INCREASED PROFIT

Dominion, Volume 32, Issue 145, 15 March 1939, Page 12

INCREASED PROFIT

Woolworths Ltd., Sydney

A SUCCESSFUL YEAR Woolworths Lid., Sydney, report that the profits for the year ended January ol after deducting all working expenses ami making adequate provision for depreciation were £303,693. From this amount is deducted the transfer to tax-free reserve of dividends £49,899 received from 001worths (New Zealand) Ltd. during the year and included in the above profits, leaving £253,794. After setting aside as provision tor taxation £32,000, tile net profit for the year from Australian sources amounts to £221,794, leaving a balance available for appropriation of £194,714. Interim dividends on ordinary shares amounting to £100,404 have been paid, to which is added the amount brought forward from tax-tree reserve, being dividends received troiu Woolworths (New Zealand) Ltd., as follows * Balance undistributed as at January 31, 1938, £11,361, and amount, received as at January 31, 1939, £49,899, totalling £61,260, amounting to £194,714. The directors recommend that this balance be dealt with as follows: Declaration of a dividend in respect of the year on the paid-up ordinary share capital of the company of 7J per cent., payable out of profit from Australian sources, £83,550; declaration of a dividend of 4 per cent, on the paid-up ordinary share capital of the company payable wholly and exclusively out of the tax-free reserve as above, £44,<X>o, in all £128,110. Also appropriation to staff provident fund. £2500, and New South Wales charities, £2500; transferring to general reserve £61,604. After making the above transfer to general reserves the company's reserves (excluding depreciation reserves) will aggregate £100,409, which are used entirely within the business. It is to be noted that it is recommended that a dividend of 4 per cent, on the ordinary shares capital be declared, payable wholly and exclusively out of the taxfree reserve of dividends received from the company’s investments in Woolwortbs (New Zealand) Ltd. The directors are advised that this dividend payment is free from New South Wales State (excluding special income tax) and Federal income taxes in the hands of shareholders in New South Wales. The directors report that the affairs of the company have progressed favourably, including new stores that were opened during the year, and that al] branches and subsidiaries are operating successfully. The dividends received from the company's investments in subsidiary companies have been included in the accounts under review.

During the year a separate company known as Woolwortbs Properties Ltd. was formed for the purpose of taking over the freehold properties owned by the company other than the bulk store. Ibis company is now in full operation and wdl undertake any further purchase of freehold property that may be required. Hie present balance-sheet does not therefor*? include any freehold properties* previously held other than the bulk store.