed conditions in Australia, and the market prices the pound shares at 31s. as against 275. a year ago. At 31s. the return is 4.1 p.c. on a p.c. div. basis, or 5.1 p.c. should the distribution rise to 8 p.c. The book value of the back ing amounts to 225. 7d. in net tangibles

Net To Reserves Dec , Prolit.

Dividends.

To Reserves & £. & £ 1920 102,840 10 p.c. = 75,000 27,840 27,840 1921 57,549 74 ,. ,, 50,250 1,299 29,145 1922 4.192 Nil 4,192 33,337 1923 37,791 5 p.c. = 37.500 291 33,028 1924 51,272 0} ,. 40.875 4,397 38.025 1925 00,800 6% .. 50,000 10,806 48,831 1920 50,725 6% .. ,. 50,000 0,725 55,650 1927 04,104 7.1 .. .. 53,125 10,979 66,535 1928 65.141 74 .. 56,250 8,891 75,420 1929 02,995 .. .. 56,250 6,745 82,171 1930 Jan.. 00.489 74 .. .. 56,250 4.239 86,410 1932 50.095 01 .. ., 46,875 9,820 90,230