MILNE AND CHOYCE, LTD.

Auckland Star, Volume LX, Issue 221, 18 September 1929, Page 4

MILNE AND CHOYCE, LTD.

THE FINANCIAL POSITION

TO-DAY'S ANNUAL MEETING.

RECORD SALES IN PAST YEAR

DIVIDEND OF 8 PER CENT

STAFF BONUS £4000

"Notwithstanding the fact that tins past year has been a trying one, the turnover of Milne and Choyce, Ltd., constituted a new high record in the firm's history." This was the statement made by bir Geo • Elliot, chairman of directors, in his address at to-day's annual meeting ot shareholders. Sir George took the opportunity to remind his hearers that theirs was the oldest established soft goods business in Auckland. For the first year 7% per cent dividend was paid to snareholders, the next year and ever since 8 per cent per annum. £225,000 had been paid in dividends. This was a remarkable record of consistent earning, said Sir keorge with a smile. It was often alleged that drapers were robbers, but the dividend rate of 8 per cent was not an unreasonable return. In a high-class business such as theirs percentage profits did not rule Tie chairman paid a high tribute to the company's staff, which, he said, numbered 665 and constituted, he convinced, the most enthusiastic set 0i employees in New Zealand. Explaining the bonus Bystem, to which the company had this year donated £4000, the speaker said the amounts allocated to the different employees were placed to their credit and were available when special necessity arose. The sum varied with different individuals, but several had some hundreds of pounds standing to their credit. The chairman said the buyers of the company had visited every important manufacturing country .in ■ the world, including the Far East, during the period under review, and he attributed a large measure of the company's success to this enterprising policy. -...._,. T)1 , Sir George Elliot and Mr. Chas. Rhodes were re-elected directors, and the auditors, Messrs. Morris, Duncan and Gyllics, were re-appointed. Qn the motion of Mr. Stuart Milne, the remuneration of directors was increased by £250 per annum. A resolution of thanks and confidence in the directors and management was carried. In responding on behalf of the staff, Mr. Milno said he appreciated this recognition, for he felt that their establishment was largely judged by the character and the demeanour: of their employees.

'the following items indicate the trend pf .business in recent years:— TROFIT AND. LOSS. ACCOUNT. . 1927. 1928. 1929. . £. £ £ '//•oss profits . 146,301 152.779 103,360 'Net profits .. 21,479 23,901 . 24,330 •fivoensM ..... 124,882 128,878 139,024 S? forward .' 30 868 34,708 39,104 car. lorwaru Per ' cent> Per cent . p er cen t. Dividend .... 8 8 8 , The following tables show the chief movements in the balance-sheet during the last three years^— LIABILITIES. •'•.■. „ vr ,.. 19271-192.8... 1929. ££ ' £ Paid . capital . 250,000 250,000 250,000 B debentures . 22,000 22,000 _ — Other liabilities 120,559 96,870 122,989 , ASSETS. 1927. 1928. 1929. £ £ £ ..144,308 122,293 121,019 K&bVildingS 168'|l0 169 094 109,984 Plant ft figures 93,208 81 081 72,108 Sutdry debtors: 311220 34,735 40,388 Comments. Amongst notable features in the latest balance-sheet is the issue of £22,000 oi debentures, which matured during the year has been paid off. Despite this cancellation outside liabilities are up nearly £5000, but this amount is, more than oilset on the other side of the ledger. Thus there is £12,000 more in the bank. Turnover has obviously increased as indicated, by the substantial rise in gross profits, and an increase in sundry debtors is a natural consequence. The carry forward has been increased over £4000. Staff bonus, which was £2500 in 192627 and £3500 last year, has been increased to £4000. Milne and Choyce's scrip stands high on the market, and deservedly so, for the company's finances are thoroughly sound and the investing public has full confidence in the management. 'The margin of assets over outside,.liabilities shows approximately £14/ for every £1 of shareholders' funds. Present market valuation (£1 6/9) gives a return on outlay of just under 6 per cent.