GOAL INVESTMENTS

NZ Truth, Issue 1262, 6 February 1930, Page 19

GOAL INVESTMENTS

(By "Fiat Lux.")

For the. year ended September 30, 1929, the annual accounts of the Westport Coal Company disclose a drop m gross profits of £1234; and £2321 m the net result. • The shareholders' have had to be content with a reduction' •••■•-. m the. dividend rate from lli/4 per cent, to 10 per cent. Notwitli- •: ■ standing^ /this, however, an examination of the Balance Sheet reveals that the company still maintains a very strong position.

»ThHE Insurance Fund has increased' by I ': £7,980 and now stands at £156^033. This fund is proving quite, a nest egg' for shareholders, as it has shown a' 'consistent growth over, the past f,ew .'■ years, In addition to providing a bonus ' dividend of 2% per cent. ! Sundry liabilities show an increase of ■ £7,W* and stand at £232;107. This is - »übh'a comprehensive liability that it is ■ Impossible to say, without reference to

offset to some extent by a reduction 'in cash of £19,656. No\ details are furnished of the investments and the investor is therefore unable to te!l- to what extent this asset is represented by .gilt-edged. securities. • ■The net result for 1929 is stilt considerably lower than the results m 1925 and 1926; although slightly better than 1927. ' Summing up the. position, the company appears to be-in a position, to meet any

the company's bootfs, whether the increase represents an increase m outside liabilities or. whether it is due to internal accounting adjustments. On the asset* side the property accountsr show a reduction of £9,850, due, no doubt, to depreciation written off. Debtors show an Increase of £6,498, but there Is a corresponding reduction of \£5,108 m stocks. : Bills receivable are increased by £4,054 and the sinking fund has been increased by £5000. Investments show a substantial increase of £30,365, which is

eventuality, and offers a very attractive investment. . The approximate market price In ; January was £1/11/-, which shows a return of £6/9/- per cent, based on last years' rate of. dividend. Events are proving that coal has by no means, passed its days of usefulness. Despite the competition of hydroelectricity and oil, fresh avenues are being • found for the explottatiorf of coal, such as carbonisation and pulverisation, with the result that the outlook for the coal . industry has considerably improved.-

• THE WESTPORT COAL CO. LTD. . ; , , Condensed Comparative Balancesheet, 30th September, 1629. '' " ' LIABILITIES .ASSETS £ ■'.■'• '■.' ' .■ ■-:.■■'■■'■■. ' £ '.- Capital Paid-up. .... 450.000 — Property .....;..... Y 273,906 f9,850 Insurance Fund • 156,033 *7,980 Debtors V ........... ./ 67,652 *5,498 - Profit & Loss ...... 24,104 f4,421' Stocks .' .......... 24,529 f5,108 Shareholders* Funds 630,137 *3,559 v Bills Receivable ...... 6,590 *4,034 Sundry Liabilities .. 232,107 *7,094 Loans to Workers ... 3,173 * 370 Investments. ........ 331,157 *30,365 : .* Sinking Fund ...... 138,750 *5,000 • V- •'. Cash 16,487 t!9,656 ,- ' v£862,244»10,653 i. ' -." £862,244 *10,653 'NOTE.— *lndlcates Increase, flndlcates' Decrease as compared with 1928 figures