PROFITS HIGHER.

Auckland Star, Volume LXXI, Issue 158, 5 July 1940, Page 4

PROFITS HIGHER.

FARMERS' FERTILIZER.

£26,269 AGAINST £23,587. COMPANY INCREASES CAPITAL. A further increase in the net proSt ie shown in tlio annual accounts of the Xew Zealand Farmers' Fertilizer Company, Limited, for the year ended May 31, 1940. The amount tlii.s year is £26,26!), compared with £2:i.jS7 in 1939 and £22,224 in 1038. The dividend i.-i unchanged at 6 per cent.

1 lie annual report shows that with tiie addition to the net profit of £27.071, tiie unappropriated balance from last year, total pronto to be dealt with ate £53,940. Of this, expenses amount to £7373. leaving a balance tor appropriation of £46,366. Tin- payment of the dividend will i-ci]u.re £IJ,"-20, leaving £30,647 to be .airicd forward.

The report «taten that social eccutity taxes and national security taxes will be met by the company. Depreciation has been provided for in full, while stocks have been carefully checked and valued on a conservative b»sis.

Jt will be seen tliat the overdraft item ha» clinappearetl, being largely accouated for by the increase in capital, thus giving the company frieater scope for expansion. That the business i« expanding can be seen from a succes.wion of annual profit mcreaaes-from £21.160 in 1937 to £26,209 now, while the advance in the item of sundry debtors— £69,713 to £101,567—aii0 point* in the same direction. Stock* are aleo considerably larger, the valuation increasing from £74.608 to £148,117. Thie in particularly denirable when the future i* apt to be uncertain. Accounts are balanced thie year at £665.697, againet £563,461 laet year. Capital shows an advance from £351,335 to £411,605. Movements in the as between thie year anil laet are ae follow: — LIABILITIES. Thie I.aet year. year. £ £ Capital 411.603 351,395 Reserves 4"J,000 42,000 Open accounts f11.853 40.841 Creditors 71.737 irj.se , - . Overdraft — 43,302 Balance from I', and L. appn 46.366 13,391 ASSETS. Land, buildings, plant, etc 413,16!) 419,071 Stocks 148,117 74,608 Debtors 101,567 60,713 Cash 2,843 70