SUCCESSFUL YEAR.

Auckland Star, Volume LXVI, Issue 180, 1 August 1935, Page 9

SUCCESSFUL YEAR.

FARMERS , FERTILISER. DIVIDEND 5* PER CENT. CHAIRMAN'S ANNUAL ADDRESS The annual general meeting of shareholders of the New Zealand Farmers' Fertiliser Company, Ltd., was held in the Auckland Chamber of Commerce this morning, the chairman of directors, Mr. A. A. Ross, presiding. Moving the adoption of the report and balance-sheet, Mr. Ross said:—» "This company has not yet attained to its full majority in years, but this is the nineteenth annual meeting, which is a long enough period for it to have become well and firmly established, and [ think that the figures of the present balance-sheet show that this position has been fully attained. Our principal article cl manufacture is a commodity which is essential for the maintenance of primary production. It seems reasonably certain that, with the further development of land and its more intensive cultivation, there will be an increasing demand for fertilisers, and I have no doubt that our company will obtain its share of tills business. It has been our aim to give our clients the fullest satisfaction with regard to our products and on this point it is gratifying to know that in a recent report to the directors it was disclosed that for a full two years there had not been a single complains either as regards quality or delivery. This, you will agree, speaks volumes foi the care and efficiency of those responsible for this result. Business Maintained. "With regard to the year's business, I may say that the volume has been fully maintained, and although we have been working on a smaller margin the financial results as shown by the figures submitted are quite satisfactory. In the profit and loss account the total credits at £80,812 are up by £05f>8. The total debits at £01,976, which includes depreciation on the full scale, income tax and all the usual overhead charges, are lip by £5440, leaving a net profit of £18,530, which is an increase on last year of £111 S. During the year further storage accommodation for superphosphate has been provided at the New Plymouth works, involving considerable capital expenditure. This was necessary in order that tho plant might be kept running more continuously and better provide for the peak demand.

"In the balance-sheet of assets and liabilities the item land, buildings, plant, etc., at £353,299 12/4 is down by £9082 10/11, the amount provided for depreciation having balanced the cost of the additions phis the reduction. The stocks, which are always a fluctuating item, are up by £23,514, and have been taken in on the usual conservative basis. The item sundry debtors at £36,958 is down by £8043, which, as business has not decreased, must be accounted for by more prompt payments. It may also be mentioned in connection with this item that bad debts continue to be a negligible quantity. Overdraft Reduced. "On the liabilities side the reserve fund is increased by £4000 and the item sundry creditors at £23,612 is up by £3739, which i? just a normal fluctuation. The bank overdraft has been reduced by £4i597. We expect this item, in the absence of any substantial new developments, to be steadily reduced to the vanishing point within the next few years, but only a small reduction was effected on this occasion owing to the increase in stocks. Still, it will be admitted that we arc moving steadily towards our objective when it is remembered that in two years this item has been reduced by £80,681, from £194,85-> in 1933 to £114,204 in the" present balance-sheet.

"The net result is that after making full provision for all contingencies we have a balance to be dealt with of £39,979 5/5. We have added £4000 to the reserve fund, and we recommend a dividend of 5J per cent, these two items absorbing £18,409 14/6, and leaving a •balance to carry forward of £21,569 10/11. This sum added to the reserve fund makos the total undistributed profits £49.569 10/11. which is equal to approximately 3/9 for each of our £1 shares issued. Last year we had 3/5, so that tlie fund has boon increased by 4d on each £1 share. "Some additions to plant and buildings are being made this year at the Te" Papapa works, as it has become necessary to provide improved facilities for handling and storing sulphur. Subsidiary Lines. "With regard to subsidiary lines manufactured by the company. I am glad to be able to inform you that theso arc all showing an increased turnover and fullv justifying their introduction. In the'ease of Milestone we have the entire trade of New Zealand. Our product is fullv up to the highest standard, and importations have ceased. "Your directors have always endeavoured to keep our operations fully up to date, but in the last few years many changes have come about, and so that

we may keep abreast of tlie times it i was decided to send our managing director, Mr. J. Wilson, for a tour abroad. Accordingly, he left in March, and we hope to see him back at his post to- . wards the end of the year. He will no doubt be able to view many works of a similar nature besides having opportunities of gleaning information in regard to other matters which may prove of value to the company. Mr. G. West, who is the chief accountant, and has been with the company almost since its * inception, is in charge of affairs in Mr. Wilson's absence.

"As regards prospects in the immediate future, one hesitates to express any' definite opinion, as international relationships arc still very uncertain, but so far as trade and industry are concerned there is undoubtedly a general improvement. The. farming industry, however, upon which we all depend, is still faced with low prices for its main products, but they have been lower than they are to-day, and there are indications of a decided upward tendency in the market for both wool and butter, two of our principal articles of export. We can only hope that these indications will lead to a substantial and lasting improvement.

"Once agnin I have pleasure in complimenting my fellow directors upon the careful and constant attention they have given to their duties, and assure you that the interests of the company's shareholders are being fully safeguarded." After reading the auditor's certificate the chairman moved the adoption of the report and balance-sheet. Mr. F. E. Dobson seconded the chairman*6 motion. Store at New Plymouth. "Referring to the building of an additional large store at Xew Plymouth, mentioned in the chairman's report, I have received a letter from the works manager there stating that had he not had that store he would have been unable to fulfil orders," remarked Mr. S. Irwin Crookefl. "There has been such a big change in the use of mixed fertiliser's that he could not have carried on without it. The company is to be congratulated on having built at the right time."

Mr. Ross commented that the company's business at Xew Plymouth during "the past three or four months had been phenomenal. Tho report and balance-sheet were then adopted. Mr. M. Harding, of Auckland, and Mr. G. L. Marshall, of Marton, were elected unopposed as directors, and Mr. J. A. Duncan was reappointed auditor.

Proposing a vote of thanks to the directors, manager and staff, Mr. Wilkie said that, considering the difficult time the country was parsing through, it was a pleasure to attend a meeting where such a report and balance-sheet were produced. The shareholders would be glad to see that the bank overdraft had been reduced. Such a result could only have been achieved by strict attention to the company's business by the directors, manager and staff. The company had a particularly good and loyal staff, and he hoped that when the overdraft had been further reduced the directors would be able to recompense tho staff with something more substantial than a vote of thanks. The motion was seconded by Mr. Shalders. "We have, indeed, a splendid and a loyal staff," remarked Mr. S. Irwin Crookes. "Every member knows his or her job thoroughly." Mr. Crookes remarked that during a recent illness of Mr. West he had relieved him, and had come to know the staff intimately. Mr. G. West replied on behalf of the staff. "We are going to have another successful year, I think." said Mr. Ross, replying on behalf of the directors. "Conditions are i:ot as good as they might be, but they are improving. Everything shows that we Itave got past the lowest point of the depression, and this company's business is no exception."