Good Profits Still In
p. 16 · Read in the full issue
Pacific Trade Burns Philp Balance Sheet is interesting
THE enormous internal strength of Messrs. Burns Philp & Co., Ltd., is shown in the company’s balance sheet for the year ended March 31, just issued. In view of the vast disturbance in world trade, the dislocation of shipping lines and the condition of the copra market, a sharp contraction of earnings and profits might have been expected.
Instead, here, are the figures in detail, as published in “Sydney Morning Herald”.
They are worth examination:—
Although the directors have provided another £25,000 for war risk insurance, and £35,000 wherewith to write down the value of properties in New Guinea and Papua, there nevertheless was £37,600 to carry forward, after paying the usual 10 per cent.
It is an outstanding example of the wisdom of not having all your eggs in one basket. Many varied, widely scattered enterprises contribute to the revenues of this big firm.
Some critics may not be able to get beyond the fact that the big firm has made a record profit in a year of terrors and misfortunes; but, actually, the balance-sheet is a good thing. It gives direct, tangible proof of our frequent assertion that the South Pacific terri tories are no longer dependent wholly on copra, and that there still is plenty of money in the South Seas. And it shows the Territories residents that, while BP is there, they need not fear the cold blast—because a firm so wealthy and well-managed must, in its own interests, use its enormous resources to help the Territories over the bad years.
Judge H. F. Ayson, Resident Commis sioner of the Cook Islands, returned to Rarotonga in April from sick leave in New Zealand.
Rev. H. Matthews, Rector of St. John’s Anglican Church, Port Moresby, Papua, visited Melbourne, Victoria, in April.
During his absence Rev. V. Redlich, who has been engaged in missionary work in the North East Division, will be in charge of the parish. Rev. Matthews has been at Port Moresby for seven years.
Year ended March 31. 1939. 1940. 1941. £ £ £ Net profit 251,144 260,621 270,657 Div., 10 p.c 181,250 200,000 200,000 To reserve 25,000 25,000 War risk insur. .. 50,000 25,000 25,000 Special deprecn. ., — — 35,000 Staff retirement .. — 10,000 Carried forward .. 26,353 26,974 37,631 Expenses, etc. . .. 827,158 845,020 931,163 Depreciation, etc. . 130,633 121,042 136,423 Bad debts, losses . 37,292 57,398 46,816 Gross profit .. .. 1,246,228 1,284,081 1,385,059
Liabilities—
Capital, paid up . 1,875,000 2,000,000 2,000,000 Reserve fund .. 1,200.000 1,225,000 1,250,000 Insurance res., etc. 613,643 697,453 816,435 Cash credits .. 122,552 65., 130 60,099 Bills, foreign drafts 939 1,861 — Creditors 880,757 1,032.385 1,170,595 Branch balances .. 923,365 693,780 888,576 Owed to subsids. .. 65,173 70,495 183,434
Assets—
Merchandise, copra, advances 1,185,302 1,125,024 1,207,921 Cash in hand .. 168,410 180,795 226,130 Property, shipping . 1,758,140 1,841,340 2,088,300 Debtors 893,493 958,451 886,781 Owing by subsids. . 110,817 114,782 166,288 Shares, Govt. sec. 997,367 978,160 1,250,719 Shares in subsids. . 763,005 774,527 740,629