STRONG POSITION.

Auckland Star, Volume LXXI, Issue 150, 26 June 1940, Page 5

STRONG POSITION.

FARMERS , TRADING.

ASSISTING WAR EFFORT.

TURNOVER REACHES RECORD

"There should be no need for me to reiterate what is being said and felt by every public-spirited man and woman in this country, that New Zealand's first duty is to assist by every means in her power, and by the full measure of her resources, to win the war and r.ave civilisation," declared Mr. H. E. Worsp, chairman of directors of the Farmers' Trading Company, Ltd., at the annual general meeting of shareholders in the Chamber of Commerce this morning. "This to, the paramount duty of every individual and every business," he said, "and the company -will most certainly do its duty in that direction and as far as lies in its power will help by every possible means in the war effort." The directors had assisted the Government with a war loan of £25,000; the company's factories were busily engaged in war work, and the Government was certain of full assistance in that respect. Between 60 and 70 of the staff had volunteered for overseas service and a like number for home defence. At such a time the directors realised the importance of supporting local industries and intensifying efforts more and more to sell New Zealand-made good*. Policy Appreciated. "It is obvious from the balance-sheet that the resources of the company have been consolidated during the year," continued Mr. Worsp, "and we are in a very strong financial position. Our turnover has reached record figures, and

the steady support from shareholders I and the public generally proves that our policy of low prices consistent with good quality i£ appreciated, and that we are, as we advertise ourselves to-be, the guardians of the public purse.

"The season now ending in the Auckland Province for priraary production has been an excellent one —in some instances a record one. This should be a great help to our country branches, which usually account for aboat half our business." Mr. Worsp stated that the security value of each £1 of share capital had risen to £7 12/9 for A preference; £5 19/11 for B and C preference; and £1 8/8 for ordinary shares. The assets per £1 of liability had increased from 43/3 in 1935 to 68/ as at March 31 last, he added. Properties shown in the balancesheet were £3107 higher than in 1939. and that was accounted for by general expansion of business and an adherence to the policy of modernising aifd keeping up to date properties at branches and head office. That this expenditure was justified was proved by the increase in turnover that had followed all improvements, and by the greater satisfaction felt by customers in dealing at a store equipped with modern facilities. Cash in the bank, on deposit, and in hand, totalled £218,747, compared with £126,289 ]aet year—an increase of £92,458. Prospects For Future. "It is quite impossible to predict what the future holds in store," commented Mr. Worsp, "or to forecast what effect war conditions may have on the company's activities, but the directors are hopeful that next year's balancesheet, although a record one like this cannot be expected, will at any rate be satisfactory. "Nothing is more certain than that at a time like the present, difficulties must arise," concluded Mr. Worsp. "11 they cannot 'be surmounted they will have to be disregarded, and we will have to carry on to the best of our ability. We certainly have this great advantage— we are entering the crisis in a very strong position, and, although I can make no promises, you can rely on the director* and the management using their utmost endeavours to see that we emerge from it in a similar position." The report and balance-sheet, which have previously been reviewed in the "Auckland Star" were adopted. The retiring directors, Messrs. A. X. Macky, R. H. Ockleston and A. S. Sutherland, were re-elected.