Holding

Burns Philp Profits Are Holding Remarkable Financial Strength of Big Firm

THE great internal strength of Burns Philp & Co., Ltd., is disclosed in the annual report for the year ended March 31. Profit in a normal pre-war year was about £250,000. Yet, in the year just ended, operations yielded just over £200.000. And this firm had large, far reaching interests in New Guinea. Solo mons, Papua, and Nauru—all invaded by the enemy.

Its operations to-day are confined largely to New Hebrides and Australia (the South Seas Co. takes care of the Central Pacific Territories): but its activities cover so many fields that, what it has lost on the invaded Territories’ swings, it has gained on the Australian roundabout.

Some Territorians may wish to weep over the fact that, in these evil days, the Big Firm still can nay 10 per cent. They should comfort themselves with the thought that, if the heart-breaking work of rehabilitation in the Territories can not be undertaken bv a war-broken Government, substantial help may be forthcoming from the huge reserves of the Big Firm.

The following table shows what has happened since Munich:—

The 1943 nrofit is arrived at after charging £112.993 for depreciation, as against £107.865 in 1941-42. Gross nrofit was £1.241.715, compared with £1,598.523. and exnenses were £878.045, against £1.110.445. Dividend is maintained at 10 ner cent., requiring £200,000, and the carry forward is increased from £32,066 to £33.530.

In their report, directors state that onerations throughout the year nroved difficult because of prevailing abnormal conditions. Although many factors ini mical to profitable trading had to be contended with, all sections of the com pany’s business were reasonably well maintained.

To Gross Profit Net Profit March 31 £ £ 1939 .. .. 1,246.228 251.144 1940 . . . . 1.‘>84.081 260.621 1941 .. .. 1.385.059 270.657 1942 . . . . 1.598.523 194.435 1943 .. .. 1.241,715 201.464