Airways

The Luck Of Guinea

Or Did The Directors See Into The Future?

GUINEA AIRWAYS, LTD., reports profit of £14,180 for the year to February 28, compared with £13,945 for pre"vious year. Dividends of 7 per cent, on both preference and ordinary shares absorb £11,200, and £5,000 is transferred to general reserve.

Directors state that for the first time in its history the company’s activities have been confined solely to Australia. The detailed war damage claim has been lodged with the War Damage Commission, involving slight alteration of the figures appearing in last year’s account, but settlement of this claim will not be made until after the war.

In the directorate of this company there is either pre-vision amounting to genius, or sheer luck. In 1937, the Co transferred enough of its plant from New Guinea to allow it to enter the Australian air transport business; and. to finance the big change, it increased its issued capital from £50,000 to £160,000. Early in 1942, the Japs crashed into New Guinea, and the original Guinea Airways organi sation was wiped out—or, at least, sus pended for the duration. But, by 1942,

the new Australian section of Guinea Air ways was coming into profitable action, on the Adelaide-Darwin run. (See “PIM” of May, 1942.) In this last year, with New Guinea right out of action, Australia has earned enough (£14,180) to pay the usual 7 per cent, on all shares.

Guinea Airways shareholders clearly were born under one of the luckiest stars in the heavens. During the 13 years they operated in New Guinea, their subscribed capital of £50,000 earned them profits of approximately £24s,ooo—equal to no less than an average of about 38 per cent, per annum! And then, when the inevitable Jap invasion comes along, they find that their business, instead of being paralysed, like all other New Guinea businesses, is operating safely in Australia, and earning them a steady 7 per cent.!