KEYSTONE INVESTMENTS

Dominion, Volume 32, Issue 157, 29 March 1939, Page 12

KEYSTONE INVESTMENTS

Results Of First Year’s Operations The directors of Keystone Investments Ltd., Wellington, in their firrtt annual report for the period ended January 31. state that the total revenue amounted to £573/6/4 and expenses to £lb.j/IZ/6, leaving a net surplus of £407/13/10, from which an appropriation of £l5 was made to a reserve for possible taxation. Before this surplus was ascertained, lull allowance was made for interest on payments in advance of calls at the rate of 4 per cent, per annum. . The directors recommend that a dividend of 4 per cent, per annum be paid, to be calculated on the amounts paid up on the shares from time to time. This dividend will amount to £324/4/3, less the amount of the interim dividend paid in August last, £ll4/8/1, leaving a balance of £6B/9/7 to be carried forward. The outlook for investment, still remains obscure and accordingly a conservative policy is being pursued by the directors in making investments and this is indicated by the amount invested in preference shares. The availability of funds for investment, due to the steadily increasing capital, while permitting many holdings to be acquired at attractive prices, haw enabled the principle of averaging to be applied. This practice has produced a portfolio which, at balance date, could have been purchased with New Zealand funds, at a cost of only 1.8 per cent, below the bal-ance-sheet cost. Shareholders will be aware that the fall in genera) market values has approximated 10 per cent, over the last 15 months. The capital of- the company haw increased steadily and during the seven weeks since the balance date more than 25.000 shares* have been allotted. The retiring directors, Sir Charles Statham, Messrs. F. W. Furkert, Will Appleton. G. G. G. Watson and E. Shields-Brown, are eligible for re-elec-tion. The following table shows the distribution of the company’s investments: — Per cent.

Chain stores Department stores . Insurance ....... Banks ... of total investments. 28.87 4.82 1.15 1.57 Heavy industries .. 4.54 Building trades . .. 5.42 Finance 5.97 Pastoral 3.:«> Manufacturing indus dries . ... 25.45 Public utility 2.97 Transport 1.24 Newspapers 4.541 Metals 4.9(5 Miscellaneous .... 5.42 The company’s investments are disIributed as shown in rhe following table: Australian Per cent, of total. Pref. Ord. Total 2(1.99 55.52 81.(51 New Zealand .... 7.1(1 .11.23 18.39 Totals 33.25 (10.75 190.00