MONEY FOR INVESTMENT

Sun (Auckland), Volume II, Issue 445, 29 August 1928, Page 12

MONEY FOR INVESTMENT

GENERAL IMPROVEMENT NOTED TREND ON ’CHANGE

By

“Noon Call.”

August 29, 9 a.m. No diminution is noted in the amount of capital coming forward for investment. The past week saw several rises in the market for the more popular securities with the demand specially keen for banks and insurances. The pastoral group registered the biggest turnover for many months. The increased attention paid to the loan and agency or pastoral group provides the key to the whole situation on ’Change at the moment. The past season was one of the best this country has experienced for several years. The financial surplus, although slow in finding its way into investment channels, is now coming forward. Already the. new season is well under way. The dairying year has started with new high records for production reported from all parts of the country, and forward purchases of dairy produce indicate a very satisfactory market for the greater part of the season. Across the Tasman the woolselling season opened last week with the position of the market little different from that of last year; if there is any difference, it is considered to be for the better, as reports from all manufacturing centres indicate that the finished article is sold as soon as it is produced, while the wholesale and retail houses are not holding heavy stocks. The improved position of the primary producer is already being reflected in the cities, and there has been a decided increase in the number of companies registered during the past month. Summed up, the position shows every sign of a continuance of the trend towards a lower rate of interest. This is especially noticeable in the demand for gilt-edged and the more popular securities which are recording steady turnovers, despite a gradual but decided upward movement in the market.

Position Across Tasman Australian conditions are largely linked up with our own, and reference to movements over there are of interest at the moment. Recently the Commonwealth treasurer came on the market with a £20,000,000 cash and conversion loan, and the lists were withdrawn last week, three weeks before redemption date. Had the treasurer cared to keep the lists open longer it is estimated that he could have obtained considerably more money than that required to pay off the holders of maturing stocks and bonds, a fact which is proof of the healthy condition of the Australian investment market.

A particularly satisfactory feature of the transaction was the large proportion of new money, approximately £8,000,000, that was put into the issue. One outcome will be that excluded investors will be under the necessity of finding new channels for the employment of their funds, mainly through the open market, in which, consequently, there should be the tendency for business to become more brisk until the credit is absorbed. The currency of the loan was seven or 14 years. It carries an interest rate of 5$ per cent., and was offered at £9B 10s. Movements on New Zealand 'Change Movements on New Zealand ’Changes over the past week have been generally upward, several stocks reaching new high levels. New Zealands show the biggest rise in the banking group, the market closing last evening with an advance on last week’s rates. Commercials are very firm. Nationals of Australasia reached new high levels for both issues, easing slightly toward the close, however. i In insurances, a further strengthening of market for scrip in the two principal New Zealand concerns took place, New Zealands being dealt with at 44s and South British at 63s 3d. The loan and agency group is particularly healthy, business being very widespread, and the group, generally, showing considerably increased strength. Huddart Parkers are easier following the publication of the rate of the interim dividend. Kaiapoi Woollens have justified the faith shown by holders who made their purchases on the lower levels and a rise of Is 9d in the market for the ordinaries has been recorded since the publication of the company’s balance sheet. The miscellaneous group is healthy, with a large preponderance of buyers for all the better class securities. Wilson Cement shows an advance of 6d on last week’s closing level. Although business in Government bonds and stocks has been confined largely to 4h and 55 per cent, bonds, there is a very firm tone in the market generally. Reti/rn On Investment Below is a summary of sales made on New Zealand ’Changes over the week, giving the approximate return on investment based on the latest dividend. In the case of Government and local body debentures the return includes redemption. In the first column are the figures at which the latest sale

AUCKLAND AMUSEMENT PARK

NET PROFIT OF £767 A net profit of £767 is snown In the profit and loss account of the Auckland Amusement Park, Ltd., for the year ended July 31, 1928. A dividend of 10 per cent, on preference shares is recommended, but ordinary shareholders will not participate in a dividend. Last year, the company’s initial season,' a profit of £10,415 was shown, and dividends of 25 per cent, and 10 per cent, were paid on ordinary and preference shares respectively. The report shows a revenue of £20,794, or an average of £B3l a week for the 25 weeks in which the park was open, as compared with £24,550, or an average of £1,536, for the 16 weeks of last season. The profit and loss account shows a net profit of £766 after providing for running costs, salaries and insurances, and allowing £4,734 for depreciation. Last year £3,418 was allowed for depreciation. The profit and loss appropriation account discloses that several amounts relating to the first year’s operations have been charged against the second year, these including £704 as balance of the preference dividend, £6SI additional provision for income tax, and £750 for directors’ fees. These sums absorb the £766 profit and £938 brought forward from last year, and leave a debit of £775 in the profit and loss account. DAYLIGHT SAVING AFFECTS RETURNS “Daylight saving proved to be a decided factor in the reduced takings,” states the report, “the effect being that although the park was open for business at 7.30 p.m., it was generally between 8.30 p.m. and 9 p.m. before the attendance reached its maximum, and as patrons would not remain after 10 p.m., except on Saturdays, the length of spending time was reduced by one hour from Monday to Friday. On account of the decision of the income tax department to tax the company this year on a proportionate amount of last year’s earned income, it was found necessary to make a further provision of £6SI, as against last year’s profit. Additional charges of. £2,480. added to the excessive interim dividends paid the first year, totalling £7,270, and other charges of £2,206 as shown in last year’s profit and loss appropriation account, making in all a total of £11,957, exceeded the profits made that year by £1,542. It was hoped that sufficient profits would have been earned to write this amount off and to have enabled a small dividend to be paid on ordinary shares, but the directors consider that the- explanation given above provides the reason for the non-fulfil-ment of their hopes in this direction ’’ The company’s assets are valued at £37,865, as compared with £38,213 last year. FolloAving are the principal items, the corresponding values for 1927 being in parentheses:—Plant and buildings, £29,854 (£24,100);; cash and investments, £4,498 (£10,989). Liabilities are made up of £35,654, in respect of paidup shares (ordinary £25,000, preference £7,654); £1,333 owing to sundry creditors; and £877 provided for income tax. The annual meeting will be held on September 11.

COMPANY REGISTRATIONS

Recent company registrations in Auckland include the following:— PUBLIC COMPANY Gold Seekers, Limited, mining prospectors and engineers, etc. Capital, £1,250, divided into 100 shares of £l2 10s each. Subscribers, Henry Hayward, five shares; Robert George Boyd, Arthur Robinson Shutes, Robert Taylor, Joseph Wilfred Craven, two shares each; and William Basil Woolley and William Patterson, one share each. PRIVATE COMPANIES Cleary’s, Limited, gentlemen’s outfitters, Hamilton. Capital, £2,000, Divided into £1 shares. Subscribers, John Domonic Cleary, 1,950 shares; and Henrietta Cleary, 50 shares. Settle Brothers, Limited, general storekeepers, at Hinuera and Te Poi. Capital, £2,000, divided into £1 shares. Subscribers, Herbert Settle and Wilfred Settle, 950 shares each; and Clara Settle and Mary Settle, 50 shares e^ich. R. W. Strong, Limited, wholesale and retail dealers in music, musical instruments, gramophones, radio, etc. Oapitap, £SOO, in £1 shares. Subscribers, Robert Wilfred Strong, 275 shares; Francis William Martin, 200 shares; and Dulcie Meale Strong, 25 shares. Bronze Lacquer and Paint Sprayers, Limited. Capital, £2OO, in £1 shares. Subscribers,, Gilbert Shirwell Mouatt and Robert Murray Crockett, |IOO shares each.

was recorded: — Latest. Approx. Price. Dividend d. BANKS— New South Wales 50 12 6 4 o New Zealand . . 3 1 6 Ditto D Mort. . . 1 8 0 Com. of Australia . 1 10 10 4 Com. of Sydney . . ZG 15 0 4 Eng-., Scot, and Aus. 8 12 6 Nat. of Australasia (paid) 19 0 0 5 Ditto (con.) . . 9 n Union of Australia . 15 5 0 4 Nat. of N.Z 7 5 6 Adelaide 9 13 6 5 Aust. of Com. 1 13 11 4 14 INSURANCES— National 0 16 6 4 10 11 New Zealand .. .. 2 4 0 4 South British .. . . 3 3 3 3 13 9 LOAN AND AGENCY— Goldsbrough, Mort . 2 11 4 5 16 10 United Building0 14 9 Nat. Mortgage . . . . 4 0 0 6 0 N.Z. Loan 111 0 0 6 15 Dalgety and Co. . . 14 19 6 5 0 2 N.Z. & River Plate 1 11 3 5 15 4 COAL— Taupiri (ord.) .. .. 1 7 6 7 5 5 Westport-Stockton (ord.) 0 3 S Hikurangi (ord.) 0 6 0 — GAS— Christchurch (10s paid) 0 12 6 Auckland .. 1 3 0 G 19 2 SHIPPING— Huddart-Parker 2 9 0 4 O; Northern Steam 0 14 3 s *2 0 P. & O. (def stk) 236 0 0 4 4 9 WOOLLENS— Kaiapoi (ord.) .. .. 0 13 3' 7 Ditto (con.) .. . . 0 3 9 Mosgiel 7 5 0 5 10 4 BREWERIES— Toohey’s 1 11 4 Tooth's 2 6 6 7 Q New. Zealand .. 2 7 9 4 3 9 TIMBERS— Kauri 1 0 6 — i

MISCELLANEOUS — British Tqbacco 2 3 6 4 12 10 Donaghy s Rope and Twine 1 13 0 6 1 3 Wilsons Cement 1 19 0 0 N. Z. Refrig-, (pd.) 0 IS 11 7 IS 1 Ditto (con.) . . 0 9 IS Hayward s Pictures . 1 0 0 9 0 0 Morris Hedstrom 1 1 0 14 Whit tome-Stevenson 10 0 0 0 Perdriau Rubber . . 1 15 0 10 Smith and Smith (pref.) 0 17 6 6 17 1 Holden’s Motors 1 9 9 3 11 Electrolytic Zinc (pref.) 1 14 0 9 N.Z. Drug3 11 0 5 12 S Milburn Cement — 5 11 11 MININ G— Waihi 0 13 0 — Mahakipawa .. .. 0 Ohinemuri 0 10 —■ Ditto (pref.) .. .. 0 9 6 — DEBENTURES— N.Z. War Loan, 1938, 41 per cent 99 5 0 4 11 11 Ditto. 1933, 55 p.c. 101 5 0 4 ■ 3 Auck. Har. Board, 1936, 4 per cent . . 90 0 0 5 11 8 N.Z. Ins. Stock, 1936, 55 per cent 101 2 6 5 6 6 Ditto, 1930, o\ p.c. 99 0 0 b 15 b