MCKENZIES (N.Z.), LTD.

Press, Volume XCIII, Issue 27962, 8 May 1956, Page 17

MCKENZIES (N.Z.), LTD.

COMPANY NEWS

REORGANISATION OF GROUP (New Zealand Press Association) WELLINGTON, May 7. The directors of McKenzies Department Stores, Ltd., propose that that company should be wound up and that stockholders should be issued with an equivalent number of units in McKenzies (N.Z.), Ltd., formerly J. R. McKenzie.

McKenzies (N.Z.), Ltd., is the company controlling all the group’s activities and trading; McKenzies Department Stores, Ltd., owns all the shares in McKenzies (N.Z.), Ltd., and is purely a holding company, receiving dividends and paying them out to its stockholders.

In a circular letter to stockholders, the chairman of directors (Sir John Hott) says that McKenzies Department Stores, Ltd., as a holding company,_ now serves no useful purpose but involves considerable additional accounting work and added expense. Changes in the form of presentation of the annual accounts, required by the Companies Act. 1955. will be simplified if the group position is presented to stockholders without complicating the accounts with those of the holding company.

At present McKenzies (N.Z.), Ltd., and McKenzies Department Stores. Ltd., have different balance dates, and this fact involves numerous adjustments which will not. be necessary under the new arrangement. Some stockholders have been unable to reconcile the consolidated figures of the trading group (J. R. McKenzies, Ltd.) and subsidiaries with those of the parent company (McKenzies Department Stores, Ltd.). This difficulty will be removed.

Application was made to change the name of J. R. M Kenzie, Ltd., to McKenzies, Ltd., but permission was not granted, and the title McKenzies (N.Z.), Ltd., has been accepted. ‘‘However, the company will continue to be known to the public as ‘McKenzies',” the circular states.

The stock units of McKenzies (N.Z.), Ltd., will be listed by the stock exchange. There will be no change in either the asset backing or the earning capacity of stockholders’ funds, and the units should, therefore, be quoted at the same price. The proposals will be placed before stockholders after the annual meeting m July.

CHRYSLER’S EXPANSION PLANS

Details of his firm’s expansion programme were announced last week by Mr W. D. Ferguson, managing director of Chrysler (Australia), Ltd. Although it employed more than 4500 persons in seven major plants near Adelaide, the company had recently purchased a new picturesque 180-acre site, known as Tonsley Park, closer to the gulf on which Adelaide is situated. This site would be the company’s new manufacturing centre and a total of 7000 people would be employed there eventually. Construction of a new MOPAR spare parts division was already well advanced on this site. The building, which would have 100,000 square feet of floor space and cost £500.000, would be occupied in July. Another project to begin soon was a new £500.000 plant for mass-pro-ducing precision components used in the company’s cars and trucks. This included a motor assembly plant and workshop for machining operations and they would employ 500 people. The machines, equipment- and facilities would represent the most advanced manufacturing methods and machine tool processes employed in the automobile industry.

Sharland Bros.—Unchanged dividends of 3 per cent, are payable on both ordinary and preference shares on May 10, ex April 27. . Dominion Fertiliser.—An ordinary dividend of 8 per cent, plus a bonus of 2 per cent., making 10 per cent, (unchanged), for the year is recommended. Ex dividend date is May 25. (P.A.) Otago and Southland Finance.—Recommended dividend on the ordinary shares is raised from 5 per cent, to 5J per cent. Ex dividend date for ordinary and preference shares is May 17.—(P.AJ Ampol Petroleum.—An interim dividend of 61 per cent, is payable on ordinary stock units, ex June 1. Since last year, when a total of 12J per cent, was paid, ordinary capital has been increased from £2.735,600 to £3,729.631.—(P.A.) Wormaid Bros. (N.Z.), Ltd.—The company advises that Messrs N. H. Holland and J. H. Slater have been appointed directors in place of Messrs B. C. H. Whitcombe and C. H. Griffin, who resigned from May.— (P.A.) Andersons, Ltd.—Recommended final ordinary dividend is 2s a share, making 2s 6d (12J per cent.) for the year. This compares with a total of 14 per cent, last year, 13 1-3 per cent, in 1954, and 10 per cent, in 1953. Final dividends of 2J per cent, on the first and second preference shares are also payable. Ex dividend date is May 14.