Company News CH’CH GAS YEAR

Press, Volume C, Issue 29514, 16 May 1961, Page 19

Company News CH’CH GAS YEAR

Profit Up 36 p.c.

Net profit of the Christchurch Gas, Coal and Coke Company, Ltd., rose £10,378, or 35.8 per cent., to £39,330 in the year ended March 31, 1961. The previous year profit rose £607. The latest result is reached after provision of £52,543 (down £5724) for depreciation and £39,480 (up £10,091) for taxation. It represents an earning rate of 6.25 per cent, on shareholders’ funds, compared with 4.72 per cent on lower funds last year. Sales of gas. residuals and goods rose £41.087 to £619,688. Materials and wages rose £33,569 to £426,007 and salaries and other expenses were £11,788 higher at £62.614. A new item of revenue this year was £9540 from interest on Government stock. New Reserve Recommended dividend is again 6 per cent.—the rate paid since 1959—and requires £23,058. A new reserve, the dividend equalisation reserve, is established by the transfer of £lO.OOO. Last year £20,000 was transferred to the depreciation reserve and £8583 to the general reserve, but no transfers are made to these reserves this year. Profit exceeds these appropriations by £6272 and carryforward is raised to £36,318. Directors report that the company raised £350.000 by the issue of a debenture to the A.M.P. Society at 5j per cent. “This capital is required for the financing of a new gas holder and other commitments and is being repaid over a 20-year term on table mortgage.” Balance Sheet Changes

A new item of £344,950 — term liability to the A.M.P. Society—appears in the balance sheet. Current liabilities have fallen £33,054 to £240.775. Under this heading, overdraft has been reduced from £97,792 to £50,608 and the amount owing to the State Advances Corporation has been reduced from £90,000 to £30,000. On the other side of the balance sheet appears a new item, £350,000 of investment in Government stock. Current assets are £5335 lower at £152.946 and fixed assets are £14,303 lower at £757,686. Uncompleted contracts for capital expenditure £4OOO last year has risen to £252,000. Provision for renewals are £1194 higher at £45.524. Reserves are £lO.OOO higher at £208.768 and shareholders funds are £16.272 higher at £629,383.