Profit Higher
p. 47 · Read in the full issue
Morris, Hedstrom's Annual Report
REFLECTING better prices for copra and other Islands produce, a profit of £53,511 was earned by Morris, Hedstrom, Ltd. (Islands traders and shipowners of Suva, Fiji, with branches in Samoa and Tonga) for the year ended March 31, 1936, compared with £48,514 in 1935, and £34,272 in 1934.
Dividends at the rate of 6 per cent, per annum on preference and 5 per cent, per annum on ordinary shares absorbed £39,- 172. The profit was struck after charging £20.921 for depreciation, which, to a large extent, was used in writing down the value of assets in copra districts.
“The company’s position continues sound, and the amount of cash on hand and in the banks is in excess of the total liabilities to outside creditors,” said Sir Maynard Hedstrom (chairman of direc tors) in presenting the balance sheet to shareholders at Suva on May 22. “The prospects for the current year are satis factory—good crops of sugar and copra are assured, and substantial amounts are being expended in the development of the goldmining areas.
“During the year we erected a new store at Tavua (in the neighbourhood of the goldfield) and constructed new motor re pair shops at Suva and Levuka —both of which were fitted with modern equipment,” added Sir Maynard.
Morris, Hedstrom Limited (which was founded in 1868 and Incorporated in 1910) has an authorised capital of £1,000,000, paid up to £739,613. Directors are Sir Maynard Hedstrom, Kt., R. Crompton, C.8.E., K.C., Hon. Sir Henry Marks, Kt., C.8.E., P. A.
Morris, H. E. Snell, B. H. Marks, and R. A.
Crompton.
The Company’s accounts are kept in Fijian currency, the major portion of the assets being in Fiji, though there are con siderable Investments in Tonga and Samoa.
The Fiji £ is lower in value than the Eng lish £. but higher than the Australian, N.
Zealand, Samoan and Tongan. In the fol lowing table, which shows the Co.’s finances during the last three years, the necessary currency adjustments have been made:
Rev. J. M. Oreve, Marist missionary of Suva, Fiji, arrived in Sydney on furlough by the Mariposa on June 15.
1934. 1935. 1936. £ £ £ Gross profit . . . . 106,953 130,223 149,606 Net profit . 34,272 48,514 53,511 Pref. div 6 6 6 Amount . 13,152 13,152 13,152 Ordinary div. . . . 4 5 5 Amount 20,816 26,020 26,020 Liabilities Capital—Pref. . 219,206 219,206 219,206
Ordinary
. 520,407 520,407 520,407 Reserve . 80,000 80,000 80,000 Insurance res. . . . 38,573 41,906 45,080 P. and L. . . . 51,441 62,314 74,350 Creditors . 31,510 25,856 33,011 Assets Plantations . . . . 57.455 54,194 52,754 Property 301,820 294.056 Floating stock . . . 17,275 19,950 17,250 Plant 6,326 ,8,535 Merchandise . . . . . 187,939 174,833 193,450 Produce 33/533 52,398 55,117 Branches . 70,300 63,359 57,233 Debtors 129,926 151,046 Prepayments . . . 2,698 2,444 2,137 Cash 7,000 2,759 3,954 Bank 15,844 18,070 32,165 Shares, etc 109.011 104,359 Govt. Loan . . . . 14,899 14,899 —