MORRIS HEDSTROM, LTD.

Sun (Auckland), Volume IV, Issue 994, 10 June 1930, Page 11

MORRIS HEDSTROM, LTD.

A SATISFACTORY YEAR Notwithstanding a steady decline in the selling value of the primary products of Fiji, the year ended March 31 was a reasonably satisfactory one for the firm of Morris, Hedstrom, Ltd. The annual report of the company .shows net profits of £70,357; with the amount brought forward from last year there is £110,309 available for distribution. Payment of the interim dividend on preference shares absorbed £6,576 and that on ordinary shares £20,816, leaving £83,417 now available for distribution. The directors recommend a final dividend of 3 per cent, on preference shares, absorbing £6,576, and 4 per cent, on ordinary shares, absorbing £20,816. A writing down of the value of the coconut plantations by £15,000 is also recommended, leaving £41,025 to be carried forward. The chairman, Sir Maynard liedstrom, states in his address, which has beer: circulated with the balance sheet, that under all the circumstances the profit and loss account may be considered satisfactory, although the gross profit shows a falling off of about £7 500 and the net profit a reduction of ’£3,286. Regarding provision of £5,915 for depreciation compared with £l3 591 last year, he remarks that for sonie years past provision for depreciation has been made on a liberal scale and the directors consider the provision made this year adequate. Commenting on the fact that the directors do not recommend any transfer to the reserve account, the chairman says that the continued fall in the price of copra and the fact that low prices are likelv to rule for some years has reduced the capital value of all coconut plantations and the writing off recommended by the directors is necessarv If markets are stabilised at about present values further provision mav be advisable later. The prospects for the coming year are stated to be only fair. The sugar crop in Fiji will be about the same as last year, but the production of copra is likely to be substantially less than in 1929, when exports from Fiji reached the record figure of 32,226 tons.