Page 17 Advertisements Column 1

Press, Volume LXXII, Issue 21809, 15 June 1936, Page 17

copy of this Prospectus was filed with the Registrar of Companies at Christchurch on the 4th of June, 1936. Passed by the Christchurch Stock Exchange on the 2nd of June, 1936. PROSPECTUS OF TUDOR HOSERY LIMITED (Incorporated under The Companies Act, 1933)

CAPITAL £50,000 Divided as follows : 40.000 Ordinary Shares of £1 each £ £ Issued as fully paid-up to holders of ordinary shares in the vendor company 3,600 To be issued to the public .... .. .. • • • • • • • • 20,000 To be held in reserve .. .. .. .. .. •• •• • • •• 16,400 10.000 6 per cent. Cumulative Preference Shares 'of £l each Issued as fully paid-up to holders of preference shares in the vendor company 2,500 To be issued to the public , 7,500 1 tf TERMS OF ISSUE : 2/6 per share payable on application; £50,000 2/6 per share payable on allotment; and the balance as required in calls of 2/6 per share at intervals of not less than one month.

HOSIERY MANUFACTURE Already the manufacture of Hosiery has become firmly established In New Zealand, and there is every indication that the industry has » future of assured progress. This applies particularly to the manufacture of women’s hosiery in which great progress has been made during recent years. Experts believe that the Dominion should, in a very few years, be able to manufacture its total requirements . . . on a quality and price basis more favourable to the wearer than is the case at present with imported hosiery. It is noteworthy that until a few years ago all hosiery for women was made by what is known as the “circular” method. In England a large quantity of hosiery is still made by that method. The next development was the manufacture of “fully fashioned” stockings which immediately became popular. Of recent years New Zealand has made rapid progress in the manufacture of fully fashioned hosiery. At one time the United States of America sent large supplies of ladies’ hosiery to New Zealand, During recent years, however, Canada has displaced U.S.A. as the principal source of supply of fully fashioned hosiery for the New Zealand market. At the same time Australian manufacturers have secured a considerable share of this trade. Only a negligible quantity of fully fashioned silk hosiery is imported from England . . . principal hosiery lines imported from the U.K. being cashmere and children’s hosiery, etc. HOSIERY MACHINERY RECENT IMPROVEMENTS Until quite recently the manufacture of fully fashioned hosiery involved two separate major manufacturing operations. One machine made the legs and another the feet of the stockings; this involved the transfer of the partly knitted stocking from one machine to the other on which the process was completed. A serious drawback to this . method of manufacture was the difficulty of avoiding a visible join across the instep of each stocking. Difficulties also arose in the proper “matching” of the “texture” of the two component parts. For years the manufacturers of knitting machinery have been working on the problem and endeavouring to devise a machine that would obviate the necessity of two separate knitting operations and their attendant drawbacks. Particularly in Germany has a great amount of research and experiment been devoted to this problem. Success has at last rewarded the efforts of German manufacturers and enabled them to produce machines that are outstandingly successful. The disadvantages of “two-piece” manufacture have been) overcome and the whole stocking can now be made in one piece at one operation without the necessity for the Joining of leg and foot. Needless to remark, these “one-operation” machines, known as the “complete” type, represent a great and most important advance on any type of machine now in use. So far there are not any of these new machines in use in New Zealand and to date less than twenty have been installed in Australia though some two or three hundred machines are required to handle the internal trade of Australia. The whole of the output of the new machines so far installed is being sold in that country as quickly as It can be made. The difficulty facing the Australian manufacturer is that to replace existing plant with the new “one-piece” machines would involve the scrapping of thousands and thousands of pounds worth of machinery. Several years must elapse before the Australian manufacturer will be in a position to export the product of the new machine in worth while quantities. Thus the opportunity is presented for a further important development of the industry in New Zealand by the use of these new machines. PROPOSED EXTENSION OF MANUFACTURING FACILITIES ADDITIONAL MACHINERY It is proposed to extend the existing manufacturing plant by importing the latest “single-process” machines that knit the whole stocking In one process. These machines, each of which is a complete manufacturing unit in itself, will provide the volume of production on which the estimated operations of the proposed company are based. These will be the first of this new type of machine to be installed in New Zealand and will give the proposed company important manufacturing advantages. In addition the latest machines for the manufacture of men’s fancy socks will be installed. These Will give a wide range of attractive modern designs. LARGER FACTORY It is proposed to remodel and make additions to the present factory and provision for still further extensions has been made by securing an option on adjacent land at a particularly favourable figure. CAPITAL OUTLAY The estimated immediate capital outlay to install the modem mac'hines complete with all incidental equipment, building, stock of raw materials, and the necessary working capital is as follows: — £ New Building and first instalment of Additional Plant 11,000 Wording Capital .. .. .. .. .. 7,000 Brokerage and Preliminary Expenses .. .. .. 2,000 New Capital Required .. .. .. 20,000 It is proposed to provide for a Nominal Capital in excess of present requirements in order to facilitate expansion, such as the installation of more machinery, as conditions warrant it. ADVANTAGES OF EXPANSION The advantages that would accrue by extending the business of the vendor company were under discussion by the directors of the Selwyn Hosiery Manufacturing Company, Limited, for some time. , Particular attention was given to the increased turnover and extra profits that could be earned by the installation of the new “one-process” machinery for the manufacture of ladies’ fully fashioned hosiery of the highest class. It is considered that this new machinery will successfully extend manufacturing operations to, the advantage of both the , shareholders of the new company and those of the previous company who have become shareholders in the new company. In May last, at the suggestion of the Australian Trade Commissioner, Mr. Fairbrother, together with Mr J. Roy Smith, Auditor of the Company, paid a visit to Sydney and Melbourne to investigate the position. Together and individually they visited the leading Australian factories and were convinced of the trend towards the fiew type of hosiery. Particular enquiries were made regarding the new one-process machines which were thoroughly investigated, Mr. Fairbrother gaining valuable experience by assisting an expert for several weeks in the erection in Sydney of a machine of the type proposed to be installed, PRODUCTION The new machinery makes an article which is in vogue and for which there is an urgent demand. The fashion for very fine gauge hosiery accentuates the advantage of this type of production. The new product will be filmy, ringless, and sheer, tailor modelled, in modern tones, to suit the mode for the ensemble. Finest silk processed through modern machinery, dyed and finished by the latest methods and handled by expert operatives will become a thing of beauty as well as utility. Tudor Hosiery, Ltd., will be first In New Zealand to install this modern type of machinery. ESTIMATED ANNUAL INCOME ON 40 HOUR WEEK BASIS Based on the operations of Selwyn Hosiery Manufacturing Company, Limited, in conjunction with the estimated production of the new machinery, the combined trading results that will represent the company’s annual operations should be as follows: PRODUCTION AND MARKETING The new machines will be worked three shifts on a forty hours per week basis and an allowance of four weeks per annum has been made for holidays and stoppages. £ Sale Value of Output .. 42,042 Manufacturing Cost, including Raw Material, Dyes, etc.. Labour Depreciation, Repairs. Electric Power and Heating, Coal, Insurance, and Rates 26,449 Selling Cost, including Commission and Travelling, Discount, Cartage, Advertising, Bad Debts, Sales Tax .. 7,429 Administration, including Management, Life Insurance, Salaries, General Expenses .. .. .. 2,775 J Estimated Profit Margin . .. .. 5,389 Appropriations Directors’ Fees .. .. 300 Income Tax .. .. .. 1,302 Dividends; 6% on £IO,OOO Preference Capital .. 600 Made up as follows: 2500 fully paid £1 shares issued to vendors .. .. .. 2,500 7500 £1 Shares issued to public to be fully paid .. .. 7,500 £IO,OOO 10% on £16,100 Ordinary Capital .. 1,610 • Made up as follows: 2,210 3600 fully paid £1 shares issued to 3,812 vendors ... / .. 3,600 20,000 ordinary shares Issued to the public to be paid up to 12s 8d 12,5(H) £16,100 ftALAKCfi available log reserves £1,577

CERTIFICATE OF VALUATION Copy of Certificate of Valuation of Plant, Equipment, Fittings, and Stock by Mr C. W. Rudkin, of Lane. Walker, Rudkin, Ltd. CHRISTCHURCH, Ist April, 1936. I HEREBY CERTIFY that I have carefully checked the schedules am! respective valuations of the machinery, plant, equipment, and fittings owned by the Selwyn Hosiery Manufacturing Company, Limited, and which are being sold to the proposed new Company to be formed under the name of Tudor Hosiery, Limited. I have had in mind the necessity for adopting a conservative view of these assets and have accordingly seen that everything is written down to such a basis. I accordingly certify that, In my opinion, the value of the machinery, plant, and stock of finished goods and materials to be acquired by Tudor Hosiery, Limited, is as follows: — £ L o* Plant, Equipment, and Fittings as contained in factory at 351 Selwyn Street, Christchurch, and an Austin Motor-car 4,103 16 11 Stock of finished and partly finished Hosiery, and of Yarns, Dyes, and Other Materials . • 3,669 11 0 (Signed) C. W. RUDKIN. THE FREEHOLD AND PLANT OF THE SELWYN HOSIERY MANUFACTURING CO. LTD. The freehold comprises a favourably situated comer block in a, popular industrial area, close to trams and with easy access to the railway. The frontages are approximately HI feet on Selwyn Street and 70 on Ward Street. An option has also been secured on very favourable terms over adjacent land for future extension of premises. The present factory Is fully equipped with plant for every operation in the production of modem hosiery. It comprises of approved type to continue the manufacture of present “Selwyn” lines, particularly women’s circular hosiery and men’s fancy socks, now enjoying a steady demand in this market. The whole of the plant has been well cared for and is in perfect working condition. For each machine there is complete stock of accessories and spare parts. The Dye House is equipped with the latest type of machinery and is more than adequate to handle the proposed output of the Company. The complete schedule of machinery, plant, etc., may be inspected at the office of the solicitors for the new company, or at the offices of the organising brokers. BASIS OF PURCHASE The foregoing assets have been acquired as part and parcel of the Selwyn Hosiery Manufacturing Company, Limited, as a going concern as from Ist April, 1936; all the valuable and successfully established trade connections of that Company have been preserved. No cash has been paid but the sale has been achieved by virtue of a reconstruction whereby the Selwyn Hosiery Manufacturing Company Limited, has gone into voluntary liquidation and has by agreement sold to Tudor Hosiery, Limited, the whole of its business undertaking assets and liabilities. Tudor Hosiery, Limited, assumes the liabilities of the Selwyn Hosiery Manufacturing Company, Limited, and allots to each shareholder of that Company one fully paid £1 share in Tudor Hosiery, Limited, for every £1 of paid-up capital in the Vendor Coy. In compliance with “The Companies Act, 1933,” provision was also made in such agreement for any shareholder to realise the value of his interest instead of taking fully paid shares in the new Company, but only two shareholders decided on this course. The total number of shares of £1 each which this Company is required by such agreement to issue as fully paid to shareholders of the vendor company is 6100, and for this it receives an equity of £6778 Is 7d, made up as follows; ASOUTTC* £ s. d. £ s. d* Buildings, Flant, Stock, Book Debts, etc., as set out .. 9,423 4 o LESS LIABILITIES as per Audited Bal-ance-Sheet, 31st March, 1936: Loans on Mortgage and Deposit .. 875 0 0 Sundry Creditors .. . • 1.343 10 2 Bank Overdraft .. .. .. 425 12 3 * J VALUE OF EQUITY IN BUSINESS ACQUIRED .. 6,778 1 7 Issue to Vendor Company of 6100 £1 Shares fully paid in Tudor Hosiery, Ltd., at par .. 6,100 0 0 Difference available as a Reserve .. .. .. £ 678 1 7 Evidence of the Vendor Company’s confidence in the future success of the new Company is shown by the fact that not only has £673 Is 7d been conceded in the purchase price, but no payment is to be made in respect of goodwill and registered trade mark. SELWYN HOSIERY MANUFACTURING GO. LTD. BALANCE SHEET As at 31st March, 1936 LIABILITIES Nominal Capital: £ s. d. £ s. d. 4200 Ordinary Shares of £1; 2500 Preference Shares of £ 1 .. .. 6,700 0 0 Less Uncalled Capital—los per Share on 1200 Ordinary Shares .. .. 600 0 0 Loan Accounts: Mortgage on Factory .. 475 0 0 Deposit Account .. .. 400 0 0 - 875 0 0 Sundry Creditors; Bills Payable and Open Accounts .. 1,143 10 2 Preference Dividend to 31-3-36 .. .. 200 0 0 National Bank of New Zealand, Ltd. .. 425 12 3 Rebuilding Reserve .. .. .. 200 0 0 Profit and Loss Account: Balance Carried Forward .. .. 632 12 2 £9,576 14 7 ASSETS Property: £ s. d. £ s.. d, £ s. d. Factory Premises .. .. 644 0 0 Less Depreciation .. 13 10 0 Plant and Machinery .. .. 4,364 2 4 Less Depreciation .. .. 360 10 7 Motor-car (Austin 12) .. .. 75 0 0 Less Depreciation .. .. 18 15 0 Office Furniture .. .. 46 6 6 Less Depreciation .. .. 2 6 4 * Stock on Hand: Hosiery, Yarns, and Materials 3,669 11 0 Sundry Debtors 884 0 1 Less Bad Debts and Discount Reserve .. .. 50 0 0 Add Expenses Prepaid .. 46 16 2 880 BBO 16 3 Life Insurance Policy; Surrender Value 31-3-36 .. , .. 137 910 Goodwill, etc. .. .. .. .. .. 134 10 7 £9,578 14 7 W. C. FAIRBROTHER I . P. G. JOYCE / Directors I have examined the Vouchers and Books of Account of Selwyn Hosiery Manufacturing Co., Ltd., and certify that all my requirements as Auditor have been complied with and that in my opinion the foregoing Balance Sheet as at 31st March, 1936, is properly dravm up so as to exhibit a true and correct view of the state of the Company’s affairs according to the best of my information and the explanations given to me, and as shown by the Books of the Company. Stock Sheets have been certified by Mr C. W. Rudkin. i, ROY SMITH, Auditor, EJP.A.N.Z, AJU&

Directors ITFKRY FREDERICK HERBERT, of Christchurch, Managing Director, Herbert Shoe Store Ltd. WILFRED CHARLES FAIRBROTHER, of Christchurch, Managing Director, Selwyn Hosiery Manfg. Co. Ltd. HERBERT CYRIL CHARLES GOVAN, of Christchurch, Comanaging Director, Lichfield Shirts Ltd. HEATHCOTE GEORGE HELMORE, of Christchurch, Registered Architect. FREDERICK GEORGE JOYCE, of Christchurch, Director, Selwyn Hosiery Manfg. Co. Ltd. Bankers NATIONAL BANK OF NEW ZEALAND LTD. Solicitors UVINGSTONE AND HENSLEY, 97 Worcester Street, Christchurch. Auditor J. ROY SMITH, F.P.A.N.Z., 159 Oxford Terrace, Christchurch. Interim Secretary F. G. JOYCE. Registered Office 351 SELWYN STREET, CHRISTCHURCH. Applications for Shares may be made to’the Organising Brokers HAMILTON AND HAMILTON, Members of the Christchurch Stock F-rrhance 82 Hereford Street, Christchurch, or to any Member Exchange affiliated with the Stock Exchange Association of New Zealand. ranißE OF HEW ZEALAND MANUFACTURING INDUSTRIES With aoDroximately a third of the total population of this Dominion dJS£dta XeTou/motropolilan centres, it * J recognised that the economic progress of New Zealand is increasing y Zealand S mduriries W have made steady progress *^o Reduction of high grade goods at prices evl from overseas. In the opinion of many. New Zealand is on, tne e peti developments in manufacture. POINTS FOR THE INVESTOR L Buildings, plant, stock, and other assets will be acquired by the new Company on exceptionally good terms. . t. for goodwill . . . all ffie goodwiU of the existing buln«M is obtained without cost to the new Company. 1 No promoters' shares ... the investor comes in on the ground 4. of a large amount of. capital in existing building and plant. tNo p^SiSlSi? period"©? establishment » nd r^ble ... the new Company takes over a business in profitable 1. freehold and heavy annual charges 8. No break in the continuity of successful management, f. The Directors are well known and successful business men. I*. The Cumulative Preference Shares bear a fixed dividend have preference as to capital a* wc,! that “ SOU nd 1L Present political and economic conditions indicate that souna industrials” are good Investment OBJECTS OF THE COMPANY The primary object of the company is to ß^ q^^ osfer?aMSmu from the Ist April, 1936, the business of the Sriwra Hosiery Manu factoring Company. Limited, as a going concern and by additional |„.L, *i, e niant and to extend operations with propor tonttoeiy increased earning capacity. There is no break in ■ Lj the management which has successfully conducted the Selwyn Company over the past’ eight years, continues the voiurUarv liouidafion). was a successful company registered in Christy q Paid to 1200 ordinary £1 shares paid to 10s, and 2500 preference snares £ 1 each fully paid. OFERATIONS OF THE SELWYN HOSIERY MANUFACTURING CO. LTD. Christchurch, as per a copy of his report here^ hr f^ stchur t chi n.Z„ 14th May, 1936. Vo the Directors of Tudor Hosiery, Limited, Christchurch. th. byte and Horiaw SSSfilSt?S!rßsr Jesuits disclosed by the Company s records are as follows. Year Ended 31st March 1929 .. 1930 .. 1931 .. 1932 .. 1933 .. 1934 .. 1935 .. 1936 Turnover £ s. d 8,917 8 8 11,770 15 0 10,350 19 5 10,801 8 7 11,343 1 H 9,736 6 1 10,555 12 1 10,853 9 8 Profit £ s. d. 789 4 10 567 14 626 12 236 0 248 10 266 9 416 1 Loss £ s. d. 310 2 7 A, Auditor of Tudor Hoaiery. Umlted. - C^ P daTotMayl9M‘mU ,h noacc£.n. y S have been made ? and no dividends paid. Yours faithfully, „,, TmTT (Signed) J. ROY SMITH. The loss for the year ending Sl-S-Slrepresentedadrashcwfiing own of stocks and justified itself by the profit made the following *The net profits earned by the Company during years of i existence—l92B-1936, less the loss made m 1931, and a ichange fluctuation reserve created during the period to 3340 10s Id. This is an average net profit of £417 11s 3d P er "“"“i —I tfl pi ioh nt>r cent on the Company s subscribed capital or the Company durii.lt the period under review ■MI the 4th March, 1936. ASSETS ACQUIRED The value of the assets of the Selwyn Hosiery Manufactwine xnpany, Limited, as at 31st March, 1936, is £9422 4s, made up as Hows:— FOLDINGS AND PLANT:' Rtotory Premise* —freehold •• Hunt and Machinery —including Motortor and Office Furniture, as per Certificate of Mr C. W. Rudkin as at Ist April AND BOOK DEBTS: Stock— Finished hosiery, hosiery m course of manufacture; yarns, dyes, and other material* as per Certificate of Mr C. W. BvSkln at Ist April 1938 • • • • Cwtomers' Accounts— Currejft Sundry Debtors less Reserve for Bad Debts and Dhcounts rrspald Expenses - INSURANCE POLICY: . w r £IOOO with A.M.P. on the life of W. C. Ealrbrother for the benefit of the Compftny—Surrender value at 31-3-35 or ASSETS TAKEN OVER d. £ s. d. 630 10 0 4,103 16 11 3,669 11 0 4,734 6 il 834 0 46 16 4,550 7 3 137 9 10 £9,422 4 0