Burns, Philp

Earnings

Effect of Jap Invasion

THE sixtieth annual report of Burns, Philp and Co. Ltd. (year ended March 31) and the twenty-second annual report of Burns Philp (South Sea) Co. Ltd. (year ended January 31) were issued during the month. The fol lowing figures summarise the results of the year’s trading, with previous year’s figures added for comparison:—

The figures show the great internal strength of both companies. Although they both were subject to general war conditions, and although both received some set-back from the Japanese inva sion before their books closed, they were able to maintain their rates of dividend.

But the position now is much altered.

The parent companv has lost all its busi ness. and much of its assets, in New Guinea. Papua and the East Indies, while the South Sea Co. similarly has lost its Solomon Islands and Gilbert Islands establishments. The parent com pany, however, retains its now very con siderable Australian and New Zealand business; while the South Sea Co. is as yet untouched in Fiji, Tonga, Samoa, New Hebrides, etc.

Nonetheless, both companies probably will show much reduced figures in the current year—especially the parent com pany. Discussing prospects at the annual general meeting of the parent company on Mav 28, the chairman, Mr. James Burns, said that the company would do well if, a year ahead, it were able to distribute a dividend similar to that paid this vear. or at the approved rate—as it seemed likely that legislation to control dividends would be passed.

While the fleet was under Government control, he said, the company would be unlikelv to receive from shipping more than denreciation on the original cost and the bare rate to cover interest. After the war. large sums would be necessary for shipping replacements.

1942. 1941.

RP Net Profit .. • • £194,435 £270.657 ■R P (S.S.) Net Profit 45.661 38.971 Dividend,

Bp. Co. .. 10%

10%

B.P. (S.S) Co. 5%

5%