Morris Hedstrom
p. 66 · Read in the full issue
Company in Strong Position
IyTESSRS. Morris Hedstrom Ltd., with headquarters at Suva, Fiji, reported a net profit of £70,384 for the year ended March 31, compared with £53,511 for the previous year. Gross profit is £43,893 higher at £193,499. Ordinary dividend is raised to 5| per cent, from J 5 per cent. (21 interim and 34 final), and requires £29,923. Preference dividend of 6 per cent, absorbs £13,152. An amount of £20,000 is transferred to general reserve, making that account £lOO,OOO. With £54,764 brought forward, there is carried forward £62,072.
The following analysis and comparison show the remarkable healthiness of this company:—
Higher values of merchandise and of produce held denote not only heavier stocks for better trade, but higher prices.
Debtors are substantiallv lower, showing the improved position of the company’s •customers. The reduction in the item, “shares, debentures, and mortgages,” of £29,077, if it relates principally to the two latter sub-items, has the same sig nificance as the reduction in trade debtors.
Year Ended March 31.
1935 1936 1937 £ £ £ Cross profit 130,223 149.606 193,499 Net profit 45.141 53,511 70,384 Div., pref., 6 p.c 13,152 13,152 13,152 Div., ord., p.c 5 5 54 Div.. ord., amount 26,020 26,020 29,923 To Reserve — — 20,000 Forward 40,425 54,764 62,072
Liabilities—
Capital: Preference 219,206 219.206 219,206 Ordinary 520,407 520.407 520,407 General reserve 80,000 80,000 80.000 Insurance fund res 41,906 45.080 48,530 Depositors 1,965 5,100 10,010 Creditors 14.955 13,882 22,700 Charges accrued due 2,742 3,194 3,023 Suspense (income tax, etc.) 6,194 10,833 15,373
Assets—
Plantations 54,194 52,753 49,033 Land and buildings 301,820 294,055 290,404 Floating stock 19,950 17,250 14,484 Plant and fittings 6,326 8,534 10.674 Merchandise 174,833 193,450 238.655 Produce 52,398 55,116 100,279 Branches and due by subsidiary companies 63,359 57,232 75,572 Debtors ... 129,926 151,045 132,468 Prepaid items 2,444 2,136 3,088 Cash 20,829 36,118 34,872 Shares, debs, and mortg 123.909 104,359 75.282 Total assets 949,988 972,054 1 ,024,814