YEAR’S WORKING

Otago Daily Times, Issue 26633, 2 December 1947, Page 7

YEAR’S WORKING

NATIONAL TOBACCO CO. DIVIDEND OF H PER CENT. The erection ol the new receiving store at Motueka was progressing slowly as building material became available. When completed, the new plant, added to the present, would give a threefold capacity, enabling the company to deal with all the crops contemplated to be grown, says the twenty-fourth annual report of the National Tobacco Company, Ltd., to be presented at the annual meeting on December 11, at Port Ahuriri. . - •• The last crop has again established a new record, yielding 1,600,0001 b of leaf, not just ordinary tobacco, but a that has never been grown here before, the report states. "Our stock of raw leaf, manufactured tobacco, and jnatenals has further grown and at the close of the financial year stood at £328,000. We are exceedingly fortunate in holding so much precious stock, and it is a guarantee that we can keep going without fear of running short of things that are essential.” On the balance sheet, total assets stood at £528,000 against total liabilities of £89,606. Paid up capital was £272,751, showing a surplus of £165,912. ' After deducting all charges, writings off for depreciation on buildings and plant, there was a balance left of £40,743 which represented the net profit for the year against which had been set aside a sum of £23,464 for taxes, leaving a balance of £17,279. To that must be added the balance of £10,145 brought forward from last year and £4815, being surplus of estimated income tax over assessment, making a total of £32,240 for distribution. The directors recommended again the distribution of the same dividend as last year, namely, 7J per cent, on both classes of shares, ordinary as well as preference, free of taxes, which would absorb a total of £18,775, including five months’ dividend on the new share capital, leaving a balance of £13.465 to be carried forward into next year. It was pointed out that, although tobacco prices were disappointing, the new price structure had considerably enhanced the company’s earning power and that shareholders could therefore look forward to corresponding results in the next year’s trading account.