FACTS FOR INVESTORS.

Auckland Star, Volume LXIII, Issue 290, 7 December 1932, Page 4

FACTS FOR INVESTORS.

WOOLWORTHS (N.Z.), LTD. SUCCESSFUL OPERATIONS. Woolworths (N.Z.), Ltd., was formed in 1929 to conduct easii retail stores on the lines adopted by its parents, Woohvorte, Ltd., whose headquarters are in Sydney. It may be assumed that the Australian organisation etiii holds a large interest, [or, although headquarters are in Wellington tlie annual meetings of shareholdeie are held in Sydney. During the hist year of operations lour stores were established, two in Auckland and one each in Wellington and Christchurch. The capital at that time stood at £54,450, in ordinary £1 shares. The business expanded rapidly, and to provide the fresh funds necessary the directors secured authority to increase the capital to £150.000 in 100,000 ordinary shares, and 50,000 cumulative pref. shares. The latter only were offered for public subscription. As they were to carry a dividend of 9 per cent, and the company had paid 20 per cent as dividend to ordinary shareholders for the first, year, there was no difficulty in placing them. Detail* from the profit and loss account for the three years of the company s jperatione, have been as follows: — Xct Dividend, profit. Pref. Ord. j: p.c. pc. 1030 15.503 — 20 1031 10.240 9 li> 1932 30,706 9 20 Chief items from the last three balancesheets are shown below:— LIABILITIES. 1030. 1031. 1932. £ £ £ Paid capital .... 54.450 84,4550 104,450 General reserve . . — 4.61b 10,dJ4 Creditors and proLxation ... f .°; 53,296 42,987 51,700 ASSETS. 1930. 1931. 1932. ££ ' £ LeaselVd property 14,971 20.912 14,005 Fixtures, plan.. stocks;;;;;;;... 05,931 81,037 01,084 Sundry debtors & oonn prepayments .. 1,710 ~414 28,015 B ™.* 10,600 10,606 8,000 Total assets .... 112,580 146,265 193,456 The particulars given in the balancesheet suggest a conservative valuation ot assets. Property appears to have been well written down, and establishment charges have been lessened by £2000. Paid capital has increased by £20,000. The extra funds seem to have beeu well utilised, for, While disclosed profits have increased substantially, stocks are higher by £10,000, and the cash balance by Tlie shares are firmly held, and the ordinaries are rarely offered. The preference issue is quoted-regularly, aiul at present there are b-uyei* prepared to fiive 11 7/6 The last local sale was £1 8/. which shows a return to the present investor of £6 8/6 per cent on outlay.