VETERINARY CLUB REPORT

Press, Volume XC, Issue 27466, 28 September 1954, Page 9

VETERINARY CLUB REPORT

INCREASE IN CAPITAL REQUIRED

An increase in turnover with a low margin of profit is disclosed in the balance-sheet to be presented to the sixth annual meeting of the North Canterbury Farmers’ Veterinary Club (Inc.).

The annual report of the president (Mr J. J’. Hughey) stated that the club had increased activities without increasing capital accordingly, which would be necessary to make them a sound venture. Book debts and stocks of drugs had increased by £2200. This increase was balanced by an increase in sundry creditors (£1100) and a decrease in the bank balance of £6BO, plus £434 of the net profit of £534 The other £lOO of the net profit had been used to repay £lOO of the mortgage on the Rangiora headquarters. In other words, said the report, a clear profit of £llOO was required to meet the expansion without the introduction of new capital. It was obvious that the club would be quickly embarrassed unless it made provision for this extra capital dr from a permanent bank overdraft.

A further £12,000 was required within the next three years to vide the service members required, the report said. Consequently, the executive, in considering the whole question of capital finance, considered thht endeavours should be made to finance the club on a uniform basis and that no matter how the club was financed provision must be made from the general income of the club to repay its liabilities within a reasonable period. To raise the necessary capital finance required the executive was investigating the possibility of issuing interestbearing debentures acceptable to members as a straight-out investment. The work of the club had continued its upward trend so that there was little reason yet to believe that the veterinary needs of the district were fully met, said the report. Since Mr Bruere had joined the staff with headquarters at Waikari, the services requested in the northern area had trebled and there had been some relief on the pressure of work previously undertaken by Messrs Jebson and Cook. The club now had a turnover exceeding £13,000 per annum and the executive considered that it might profitably employ its own clerical staff. With this object in view applications had been called to fill such positions.