FACTS FOR INVESTORS.

Auckland Star, Volume LXX, Issue 165, 15 July 1939, Page 4

FACTS FOR INVESTORS.

GOLDSBROUGH MORT. WIDESPREAD OPERATIONS. FINANCIAL POSITION" STRONG. With a paid capital of £2.-UX).O0O and debenture* totalling over £ I,4«K>.<*.K>, the firm rn G-ol(l.«bimij:li and Lcunpnny occupies a Icadin-/ position in tlio f.irniiny: and life of the Commonwealth. The company operates in all Suites on the mainland, and in addition t<, carrying on the business oi woolbrokers and stock and station asients it owns extensive freehold and leasehold properties in its own risrht. It has been connected with the pastor.il industry inr over !M> years, although the present company was not registered until ISO 3. From time to time its activities have been expanded throush the acquisition of other For instance, in it acquired the wellestablished organisation nl Harrison, Jones ami Devlin, Ltd., of Sydney, and a year later that of Bagot, Shakes and Lewis, Ltd., of Adelaide. More recently it

acquired the business of Pparnon. Kowe, Smith anil Lonipaiiy. oi Melbourne , , str* k anil station agents, .is well as established businesses in various country centres. Within tlif last 12 months lour In .inches were opened in West Australia and .mother in South Australia. The recent leport of the directors stated that 331.791 bales of wool were handle 1 iluriiijj tlie year, command with 257,889 bales tor the previous I"J mnntl;*. A Hatijifactory feature was the iK-.l iv.we of 4Q.22 1 .) in the number of ball's held in stoic ,it balancing date, the total lull iii-iiii: only Jii.lOfi. The i-innpan> s plofits arc iiat in .illy influenced liv yeasnn.il conditions and by th« ruling pi ices for woo! and other pi iiii.ii y products. For many yearn prior to l!>30 regular dividend* ot 15 per cent were paid. Peak eaininjrs were shown in lirj!». the net proHt amounting to £322.237. Since then result.-- have been: y,.;ir Net DivliW-ntls. March profit. Aiiiimnt. :;i. K |..c i. l<l3o L'fi'i.iiii in "(in.onn I'.p:;i 117.47 i; .", rjii. linn 1!!. , ! , . , t1.'i.1".! 1 -'j IHl.nun lima "s.'.ori -Ji c,0.000 vx.ll lus.nm i) 14 j.'inn l»S."i lnl.iss i; 14 4. in hi !!>:!»> 17'.).:ii7 7 m<;.lion i!i:{7 Jin;. c.c,<j s 1 , .* , . , .000 103S 301.343 7 ins.mm 1939 T.Mi.227 4* IuS.OuO Financial Position. The balance-«heet discloses a strong financial position. Reserves and undivided profit* at last balancing date amounted to £1.0i7.03"2. equivalent to approximately 68 per cent of the paid-up capital. PROFITS, ETC. March 31. lf»3S. 1030. t £ Gross profits 77a,639 73»i.^Sj Less t'Xi-s. taxes, Ptc ."581.310 GKi.Or.S Net profit 101.343 1Q0.227 — officers' p r f> v 1ili'iit fund . . . HI.OOO 8.500 Special provision taxalion :;s.oon — Dividends l<lß.ollo los.noii •■J4.il.-,7 t3,7i;7 •Deficit. tSurplisx. KAI.AMK SIIKKT. Fixed assets V r•■ c h nlds ami leaseholds .... I.iMJU.SMi:! 1,01(1.20<i l'lanr, etc "t.4S.S !Hi.43t 1,137,3'J0 1,0:11.700 (ii.oilwill - riirchnse of s;,,ck Imsiiii-sses — IIJ.JJ4 Kloatiiitf «nwt« - Sloeks 10J.01J7 17ii,717 Advance, debtors, etc 4,734,001 4.7.VJ.304 Investments. (IP,,,,sit--. i-ti- oi'j.oK-j a.-iK.ins Bank, cash, etc. .. !t.3SS !»,oi:j (5,310,")L'S 1;, H>5,1»70 Capital mid resen - es — Oril. shares 2,400,000 'J. t00.000 Reserves, etc 1,iU3.304 1.ii47.0:;2 4,043,304 4,U+7,032 Liabilities — D'-bfUWiff stoek and interest ... 1.433.47." 1.43."{,:i03 f'reiliturs etc. .. . .S~i J . 1 ."i 1 i<3'J,4iH; Taxation provision 31.814 Dividends (j1i,4.~>0 e..j1.j.."-'S ti.403,070 Depreciation 1<1.730 30,011 PERCEXTAGE.S. Dividends paid 7 4J Profits as dividend 57.8 Sd.S Keserves le ;g goodwill to capital .. . . 05.47 07.!J."i Profit to capital 7.1)7 0 Almost three-fourths of the total assets valuation is represented by sundry ilplitore and advances on «toek ami station propertie.-*, etc., which amount to X4,7j2,:504. "Markets Improve." Since the foregoing remarks were made the wool market liae made substantial improvement, chiefly as a result of armament requirement*. This has been promptly noted by the market and the price of the shares has risen accordingly. At the end of last month, with a fid dividend just due, best buyers stopped bidding at -n a. whereas the shares changed hands last week at 27, (i and 28/4V6.

FUTURE OUTLOOK. I THE CHAIRMAN'S VIEWS. Speaking at the last annual meeting in Melbourne, the chairman of directors, ijr. K. M. Niall, said the reduction in the net profit arose from causes beyond the control of the company. One of these, drought, had largely disappeared, but as regards the other, low wool prices, it was difficult to find solid grounds for optimism as to the immediate future prospects. j "Being growers as well as woolbrokers, i we have suffered in both directions from ' the extremely low prices ruling," said the | chairman. "A consolation I can offer j shareholders as an offset to the unsatisfactory trading results is that those are ! certainly not due to any decline in turnover. In this respect the company lias considerably more than held its own. ; "Since the depression there hart been j a steady increase in internal conts and to-day tlio-ip are on a par with those of pre-depression times. On the other hand, the price of wool is 3"Vfe per cent below the value of those days. There is a serious adverse combination in tlie pastoral budget, and quite outside the control of the grower. j "The Government of Queensland is so impressed by the difficulties with ■which the industry is beset that it has ordered an investigation to be made by Mr. W. L. Payne, a man of wide experience in '

pastoral affairs. It is to be hoped that other Governments will follow this example and that, as a result, some form of aid will be afforded wool producers. "Our company anj other financial houses have consistently demonstrated their desire to assist growers by extending to them their fullest support, but our ability to finance to-day's requirements of the industry has its limitations. We therefore invite the close attention of all Governments to the representations that have already been made for a rectification of the present unsatisfactory poeition. "The credit expansion of the last few I years liati had its effect on the .pastoral I industry, as it has doubtless augmented I the upward trend of internal costs. As it I appears likely that this policy will lie continued, we submit that an improved relation between costs aJid income is necessary for its healthy functioning. "If these internal maliere are attended to. ami I have every confidence that they will lip, I have no hesitation in expressing my unshaken belief that the wool industry will rehabilitate itself.' , concluded the chairman. '"Given freedom from major international disturbances, there will be a return of more prosperous conditions in the pastoral industry of Australia."