NEWTON KING, LTD.

Auckland Star, Volume LX, Issue 172, 23 July 1929, Page 4

NEWTON KING, LTD.

REDUCTION OF CAPITAL. TO WRITE OFF LOSSES. LARGE SUMS INVOLVED. The directors of Newton King, Ltd., have brought down proposals for consideration of shareholders on the 31st instant to reduce the company's called-up capital from £374,690 to £205,029. This is to be done by:— (a) Cancelling paid-up capital which is unrepresented by available assets to the extent of 17/ in respect of each of the 200,195 ordinary shares which have been issued, and are now outstanding, and by reducing the nominal amount of such ordinary shares to 3/ per share. lb) Cancelling 49,255 of the existing ordinary shares which have not been taken or agreed to be taken by any person. (c). Cancelling 550 of the existing ordinary shares which have been issued and forfeited. The directors also propose that' all arrears of the cumulative preferential dividend, whether declared or not, on the J 74,500 issued preference shares accrued up to April 30, 1929, shall be cancelled and extinguished. In their annual report the directors state that at the last annual meeting they intimated that in order to place the affairs of the company on a stable basis a reduction of the capitalisation of the company was inevitable, and they now advise to that end they engaged Messrs. Best and Wilkinson, public accountants, of Christehurch, to undertake the investigation, after Messrs. Clarke, Menzies, Griffin and Ross, of Wellington, found themselves unable, to carry out the work. Their work has now been completed, and their conclusions and recommendations are embodied in a separate report. The auditors' report states that tne losses have been due to deflation in values due to causes beyond the control of the directors and management. They recommend the writing down of valises by £170.166. The amount due in dividends which, preference shareholders are asked to forego totals £34,027. £23,424 net profits were earned during the past year. The Balance-sheet •Following are the principal items in the balance-sheet:— LIABILITIES.

£ Paid-up capital 374,688 Mortgages im'akZ Bank of New Zealand 165 -^3 Bills payable -*|? Sundry creditors £s'2«:> Newton King Estate Account. *s,7t>_ Balance at credit of Profit and Loss Appropriation Account 4i,u Contingent liabilities—Bills under ._ onSnS v.'.'.':;.'.'.'.::::::::::: ?ml Arrears of dividend on preference shares I. 34,02. ASSETS. Freehold iind leasehold properties, building*! .' 113,977 Machinery, plant 27,018 I Goodwill 30,000 I Slocks (17,293 , Sundry debtors on open accounts . . 439,918 Bllla receivable 11,372 The Future Hopeful. <«Ji n re P° rt the auditors say:— Shareholders will naturally be concerned | as to what are the prospects for the future. 1 We have carefully studied the past history Snt f„5? m ?. any a " d are from present indicating that there is every reason befoS^S if tbe ? r r sal * s pS3 ucroie jou are. carried the company has a Prosperous future ahead of it. 1. £~ .holders can look forward with confidence 1 to receiving dividends yearly, unless Sp I thing unforeseen occurs "