Guinea Airways

Increased Business at Lower Rates

GIUINEA AIRWAYS LTD., in its annual f statement of accounts, issued during the month, stated that, although business in New Guinea grew during the year ended February 28. the net profit fell from £13.886 in 1936-7 to £10.895. In 1935-6 the company made a profit of £25,876 from its operations in New Guinea.

It is explained that the cost (£19.252) of establishing the two main air routes in Australia—Darwin-Adelaide and Ade laide-Sydney—is regarded as a capital expense to be written off over a series of years. The first instalment of this is 20 per cent., equal to £5.332. and it has been written-off this year’s accounts.

The £15,503 at credit of Profit and Loss Account (including £4.607 brought for ward) therefore has been disposed of as follows: Dividend of 1/- per share on ordinary shares £4,000 Twenty per cent, of cost of estab lishing mainland services .. .. 5,332 Carried forward 6,170 A total of £16.888 was charged, against revenue, as depreciation on plant in New Guinea and Australia.

Tonnage carried in New Guinea was 8.403, compared with 6,705 tons the pre vious year, and constituted a record. Pas sengers increased from 11,869 in 1937 to 12.120 (which was within 17 of the re cord). but gross revenue fell from £96.134 to £92,542. The fall was caused by a drop from 2.49 d. to 1.94 d. a lb. in the average freight charge, a cut of 20 per cent.

Paid capital has increased from £BO,OOO to £160,000 because of the issue of £BO,OOO preference shares. Reserve remains at £45,000. Bank overdraft has been reduc ed from £24.420 to £10,471. and open ac counts are £13.972. compared with £16.172 in 1937. Sundry debtors have increased from £29,603 to £37,856.