RENOWN COLLIERIES.

Auckland Star, Volume LXII, Issue 215, 11 September 1931, Page 9

RENOWN COLLIERIES.

ANNUAL MEETING

NET PROFIT FOE, TEAK, £3604.

The sixth annual meeting of- the Renown Collieries, Limited, was held this afternoon in the Chamber of Commerce. The chairman of directors, Mr. H. R. Mackenzie, in moving the adoption of the report (already published), congratulated shareholders upon a successful year, bearing in mind the many difficulties faced in the coal war, lowering of prices and the economic position. After making, the usual liberal allowance for depreciation, the net profit for the year amounted to £3604, out of which it is necessary for the directors to reserve £1025 to meet proposed increased income tax, which this year, as shareholders were aware, would carry a supertax of 33 1-3 per cent. The profit for the year was considerably ess than that earned last year, due entirely to the two causes mentioned above. Prices had been stabilised at rates somewhat more than 10 per cent below those obtaining before the rate war started, thus allowing for the 10 per cent reduction received in wages,, and the five Walkato companies had reached a better understanding than ever before. The result would snow in better and more profitable working in the future, and shareholders could be assured that their patience would be rewarded in the shape of dividends before very long, if the conditions agreed upon were carried out by all concerned. The reduced spending power of the public had resulted in a much lessened demand, and also a request for cheaper grades produced. Cheap firewood had also greatly reduced sales of coal. Although most of the Waikatq minea had suffered reduced outputs during the past twelve months, he was pleased to say that the Renown Company's sales increased from 76,283 tons to 89,424 tons. The sum of £4246 was written off for depreciation and ample provision made for bad debts, which, owing to dose watching, were not heavy. Royalties amounted to £4611, while electric power cost J llß2. The year's accounts compared most favourably with those presented at last annual meeting. Sundry creditors were £16,302, against £21,358. Sundry debtors certainly showed a decrease with £8202. against £11,765, but actually more coal was represented in this year's amount, the decrease being due to lower prices ruling. It would be noticed also for the same reason that although sales increased over 13,000 tons, the gross profit earned was £3000 less than last year. Had the same average price been realised for the product a fair profit would have been earned, enabling a dividend to be paid.. , . <• x The mine had been maintained, in nrstclass order, and was now. producing daily 700 tons, which eould be. increased to 1000 tons when necessity arrived. Ihe, electors were very pleased and satisfied with the splendid work done.by the secretary, 'mine. aMmase?-*?**^*^^^ -