COMPANY AFFAIRS.

Auckland Star, Volume LXV, Issue 147, 23 June 1934, Page 4

COMPANY AFFAIRS.

DOMINION BREWERIES, LTD. NET PROFIT OF £2436 SHOWN. IMPROVEMENT DURING YEAR. The annual accounts of Dominion Breweries, Ltd., for the year ended March 31 last, show a net profit of £2436, compared with a loss of £14,002 ill the previous year. The directors recommend that the profit be applied in reduction of the debit balance in the profit and loss account. If this proposal is approved by shareholders tho debit to be carried forward will be reduced to £6130.

Commenting in their report on the improved position, of the company, the directors state that this was in accordance with their forecast at tho last annual meeting. Previously complaint had been made of the staggering taxation which the brewing industry was called upon to carry. The year under review had brought no reduction. Instead of relief, the company had been faced with additional charges in the shape of sales tax. The new levy cost the company £2262 for the year, apart from sums recovered by it from its customers.

No general increase in community purchasing power is at present discernible, continues the report. While some parts of the Dominion had benefited by the enhanced value of wool, the principal areas served by the company still suffered from the evils of unemployment and general restriction of credit due to the low value of primary products. In the directors' opinion, normality in business would only follow when better provision was made for the absorption of unemployed labour and with the restoration of community purchasing power.

The directors hold to the opinion that the interests of the company will not be prejudiced by delaying the proposals for reduction of capital. With shareholders' approval they propose to defer action until the result of the current year's trading is known.

The retiring directors, Messrs. W. B. Brittain, W. J. P. Hodgkins and L. J. Stevens, are offering themselves for reelection. Mr. Stevens was appointed to the board at the beginning of the year. The directors recommend that the vacant seat on the board should be filled by again appointing Mr. W. J. Colitis, sen., whose health is restored.

The company's paid-up capital still stands at £78,207. The bank overdraft, secured by a debenture of £25,000, is £2038 lower at £19,225, and creditors stand at £9392, against £17,335 a year ago. Assets total £107,008, a reduction of £9790. Stocks are £265 lower at £17,991 and debtors have dropped by £11.851 to £12.747. Goodwill stands at £19.100; brewery land and buildings, £11,405; plant and machinery, £14,247; furniture and fittings, £17,637: hotel leases. £5142; and shares in Auckland Bottle Company. £1000. Gross profit from trading and other sources amounted to £27,854, compared with £18,661 in 1932-33.