Lower Profit For Colonial Sugar

Press, Volume CVI, Issue 31088, 17 June 1966, Page 13

Lower Profit For Colonial Sugar

(N.Z. Press Association —Copyrioht) SYDNEY, June 15. Consolidated net profit of Colonial Sugar Refining Company eased by 132,592 dollars to 12,913,130 dollars for the year ended March 31. The year before, net profit fell by 1,745,956 dollars or 11.8 per cent.

Latest result, however, is after a sharply reduced tax charge of 5,806,005 dollars compared with 8,509,592 dollars for 1964-65.

Pre-tax profit at 18,719,135 dollars shows a fall of 13.2 per cent on 1964-65. Total dividend is held at 12-1/2 per cent with a final 6-1/4 per cent. Earning rate is equal to 22.9 per cent on higher average capital, compared with 24.7 per cent the previous year. Result is also after provision for replacement of 9,813,409 dollars, up 310,285 dollars. Tax Allowance Income tax allowance in respect of investment in new plant and in mining were important elements in the reduced provision for tax for the 1965-66 year, directors say in their preliminary announcement. The profit was earned in Australia, Fiji and New Zealand by the company and its subsidiaries and associated companies. It was derived from widespread activities in raw and refined sugar, building materials, chemicals, ocean ships, distillery products, quarrying and ready mixed concrete, from services and from investments, directors add. Shareholders had been warned more than once that a further decline in profit could be expected in 1965-66, because of the low price of raw sugar. In an interim report in December last, the general manager, Sir James Vernon, said the effect of low sugar prices, while in itself serious, was being partly offset by improved results from other activities.

He also predicted that the tax provision would be lower and that the 12-1/2 per cent dividend rate would be maintained.

Midway through the latest financial year, the company made a one-for-eight share issue at 50 per cent premium.

The new shares did not rank for the interim dividend, but qualify for the final now declared. Paid capital is now 59.64 m dollars in one dollar shares. Kaniere Gold (From Our Own Reporter) GREYMOUTH, June 16. The Kaniere gold dredge worked for 200 hours in the half-month to yesterday. It won 1920 z of bullion from 141,000 yards of spoil.