WILSONS PORTLAND CEMENT

Auckland Star, Volume LIV, Issue 132, 5 June 1923, Page 6

WILSONS PORTLAND CEMENT

SHAREHOLDERS' ANNTJAI, MEETING.

A SUCCESSFUL YEAR. Sir George Elliot presided at the annual meeting of shareholders in the Wilsons (N.Z.) Portland Cement Co., Ltd., held this afternoon at the offices, Customs Street. The report and balancesheet (already published) were taken as read.

The chairman, in moving the adoption of the report and balance-sheet, said it must be generally agreed that the statement of accounts showed a satisfactory state of affairs. He explained that "creditors and income tax" showed an increase of £3G13 10/, which was due to the increase in the business of the company. The net profit for the year was £53.*259 12/10, as compared with £41,05S 17/11 last year, an increase of £11,270 14/11. Assets, property, plant, etc., showed a considerable decrease, as not only the 5 per cent allowed by the Commissioner of Taxes had been written off, but a further amount upon which income tax would have to be paid. The chairman said the sales of cement and lime showed an increase in tonnage over last year of 53 per cent, the increase in value being 31i per cent. The difference between increased tonnage as compared with the increased value was due to the company having reduced the price of products on several occasions. It was the policy of the company to reduce the price of cement to t\\e. consumer, 1 when and wherever possible. WILSONS COLLIERIES, LTD. The chairman said the coal mine purchased by the company had proved a most valuable asset. During the years 1920 and 1921, for lack of coal alone, the rotary kilns at the Portland plant were shutdown on no less than 238 days out of a possible 730 days. For the two years ended 31st March, 1923. they had j not lost a single day from this cause. The capital of Wilsons Collieries, Ltd.. was £50,000, the additional advances being made for the purpose , of development. The coal company, however, for the past few months had been refunding advances, hence the reduction in this item as compared with last year.

NOT OVER CAPITALISED. Having dealt with the position as shown by the balance-sheet, I now dej she to mention matters in connection I with our plant and operations geneI rally, which I believe will be of interest to shareholders. Sir George Elliot said: "I have heard it mentioned on more than one occasion that it was doubtful if this company could be really successful, because it appeared to be overI capitalised. This, however, is not the : case, as the amount of capital is fully warranted. Xo doubt this view has been taken by critics who are totally unacquainted with the industry, and who probably have no idea of the extensive and massive machinery required in an up-to-date cement manufactory. 1 have no hesitation sin saying that the plant, j machinery, and general assets of the ! company could not to-day be replaced , for anything like £000,000. For inI stance, take a cement works now being erected in Tasmania, which will have a capacity of less than one-third of ours. Already £265,500 lias been raised, and expended, and the company is calling up a further £100,000 to complete the works."' FUTURE OUTLOOK. The chairman stated his belief that the improvement in the cement trade in Xew Zealand would continue fov some time. The revolution in road traffic, duo to the automobile, and to the demand for more rapid transportation, has called for an enduring road. He believed that concrete iiiled the need; indeed that was proved by the steady progress in concrete road construction in every country. About ten years ago, the late Wilsons Portland Cement Company. Limited, interesting itself in concrete roads, laid down a small section near Warkworth. This stands to-day in excellent order, and nothing has been spent on it for repairs. Concrete roads were proving successful in Xew Zealand, and their adoption had been given a great impetus by the courage and foresight of the Auckland City Council and its engineer. Already a great proportion of the main thoroughfares in the city and suburbs are laid down in concrete.