Messrs. Carpenter Report
p. 62 · Read in the full issue
an Increased Profit
ACCOUNTS for the year have just been pub lished by Messrs. W. R. Carpenter and Co., Ltd., who control a large section of the trade in New Guinea and the Solomons. The following
summary is taken from the well-informed finan cial columns of the Sydney Bulletin: —
Copra touched £8 a ton in London during the year, but gross earnings (£49,376) formed £4022; the net result was £2286 better at 12 p.c. on capital, compared with 11.3, 11.1, 12.5, 14.6, and 20 p.c. back to 1929. The improvement seems mainly due to merchandising and aerial-service activities on the New Guinea goldfields. The first two ’planes were bought towards the end of the previous term; a twin-engined machine was added to the fleet last year, and a three-year contract for carrying mails and freight to the goldfields has been secured from the Government.
Most interesting recent development was the purchase of two 9000-ton Diesel-driven vessels to establish a direct line with British markets. The first ship is due in Australia in October and five trips to London a year are scheduled. To finance the acquisition 115,000 unallotted shares were offered to shareholders and snapped up.
Founded as an island trading concern by the Carpenters in 1914, with its main interests in New Guinea and the Solomons, the 00. continues to expand quietly and solidly. The management has never been talkative or over-generous with divs., but the 8 p.c. these days, more than double the yield of Consols, speaks for itself. In the good years more was visibly put by than was distributed, and in 1932 £ 86,000 of what had never been acknow ledged as profit was brought to light. This was “over and above ample provision for contingencies."
Of the visible reserves (£240,073) in the table, £28,075 is earmarked for “replacements and re newals.’’ This offsets the entire book value of the co.’s coastal fleet: —
To what extent the new ships figure in tho latest balance sheet is not clear; branch balances; (£418,867, up £67,735) is an item more elastic than specific, and movements therein are not very significant to outsiders. Investments. (£140,618, up £12,920) include the co. s interest in its Solomon Islands subsidiary, whose £112,000 of ord. capital the parent largely controls. The pup handed out 4 p.c.—2 p.c. less than in the previous year—refleeting more truly the position in the copra trade.
Disclosed liabilities amount to only £18,073 though there is probably some debt amongst branch balances. Visible backing for the shares is 34/- per £1 of paid capital. The fully paids an at 40/9 on ’Change; return at that price is 3.9 p.a.
Pref.
To Re- Re- June Profit 8 p.c. Ordinaries serves serves £ £ £ £ £ 1926 28,692 8 p.c.— 12,581 16,111 37,268 1927 35,231 8 „ „ 16,499 18,732 56,000 Investment reserve (£4,000) disappears.. 52,000 1928 34,911 8 p.c.— 18,407 16,584 68,584 1929 43,534 8 „ „ 21,667 21,867 90,451 Endowment account, £1500 88,951 1930 43,680 8 p.c.= 23,866 19,814 108,765 1931 37,713 8 „ 24,133 13,580 122,345 Inner reserves disclosed, £86,000 208,345 1932 33,631 8 p.c.— 24,133 9,498 217,843 1933 34,105 8 „ ,, 24,133 9,972 227,815 1934 36,391 8 „ „ 24,133 12,258 240,073
co.'s coastal fleet:— 1929 1931 1933 1934 £ £ £ £ Paid capital.. 291,667 301,667 301,667 339,789 1 Liabilities 21,904 7,333 15,501 18,071 Shipping prop. 23,128 16,075 28,075 28,1551 Furniture and plant .. 500 750 477 505: Investments, etc. 115,260 118,114 127,698 140,6185 Stocks 8,047 1,238 32 15 Branch balances etc. ’266.395 261,774 359,700 440,707 Cash 3,560 45,460 41,068