FACTS FOR INVESTORS.

Auckland Star, Volume LXIV, Issue 74, 29 March 1933, Page 4

FACTS FOR INVESTORS.

KEMPTHORNE, PROSSER. AFTER 54 YEARS. STILL PAYING DIVIDENDS. That profite can still be made by wellmanaged manufacturing concerns in this Dominion is exemplified by the latest accounts issued by the old-established firm, Kempthome, Prosser and Co.'s N.Z. Drug Co., which held its 54th annual meeting in Dunedin yesterday. Ine company has four fertiliser works also four wholesale drug stores in the chief Dominion centres, and plays a highly important part in the country s commerce. Results over a period of years are epitomised in the following table:— Paid-up Gross Not Div. Jan. Capital. Reserves. Profit. Profit, p.e. £ £ £ £ 1920 . 334,192 100,103 139,909 39,811 10 1925 . 400,000 119,253 147,357 47,372 10 1926 . 448,044 159,703 101,320 54,820 10 1927 . 511,095 107,538 163,725 57,134 10 1928 . 529,639 165.542 177,159 56,642 10 1929 . 529,866 184,877 199.31S 72,810 10 1930 . 583,000 141,992 202,652 71,900 10 1931 . 583,000 143.460 177,983 62,769 10 1932 . 583,000 146,287 145,369 49,052 7| 1933 . 083,000 147,187 131.95S 47,126 7i Gross profits show a further decline, but expenses have also been curtailed, being over £11,000 less, and as a consequence net returns register but a slight reduction. To pay last year's rate of dividend, namely 7% per cent, requires £43,725, so that after this distribution has been provided for there is still something over tc add to the already substantial reserves. In 1929 the company celebrated the attainment of its jubilee year by presenting shareholders with £53,000 worth of fully-paid shares, the amount being* taken from reserves, and at the annual meeting, held in Dunedin yesterday, the chairman of directors reminded shareholders that they were about to receive their one-hundredth dividend. The following table indicates the movements in the chief balance-sheet items in recent years:— LIABILITIES. 1931. 1932. 1933. £ £ £ Capital 583,000 583,000 583.00 C General reserve 110,000 110,000 110.00 C Reserve on book debts 5,300 5,360 5.36 C Sundry creds. . 166,424 157,326 129,267 Profit and loss account 63,165 56,747 57,647 ASSETS. 1931. 1932. 1933. £ £ £ Stocks 302.10G 295,222 304,45 C Land, buildings, plant, etc. . . 452,305 431,767 431,94 i Sundry debtors 135,514 146,015 133,82? Cash In bank .. 38,025 37,179 25,633 ■ Total assets . 927,950 012,434 885,27 C Sundry creditors have been substantially reduced, the difference being over £30,000. The present figure of £129,000 compares with £252,000 in 1930. Stocks are £9000 higher, the cash balance is less by £12,000, and sundry debtors are £12,000 lower. The scrip is very popular with investors, and the £2 shares have sold lately at £3 2/, compared with ££ 6/ a year ago. THE CHAIRMAN'S STATEMENT. DUNEDIN, this day. Mr. W. F. Edmond, chairman of directors, at the annual meeting of the New Zealand Drug Company, said: "We have traded conservatively during the whole period, and have endeavoured by all possible economies to bridge the gap between a somewhat smaller turnover and general expenses, so as to bring the latter into good ratio with the former. In common with other countries we cannot look for better, conditions in New Zealand until the price level for exports is improved. When this will eventuate it is impossible to suggest, but much is hoped for as a result of the forthcoming Economic Conference at Washington. ' Importers have had the added burden placed on them of a further 15 per cent advance in London exchange. This must affect us adversely during the present year, and in addition we have now the sales tax of 5 per cent, which does not facilitate buoyancy in business. "Stocks of all descriptions have come to ha'nd regularly throughout the year. Turnover at the company's fertiliser works and drug warehouses has been up to expectations. I can hardly say the directors look forward with confidence to the future, but I do say that every effort will be made to maintain business, and the present position of this company."