A YEAR OF PROGRESS

Press, Volume LXXIV, Issue 22593, 24 December 1938, Page 14

A YEAR OF PROGRESS

B ALLINS BREWERIES, (N.Z.), LTD STEADY INCREASE IN SALES DIRECTORS’ ADDRESSES AT ANNUAL MEETING The second annual meeting of shareholders of Messrs Ballins Breweries (N.Z.), Ltd., was held in the Chamber of Commerce Hall on Thursday. Mr J. Mawson Stewart (chairman of directors) presided, and there was a fair attendance of shareholders. Mr Stewart, in moving the adoption of the report and balance-sheet, said: “Your board has pleasure in presenting to shareholders the second annual report and balance-sheet of the company for the year ending September 30. 1938. “In addressing you last year I said it would have been a great pleasure to have been able to recommend payment of a dividend to shareholders. You will notice by the report now presented to you that this year the directors recommend payment of a further 2 per cent, dividend for the half-year, making, with the interim dividend already paid. 4 per cent, for the year. “Although the dividend is not as high as your directors would have liked, yet shareholders will admit that history of companies shows that very few new companies have paid dividends in the first year or two of trading. Actually we could have recommended a little higher dividend, but your board preferred to have a substantial ‘carry-over.’ "I am pleased to be able to report to you that as far as. the brewery is concerned capital expenditure on buildings and plant hasceased, and we have now probably the most up-to-date brewery in the Dominion. “Our sales have shown a steady increase month by month, and the figures since September 30 show a considerable increase on the figures over a similar period of the year now under review. “It is pleasing to know that during the last 12 months (and we trust during the year to come) our hotelkeeper customers, notwithstanding that costs have risen, have been able to make good headway and show a profit in their businesses, to which you will admit they are justly entitled. Their prosperity, of course, means our prosperity. “The company has, along with many other companies, paid its share, or probably more than its share, towards the administration costs of the Government. Our payments in this direction have been something like £IOO,OOO for the year. "Notwithstanding the fact that our brewery business has had to carry the 7£ per cent, discount applicable only to Christchurch and surrounding districts, we have been able to show you a gross profit of more than £35,000. Had we been trading in other centres in New Zealand, where this discount is not allowed, our gro£s profit, and, incidentally, of course, our net profit, would have been considerably increased. “Referring to the balance-sheet figures you will notice that the largest increase in assets has been in respect of freehold and leasehold properties and advances on mortgage and investments to the trade. The increased expenditure under this heading was necessary in order to bring the brewery closer to capacity output. “I can assure you that any hotels purchased have been purchased at reasonable prices, in keeping with the value of the land and buildings, and the turnover of the particular house. “Other assets are in keeping with the figures of last year, allowing for the increased business done. “The paid-up share capital is £182,739, as against £176,841 last year. "As explained in the directors’ report, a prospectus has been issued inviting applications for debenture capital. This has been done in order to consolidate the finances of the company. “Staff —I do not propose to refer to the staff. Suitable reference will be made later by one of the members of the board more in touch with the staff than I am. The Future “High operating costs must, I think, be expected during the coming year, but they should be no higher than in the past year. I am not optimistic enough to believe that we will get any relief from taxation for some time. “Owing to the shrinkage of our Dominion London funds, it would appear we will have to face up to a licensing scheme in respect of our imports. “At the moment, we have no idea of the extent of the restriction likely to be imposed, and the class of imports likely to be affected. “It may be that a section of our business will be affected for a time, but even if this should be so, it is reasonable to suppose that we will recover part at least of any lost turnover in imported goods through increases of sales of our locally-manufactured goods. “We cannot shut our eyes to the fact that difficulties must be faced and met during the coming year. My own personal opinion is that the businessmen of the Dominion must be prepared to pull their weight and 'get behind’ the Government of the day. “If we must criticise,, let our criticism be constructive criticism. The man who persists in shouting T told you so’ and does nothing to help but rather does all he can to hinder, can surely have no ‘kick’ coming if what he persists in shouting will happen, does happen. “I have now great pleasure in moving the adoption of the report and bal-ance-sheet.” Mr C. J. Ronaldson in seconding the motion for the adoption of the report and balance-sheet said; — “At our annual meeting last year I referred to the difficulties inseparable from the operations of a new company. “At the same time I suggested that many of the difficulties would disappear when the company got into its trading stride, I further advised shareholders to increase their holdings, rather than sell. “This confidence in the success of Ballins Breweries has been justified by the position of the company as set forth in the report and balance-sheet now submitted for your consideration, and I look for a continuance of profitable trading, with bigger dividends as time goes on. The big increase in our sales indicates alike the excellence of our products and the ‘push’ of our salesmen. “During the year, the company has been obliged to enlarge its premises, and increase the output capacity of its plant in order to meet trading requirements. “This has entailed considerable capital outlay, but such an expenditure for the purpose of increasing profits should carry your ready endorsement. As your chairman has touched upon the salient features of the balancesheet, there is no need for me to enlarge upon what he has told you. The Debenture Issue “In regard to our present issue of debentures of £IOO,OOO for the pur-

pose of consolidating our finance and to provide for further trade expansion, I have had sufficient experience in financial affairs to describe it as a firstclass well secured investment, and can recommend it as such. “I would further assure shareholders that the long vision policy of the directors is to build up the resources of the company to the extent necessary to meet its own financial needs. Naturally this will take time. “I have much pleasure in seconding the adoption of the report and bal-ance-sheet of Ballins Breweries (N.Z.), Ltd.” Mr Otto Ballin, in supporting the motion, stated:— "The turnover has increased by onethird taking the period of the first 15 months compared with the following 14 months, and both the factory and brewery have shown satisfactory increases contributing to this desirable result. “When the company started there was a figure set in turnover which we hoped to accomplish in five years. This figure has now been reached and exceeded in the two years and five months in which the company has been established. “The brewing tower and plant has proved both economical and efficient. When constructed, it was designed to brew three brews of 60 hogsheads each every 24 hours. Lately the company has been brewing twice a day, and the two brews have been finished in 13 hours. It will be seen that the increasing trade can be met with very little extra expenditure, only some extra cellar accommodation will be required. “I would like to take this opportunity of thanking the gallant hotelkeepers who threw in their lot with the company when it first commenced business, and trust that they are now being rewarded, as without any fear of contradiction I venture to state that hotels servicing Ballins draught beer exclusively are enjoying an increased trade far above the natural increase which has taken place in the consumption of beers. “I would also like to thank on behalf of the directors our head brewer, Mr C. Sanders, and his assistants for their able management at the brewery. They have met all the demands which have been.made on them in a manner which reflects the highest praise, and the excellent quality of the beers produced has greatly assisted in establishing the company on a sound footing. “The directors would be delighted if any shareholders cared to come down and inspect the brewery and factory. If they make themselves known we will be only too happy to show them round, and I feel that they will be satisfied that they have assisted to establish a large and flourishing busiThe chairman then put the motion for the adoption of the report and balance-sheet, which was carried unanimously. Messrs H. I. Ballin and P. N. Quartermain were re-elected directors, and Mr J. B. Neale, F.P.A., was re-elected auditor. [Extended report published by Arrangement.] GOVERNMENT SECURITIES LONDON, December 22. The following are the latest quotations for Government securities compared with quotations ruling last week: —

NEW YORK STOCK EXCHANGE NEW YORK, December 22. Turnover on the New York Stock Exchange to-day was 1,040,000 shares.

Dec. 15. Dec 22. £ s. d. £ s. d. British— Consols, 23 p.c. .. Funding Loan, 4 70 5 0 70 15 0 p.c., 1960-90 .. 107 17 6 107 5 0 War Loan. 31 p.c., 1952 98 1. 3 97 10 0 Con. Loan, 31 p.c.. 1961 98 6 3 97 15 0 Victory Bonds, 4 P.C. 107 0 0 106 15 0 Commonwealth — 5 p.c., 1945-75 .. 101 0 0 101 18 9 4 p.c., 1943-48 .. 99 5 0 99 1 3 33 p.c., 1948-53 .. 94 7 6 94 1 3 33 p.c., 1956-61 .. 84 16 3 83 15 0 3 p.c., 1955-58 82 11 3 82 2 6 New South Wales— 31 p.c., 1930-50 92 15 0 92 2 6 Victoria— 3 p.c.. 1929-40 90 7 6 89 18 9 33 p.C., 1940-60 100 0 0 100 0 0 4 p.c., 1945-75 102 0 0 101 15 0 Queensland — 3 p.C.. 1922-47 .. 91 10 0 91 17 6 5 P.c.. 1940-60 101 8 9 101 8 9 South Australia— 5 p.c., 1945-75 102 0 0 101 17 6 Western Australia— 3 p.c., 1945-75 .. 4 p.c., 1942-62 .. 73 97 5 11 0 3 72 12 » 6 Tasmania — 31 p.c., 1920-40 100 2 6 100 5 0 4 p.c., 1940-50 97 16 3 98 2 6 New Zealand— 41 p.c., 1948-58 .. 92 5 0 91 15 0 3 p.c., 1940 98 5 0 98 0 0 3 p.c.. 1945 87 12 6 87 12 6 •Not received