TOBACCO INDUSTRY.

Shannon News, 3 July 1923, Page 3

TOBACCO INDUSTRY.

Mammoth profit. The public of New Zealand who \yonder why their plug of tobacco is 1/6 instead of 1/- need not be left in doubt long when they read the following of how the profits of tobacco companies mount up. Another big industrial company rtroposes to give its shareholders a large share bonus says the Lon dop Daily Chronicle). Recently the directors‘of Arthur Guinness. Son and. Co., the brewers, announced their intention of distributing 2,500.000 £1 shares of their shareholders as a free bonus. Now the Board of the Imperial Tobacco Company (Great Britain and Ireland) ha,s decided to give its shareholders a bonus. The Imperial directors propose to distribute one new £1 share for every three held by the shareholders. As the issued ordinary share capital is £22. 472.658. this means that the bonus will be enual to £7.490.886. To make this distribution, part of. the reserves will be caoitalised. The last balahce sheet, which was made up to October 81. 1022. and issued in January, showed that the total of'the share premium and general reserves, was £22.000.000. so that the company mil still have a large reserve after the bonus is distributed.

The net trading profit for la, -4 yeair was £7.194.556. and the dividend 221 per cent,., tax free. - • This is bv no means the first bonus which the shareholders of the Imperial Tobacco Companv have received, Tn- 1916 . 2,784.499 shares were distributed free, at the rate .of <one new. share for every three then held. A vain, in,1918, 2.786.623 shares were distributed as a boon's at, the rate of one for I evbrv'two held. Tn August. 1919. 786.623 shares were distributed as. a bonus at the rate of one for everv. ! two held. In August. 1919. 8.259.872, j shares were offered to the'shareholders | at the rate of one sharp for 'each one | hpm. and in Anril, 1920. a < further, 5 573 248 shares were offered at £2 each at the rate of one share, fop eVery Ihree held. At *hp time of, the 1919 ,-cjcpo a.pft i n 190 ft th« market;,, Mica .of the chares was much above the .ryi at which they w°rp offered, to Ike shareholders, so that issues, also, c onstituted substantial vbonuses. ;;;