DIRECT SUPPLY COMPANY.

New Zealand Herald, Volume XXXVIII, Issue 11619, 5 April 1901, Page 3

DIRECT SUPPLY COMPANY.

A PROSPEROUS r YEAR. The annual meeting of shareholders in the Direct Supply Company took place yesterday afternoon, Mr. ' John Brown, chairman and managing director, presiding. The directors' report was as follows: — " Your directors have again the ' pleasure of meeting you with a very favourable balance-sheet, showing the profit for the year to be £7672 10s 7d. Though somewhat in excess of the profit for the preceding year, this amount does not show an increase proportionate to the business done, as the turnover has been much 'larger than in any previous year. This is v mainly the result of the determination of supply goods at the lowest rates, and to trust to a larger volume of business to accrue from such a policy. The result has been satisfactory, and with the exceptionally strong manufacturing and purchasing power of the company, your directors intend to continue a similar course in the future. During the year the capital of' the company has been increased by the issue of 60,000 new shares of 10s each; 30,000 of these shares, paid up to Bs.each, were allotted to the shareholders in terms of the resolution passed at an extraordinary meeting held' on March 30, 1900 ; and 7000 shares further have since been applied for and allotted.' Proposals are now before the Board that will probably lead to a large portion, of the shares now in reserve being soon taken up. Your directors recommend a dividend for the half-year at the rate of eight per cent, per annum on the paid-up capital (a, half-yearly dividend and bonus having been paid in October last), together with a bonus of five per cent, on shareholders' payments for the half-year; also that a bonus of five per cent, on the year's wages be paid to warehouse employees who have been twelve months in the service of the company, and are not, already in the receipt of a coihmission; and; that the sum of £3680 be carried'to undi- : vided profits account, which will then stand' at £5602 12s 6d." • , , '

ifcIU.OOO U " The Chairman, in moving the adoption of the report and balance-sheet, said that he had no doubt but that the same would be considered satisfactory by the shareholders, as besides the usual dividend and bonuses a very substantial amount had been carried to the undivided profits account. Taking the. result of the year's operations into account, it might occur to some that a somewhat larger dividend might have been declared, but the growth of the business had been so continuous and rapid that it had always been out of proportion to the amount of called-up capital. The necessity thus caused had been met by the willingness of several large holders to advance the necessary amount of capital on deposit, enabling the company to secure the very heavy lines of stock in all departments. Now, owing to the great increase in the volume of the business transacted, and in order to give the choice and variety demanded by the public, the wisest course had "been pursued in husbanding their resources. Sufficient time bad not elapsed since the increase of capital in the early part of the year to materially benefit the position, bub "in all probability, at the next annual meeting the whole of the shares now in the hands or the directors, would have been allotted, the capital from which, with the accumulated profits, would enable the-payment''"of a dividend more in keeping with the earning power of the company, ii.it were desirable to do so. The assistance of the shareholders was requested in carrying out the above, as in asking their friends to join the company, which was a purely co-operative one, all profits going to the credit of the holders, they would be simply getting them in on exactly the same terms as those upon which the old shareholders, came in. As pointed out in the report the bulk of the shares were expected to be taken up in a few months, when very few would remain in hand for disposal. The reports and balance-sheet were then adopted. :: : ' Mr. James Russell, the retiring director, was re-elected, and Mr. O. B. Waymouth was re-elected auditor. '■■'•■" The Chairman announced that the dividend would -be payable at ■ the company's office on Tuesday, April 9. . Votes of thanks were passed to the staff and the directors. . i

The following is the balance-sheet.:>. BALANCE-SHEET. ■ LIABILITIES. Capital Account— ■■« .■-;■'- -;■■■. :. £ s. d. •.•-,:;£-- s. d. '120,000 shares, lOaf :..." "...: .;. '60,000 0 0 Less unallotted 23,795, at 10s ... 11,897 10 3 Less uncalled 96,205, at 2s 9,620 10 0 21.513 0 0 33,182 0 0 Cash on deposit ... 12,233 11 6 Bills payable 7,035 8 6 Outstanding accounts 2,352 9 8 -, 9,387 18 2 Bank of New Zealand . 4,171 2 5 Reserve fund of undivided profits, including premium on shares 1,922 12 6 Profit and loss ... 7,672 10 7 Less interim dividend, October, 1900 ... 1,674 8 6 . — i -5,998 2 1 '.'-■' £72,195 6 8 ASSETS.Freehold and leasehold properties and working plant ... 6,894 1 8 Less reserves ... 641 0 0 6,253 1 8 Stocks in hand, and in transit, at Auckland and branches 54,565 2 11 Bills receivable and outstanding accounts ... ... 11,983 8 6 Less reserves to cover possible' losses ... 1,518 3 9 , 10,465 4 9 Mortgage 430 0 0 Cash in hand 481 17 4 £72,195 6 8 PROFIT AND LOSS ACCOUNT. Dr. ■£ s< d. To wages, rent, insurance, taxes, etc ... :.. 14,868 6 7 To balance" 7,672 10 7 £22,540 17 2 Or. £ s - d - By gross profits on sales 22,540 17 2 £22,540 17 2 ■RESERVE FUND OF UNDIVIDED PROFITS. Dr. . . £ a. d. June 1st, 1900— To amount carried to capital account, as resolved March 30, ..._.. 1900, 29,879 shares at 6s 8,963 14 0 To balance ... ... ___— _ £10,886 6 6 Cr. . £ S. d. February, 28, 1900-By balance in hand at date 6,290 » J March 30, 1900-By amount car- n ried to fund as resolved 4,400 0 0 February 28, 1901-By premium on shares sold during year ... ... 195 " ° £10.886 6 6