PROFITABLE YEAR

Auckland Star, Volume LXXIII, Issue 173, 24 July 1942, Page 3

PROFITABLE YEAR

MORRIS, HEDSTROM RESULT Net profit of £54.943 compared with £53.296 last year ana £51.783 in 1940 is shown in the accounts of Morris. Hedstrom. Ltd.. isiana tracers. Fiji, for the year ended March 31. Of the profit. £3393 was income arising from Australia. There was £122.362 available. The final dividend was 3 per cent on preference shares (actually paid on April 1, 1942). requiring £6576; a dividend of 2 3 s per cent on ordinary shares (1 2-3 per cent las* year), out of profits from sources outside Australia. absorbing £12,360; and a dividend ol per cent (1 1-3 per cent last year) on Australian profits, taking £3252. This left £100.1*4 to be carried forward. against £89.601 brought in. From the former, a sum necessary to buy a fighter plane was subscribed to the Fyi Fighter Fund, the anticipated cost being £5500 in Fui currency. At the annual meeting Li Suva on June 26 the chairman. Mr. R. Compton. said while the year had been profitable, much of the profit resulted from temporary causes. The war had not affected directly the areas in which trading was done. Therefore no direct provision had to be made for war losses. Provis.on against risks had been made. Profitable utilisation of cash balances held was difficult owing to the difficulty in replacing stocks. Owing to the war it had been possible to liquidate at good profits the copra stocks, the heaviness of which cave grounds for anxiety last year. Only part of the liquidation, appeared in the current accounts. Depreciation had been increased in that it was decided to write down book value of Australian investments to the mean figure between the maximum and minimum controlled prices. Concluding. Mr. Compton pointed out the dancers of war to which the company was exposed, but added that it was in a strong position to weather s'onr.s. He mentioned that the managing director. S.r Ma--nara Hedstrom. had been unable *o return from the United States, having been there since be:ore Japan entered the war.