Burns, Philp
p. 66 · Read in the full issue
Annual Profit Maintained;
Strong Financial Reserves
NET profit of Burns, Philp and Co., Ltd., the well-known Islands mer chant and shipping organisation, for the year ended March 31, 1935, was £211,006, an increase of £7749. Dividend is main tained at 10 per cent., and requires £150,000. A sum of £25,000 is to be transferred to the reserve fund, making it £1,000,000, and £25,000 to special depreciation from the company’s copra plantations. With £28,083 brought for ward, there is carried forward £39,089.
Gross profits were £792,841, against £735,586 of a year previously. Adminis tration expenses increased by £32,053, and the amount allowed for depreciation, bad debts, and losses, is £17,543 higher.
The following shows balance sheet movements in recent years:
section of the company’s business resulted in a substantial increase in the volume of sales, and the earnings of this depart ment improved. Trading in Papua and the Mandated Territory continued during most of the year to be affected seriously by the exceedingly low market for copra.
Towards the close of the year the market appreciably improved, rendering the out look considerably brighter. The directors consider that further improvement in the market is needed to make the industry reasonably profitable to the planters. The company’s shipping interests were satis factorily maintained.
Year ended March 31, 1933. £ 1934. £ 1935 £ Net profits 208,531 203,257 211,006 Div., 10 p.c 150,000 150,000 150,000 To reserve 25,000 25,000 25,000 Special depreciation, copra plantations 25,000 25,000 25,000 To staff bonus fund 20,000 — — Carried forward 24,826 28,083 39,089 Expenses, etc 429,579 427,786 459,859 Depreciation, etc. 74.400 104,542 121,995 Gross profits 712,511 735,586 729,841
Liabilities—
Capital paid up 1,500,000 1,500,000 1,500,000 Reserve fund 925,000 950,000 975,000 Insurance reserve, etc. 496,688 516,418 517,775 Cash credits 40,828 36,167 144,626 Bills and foreign drafts 275 400 180 Open liabilities 1,757,466 1,474,924 1,528,105
Assets—
Merchandise, copra, advances 744,950 707,867 715,427 Cash in hand 143,757 123,046 164,852 Property, shipping, and shares 2,993,444 3,060,818 3,215,210 Sundry debtors ... 825,932 739,261 783,285 The balance-sheet shows expansion.
Liabilities to the public have increased by £215,420, and all assets are higher.
Cash items have increased by £41,806, merchandise by £7560, and debtors owe an additional £49,024. Property is £ 154.392 higher.
Further expansion in the merchandise