Burns. Philp
p. 77 · Read in the full issue
Profit Slightly Higher Last Year
BURNS, Philp and Company Ltd., at the end of April, reported a net profit of £226,067 for the year ended March 31, compared with £216,979 the previous year, and £211,006 for 1934-35.
Details are as follow:
The directors state that sales of mer chandise increased to a new high level, and that shipping and trading operations produced satisfactory results. Better prices were obtained for copra, and sub sidiary plantation companies improved their plantations and acquired additional planted areas. Orders have been placed for a modern passenger and cargo motor vessel for the Australia-Papua-New Guinea mail service, and for two small motor vessels for inter-island trade.
The new issue, at par, of 500,000 £1 shares has already been announced. The balance-sheet is presented in more de tailed form, particularly the items for merly grouped under the heading “pro perty, shipping property, and invest ments.”
New Issue Of Shares
There has been much speculation con cerning the purpose of the new issue of £500,000 £1 shares. The company is so solidly placed, financially, that some said the new £500,000 could not be used, except in the development of some entirely new enterprise. Concensus of opinion is that part of it will be used in connection with the “Big Firm’s” sub sidiary, Penny’s Limited, the Queensland equivalent (and rival) of Woolworths Ltd., which has grown into a huge con cern, and which obviously is capable of much extension and development.
At the annual meeting on May 18, the chairman (Mr. Nosworthy), in referring to the decision to increase the company’s paid-up capital from £1,500,000 to £2,000. 000, stated that the calls for this addi tional capital had been spread over a
period suitable for its utilisation in con nection with the building of the new vessels, to meet the growing needs of properties, *premises, and merchandising, and generally to meet the requirements of the gradual expansion of business over a very large field.
“Our operations are of such magnitude that our usual resources must be hus banded to care for increasing regular business, and provision should be made for ample reserves in order to negotiate quickly any unexpected business of a remunerative or advantageous nature,” he said.
“With the increased capital, the direc tors expect to maintain the usual 10 per cent dividend.
“As there have been certain rumours that the company intends floating off part of its business as a separate com pany, I may say that there is no idea at the present of doing any such thing.”
Old Trading Co. Purchased
Messrs. Burns, Philp and Co., in rec ent weeks, absorbed the New Britain Corporation Ltd., an old established Islands trading concern. Its authorised capital is £25,000, in £1 shares, of which 19,970 have been issued.
The capital was represented by net tangible assets of £19,012, mostly estate and buildings. Messrs. Burns. Philp pur chased the property for 10 - per share.
Year ended March 31 1935 1936 1937 £ £ £ profits Div., 10 p.c 211.006 216,979 226,067 150,000 150,000 150,000 To reserve 25,000 50.000 75,000 Special depreciation, 25,000 Copra plantation ... 25,000 ■ Carried forward ... 39,089 31,068 32,135 Expenses, etc 459.839 508,518 600,448 Depreciation, etc. 121,995 134,621 139,462 Gross profits 792.841 860,118 965,977
Liabilities —
1,500,000 1,500.000 Capital paid up ... 1 ,500,000 Reserve fund 975.000 1,000,000 1,050,000 Insurance reserve. 553.351 61,823 etc — Cash credits 517,775 144,626 535.268 58,256 Bills and foreign drafts — Open liabilities 1 180 .528,105 821 1,568,263 383 1.654.842
Assets -
Merchandise, copra, advances Cash in hand 715.427 164,852 850,360 113,508 1,060,015 98,816 Property, shipping, «nd shares 3,215,210 3,065,818 fl, 326.770 Sundry debtors ... 783.285 813,991 823,715 Shares in other com- 960,437 732,781 panies, Govt. sec. — Shares in subsidiaries f Real property and shipping property.