SKELTON, FROSTICK, AND COMPANY, LTD.

Press, Volume LXVI, Issue 20036, 18 September 1930, Page 12

SKELTON, FROSTICK, AND COMPANY, LTD.

ANNUAL REPORT AND BALANCESHEET. The balance-sheet and profit and loss account of Skelton, Trostick and Co., Ltd., for the year ending July 31st, 1930, as presented by the directors, is as follows: —•

The profit and loss account shows an adverse balance of £9477 ]6s lid, which includes the loss of £3877 58' 6d brought forward from last year. Against this there remains an amount of £3343 5s standing to the credit of "stock depreciation and bad debts contingencies account."

The trade expenses were £7OO less, and bad debts £4OO less than the previous year. Interest and discount account £7OO higher, and the repairs and depreciation -practically the same.

The volume of business was less than the previous year, due to the depression existing.

The conditions have been the worst known to the company, as in addition to the general financial stringency, the importation of footwear has continued unabated, and price-cutting has been excessively indulged in by some manufacturers in a frantic effort to secure business. It is felt that the additional duty recently plaoed upon footwear, although small, will, taken in conjunction with the high rate of bank exchange ruling at present, tend to materially reduce the importation and stimulate the demand tor Dominion-made footwear, and that the ensuing year's trade will show an improvement; but notwithstanding this view, your directors realise that extensive reorganisation is necessary to meet the circumstances existing in the Dominion at present. The company's freehold is undoubtedly a very fine holding, which is increasing in value, and when tlio present depression passes it should be possible to dispose of the property at a considerable advance upon the figure at which it appears in the balance-sheet, and to secure less valuable premises further removed from the centre of the Citv.

After very careful consideration, the following reorganisation has been decided upon:— Wellington branch to be closed—This would result in a considerable saving, and a re-arrangement of travellers' itineraries would ensure no loss of business, and the disposal of the stock would relieve the financial position.

Indent Department —As a separate unit to be discontinued the ordinary salesmen to carry the samples of imported goods which do not conflict with our own productions, such as rubbers, felt slippers, and children's goods. These arrangements will also effect a substantial reduction of expenses with little, if any, diminution' of business. . Stocks—During the year the stocks were reduced by between £4OOO and £SOOO, and a more extensive reduction would have been achieved had it not been for the unusually dry winter. A determined effort is being made, and it is confidently expected that tlm current year will see the stock down to a satisfactory figure. In addition to the debit of £9177 IGs Jld standing to the Profit and Loss Account, there is an accumulation of dividends due to preference shareholders of over £SOOO.

Your Directors feel that in view of the adverse state of the footwear manufacturing Industry, it is essential that these formidable items be removed in order to enhance the possibility of the resumption of successful trading, and it is therefore recommended that "Tho ordinary capital of the company, of £30,362 10s, representing 12,145 fully paid shares of £2 10s eacb, be written down by £1 10s por share, thereby reducing these shares to £1 each." To give effect-to the writing-down of the ordinary capital, a special meeting in conformity with the Companies' Act is necessary. Your directors also recommend thai. "Tho preference shareholders bo asked to forgo dividends to March 31st, 1931." In connexion with the latter proposal, it originated from some of the larger" preference shareholders, and others approached have signified their approval, and stated their willingness to forgo the interest, in order to place tho company in a more hopeful position. A simple deed is being prepared for signature, and will bo circulated to the preference shareholders in due course. Your directors feel that both ordinary and preference shareholders will realise that it is in their best interests to agree to the proposals. The plant'and, property have been kept in a state "of efficiency out of revenue. The adverse conditions at present existing in the Dominion are well known to all shareholders, who may rest assured that everything possible is being done to conserve their interests. Mr Jas. A. Frostick.--We regret to have to report that early in June, Mr Frostick became seriously ill, and although he has recovered somewhat, it ha 9 not been possible for him to act in tho capacity of chairman of the Board, and therefore Mr B. A. Frostick has been appointed meanwhile. Under.the articles of association,■ Mr S. Jackmau is the director, and offers himself for re-election. Messrs Wm. Jameson and Son offer themselves for re-election as auditors.

JERSEY BULL SALE. (press association TELEGRAM.'> HAMILTON, Soptember 17. The National Jersey bull sale opened today. The 71 head sold averaged 44gns. Top price, 270gns, was paid for \Vaipiko Love Boy. sold on account of C. G. Dermor (I'.eildin*) by A. Crowther, Matamata. Waipiko Caravel, on account of the same vendor, was purchased by J. B. Aickin, of Pukekohe for •J3sens, while 170gns was paid for Meadow - vale Oxford Sultan by C. Stevens (Whangarei). 'S. Irwin Orookes (Wnangarei) secured the four-year-old Santa Rosa Golden Chimes for 135gns. War Bride Prince, on account of H. Salway (Bell Block), changed hands at 102gns, tho purchaser being li. J. Botham. of Te Aroha. The senior championship of the show was won by J. A. Mitchell's Santa Rosa Golden Ohimes. C. G. C. Dernier' 6 Waipiko Love Boy won the two-year-old championship. SHARE QUOTATIONS. (USIXE9 PRESS ASSOCIATION—BT EI2CVXIO TBLSORAPH-COPYRIGHT.) LONDON, September 16. Included in the quotations for ehareß wer* the following- gept]G £ s. d. £ s. d. Bank of Australia, .. H W 6 10 17 6 Bank of N.B.W. .. 34 10 0 34 10 0 Union Bank of Aust. .. 9 2 0 817 6 National Bank of. N.Z. 5 10 o 7 b Bank o! New Zealand. 4 per cents. .. 98 0 O 94 0 0 Bank of New Zealand. ! shareu .. .. 215 3 214 0 N.Z Loan and Mercantile, 4 per oente. .. 69 10 0 68 10 0 N.Z. Loin and Mercantile, ordinary shares 94 0 0 94 0 0 PROPERTY AUCTION. H. C. Smith, of the City Market, sold by Vublio auction, on account of Mr W. Brown, 20 perches and two rooms, situated 68 Barbour street, to ■> client, for £lO5.