FURTHER PROGRESS.

Auckland Star, Volume LXX, Issue 152, 30 June 1939, Page 4

FURTHER PROGRESS.

FARMERS' FERTILIZER.

INCREASE IN PROFITS. j DIVIDEND 6 PER CENT. Further marked expansion in business ;in.i an increase in both grogs and net earnings arc features of the annual report issued by the New Zealand Farmers' Fertilizer Company for the year ended May 31. The directors recommend payment of a dividend on ordinary shares at the unchanged rate of 6 per cent. The following summary sets out the position:— £ s. d. L~iJ.i impropriated balance brought forward from last year 20,477 17 2 Add net profit for the year 23.387 7 2 Total profit to be dealt with 00,065 4 4 Less flotation expenses pref. share issue to May 31, li>3« 2,128 18 1 Less <liv. pref. share capital ro May 31, 11)30 2,545 12 4 Less amount added to reserve fund 2,000 0 0 6,674 10 5 Balance for appropriation . 43,390 13 11 Div. of t> p.c. for the year on ordinary share capital .. 15,739 14 0 Leaving to be carried forward 27,670 19 11

Past Years Compared. Details taken from the accounts, together with the figures of previous years, ae as follow: — Gross Net profit, profit. Div. Reserves. Yi'ur. £ p.c. £ *I'.i:'.i> . 99.321 30.975 8 33.007 l!i:il . 54.575 4.649 - 37, 050 1932 . 09.9K6 ir>.7Bs 5 40.342 1933 00.224 13,281 5 40,524 1934 . 74.255 17.718 5 45.113 1935 . Bn.Nl 3 15.537 5} 40.560 193« . 84.168 19.374 5J r.4.. r )33 1037 . 07.878 21.100 0 59.974 l!t3S . l in;, lur, 22.224 6 66,478 1939 . 111,217 23.087 6 69,671 •For 14 months. The financial position may be gauged from the following tallies showing the movement in the chief items .of the balance-sheet: — LIABILITIES. Paid Over- Other liaeapital. draft. bilities. Date. £ £ « 1930 201,905 197.099 41.12(5 1931 261.995 195.652 19.990 1932 261.093 156,218 11.915 1933 261.995 194.886 27,143 1934 261,995 118.802 44.860 1935 261.995 114.205 49.510 l»3fi 261,995 96,610 48.040 1937 261,995 51.532 71.685 1938 261.995 117,022 67.524 1930 351,394 45,302 81,374 ASSETS. Land, buildings Book and plant. Stocks. Debts. Date. £ £ £ 1930 421.498 97,812 38.302 1931 414.879 79.348 21.003 1932 4118.516 44.002 30,082 I!''!.'! 405.730 109.359 22.483 1934 392.982 45,847 45.(Mil 1935 383.300 69.301 30.950 1930 371.0811 55.7H5 48.133 1937 303.070 42.914 54.853 193K 402,1911 75.059 50.520 1939 419,070 74.608 09,712 Increase in Capital. The report of the directors states that considerable capital expenditure was incurred during the year in order to keep pa.ee with the increased demand and it would appear necessary to still further increase output' capacity. The retiring directors, Messrs. A. A. l!oss and H. K. Mackenzie, are nominated for re-election at the annual meeting to be held on August 1. Movements in late«t balance sheet reflect the issue of 5% per cent preference capital made in September of last vear. There were 120.000 shares of £1 each "offered and at balancing date 90.700 had been allotted. The increase in capital has had the effect of _ reducing the bank overdraft by over £71.900. Other liabilities are higher by ±113.850. A year ago the directors' report referred to projected extensions at New Plymouth and the item "land, buildings, machinery and plant" is higher by £16.880. Expanding business is indicated by an increase of £18,892 in book debts. The dividend on ordinary snares if passed by the shareholders will be pnyable on August 15, together with the dividend on preference snares.