COMPANY AFFAIRS.

Auckland Star, Volume LVII, Issue 204, 28 August 1926, Page 6

COMPANY AFFAIRS.

KAIAPOI WOOLLEN COMPANY. SHOWS A SMALL PROFIT. Though still unable to pay a dividend on ordinary shares the directors of this old established concern have been able to furnish a report to the shareholders very much more satisfactory than was the case last year. According to the profit and loss account, the balance transferred from warehouse and manufacturing accounts was £70,773 15/.5, as comparad with only £10.397 In the previous year, and £80,1 SO tn 1923-4. Expenses were reduced to £66,517 (including £1003 depreciation on plant), as against £75,327 in the previous year. The balance of £4274 net profit compares with a loss of £91,449 in the previous year. The net deficit of £55,105 was extinguished last year by writing capital down by 3/ a share, to the amount or £67,500, thus creating reserves of £12,395. It is proposed to pay 6 per cent dividend on preference shares which will absorb £3911 and carry rorward the Balance or £363. The directors' report states that the year's trading conditions have been unfavourable to the New Zealand woollen manufacturing industry. The flood or overseas imports has continued unabated and the unsatisfactory national nnancial position created by the huge excess or imports over exports has adversely affected business. The report also states that adequate provision has been made Tor all wasting assets, and that warehouse stocks have been conservatively valued. The company holds a somewhat larger stock of wool than last sear. Concerning depreciation, the directors remark in the report: "Arter run consideration or the low book values at which our property, buildings, and plant are held, and the Tact that they are thoroughly maintained out of revenue, the usual depreciation has not been considered necessary but adequate provision has been made for all wasting assets." Plant additions foreshadowed last year have now materialised. At the last annual meeting the chairman of directors, Mr. J. H. Blackwell. said that the establishment of worsted plant was "very necessary in the days or eh. iging fashions. In the past two or three years thero has never been such a swing in the trend of fashion." The directors now report: "A complete worsted manufacturing plant has Just been Installed at our Kaiapol mills. This has been a long-felt need, and will materially impro o our manufacturing capacity. Some new machines have also been added at Radley to meet the trend of hosiery requirements." On the property and assets side of the balance-sheet 'additions to plant" appear as £17,312 0/3; and, arter d ducting the £1000 depreciation, property and p.ant stand at £17",658 14/9.

"Stock manufactured, wool, and materials" stand at £295,089 13/6. The comment in tt , report is: "Special attention has been given to the taking or the warehouse stocks, and ample discounting made where necessary, and the stocks stand in our books at conservative values. It might be noted that we hold a somewhat larger stock of wool than last year." The rollowing table gives a comparison or the results or the company's trading In recent years:— Year. Profit & Loss. Dividend. Reserves. per cent. £ Ord. Prer. £ 1920 60,473 prollt 13 0 '— 1921 37,931 protlt 8 7 196,032 1922 89,920 toss S 7 60,674 1923 21,124 loss — G 41,038 .1924 5284pr01H — (5 40,281 1925 .... 91.449 loss — — 1926 4274 proilt — 6 12,395 It will b3 seen from the above table that despite the keen . competition complained or by the directors, the company has made a remarkable recovery from the disastrous record of the previous 12 months. At the same time the fact that a fully capitalised and old established firm engaged. .W_ a basic industry could lose upwards of £200.000 in three years' trading (the years or 1922, 1923 and 1925) Is an indication or the inherent difficulties or commerce when slump follows boom and or the ever present deed ror cautious management of industrial concerns. N.Z. BA' ON CO. REIMBURSING GUARANTORS. At the annual meeting of suppliers or the Tβ Awamutu Co-operative Dairy Company, Mr. C. M. Alexander, chairman, referred to the proposal ■ that South Auckland dairy companies should reimburse former directors of the New Zealand Co-operative Bacon and Meat ranking- Company, who had been called upon to pay in the vicinity or £3000 as a result or the company's failure. Tlfe idea was to recompense them by way or a levy or 2/ per 10001b of butterfat for this and next season.

Members generally agreed that although the individual contributions or suppliers would not amount to much, the ag-gre-gate collected in this manner would greatly relieve the burden or the guarantors, it was finally decided to circularise all suppliers asking ror their individual approval of the proposed method of contributing.

CHECKER TAXICAB CO. At this morning's call of tfte Auckland Stock Exchange the chairman, Mr. Geo. C. Creagh announced that the shares offered to'the public in connection with the notation of the Checker Taxicab Company, Ltd.. had been oversubscribed. He added that It was possible that the surplus or offerings might be met by utilising some portion or the 10,000 shares which bad been set aside to be held in reserve. The prospectus provided fo- a capital or £50.000, in 50,000 shares of £1 each, of which 20.000 were to be offered to the public. 13,000 were to be credited- to the vendor company, 7000 were to be offered to employees, and 10,000 held in reserve. ; KEMPTHORNE, PROSSER AND CO. (Dy Telegraph.—Press Association.) DUNEDIN, Friday. At a meeting: or tbe board of directors of Messrs. Kemptborne, Prosser and Co.'s New Zealand Drug Company. Ltd., held this afternoon, an Interim dividend or 4 J per cent" ror the half-year. ended July 31 was declared. NEW REGISTRATIONS. British Cycles, Limited, importers and dealers in automobiles and cycles; capital £1000. Subscribers David William Barclay Baird, 635 shares; James Harold RatclifTe, 3.00; and John Hermann Fraser, 75.