N.Z. FARMERS’ CO-OP.

Press, Volume XCIII, Issue 27993, 13 June 1956, Page 17

N.Z. FARMERS’ CO-OP.

COMPANY NEWS

ISSUE OF ONE FOR FOUR AT PAR

The balance of unissued B preference and ordinary shares in the New Zealand Farmers’ Co-operative Association of Canterbury. Ltd., are to be offered to holders of all classes of shares in the proportion of one for

four held at June 11. be made at par (10s)

The issue, tn marks the

seventy-fifth anniversary of the firm. The new shares are payable in full on application, not later than August 1. and will rank for dividend from August 1. Thev will not participate in dividends for the year ending July 31.

Last year, dividends on first preference shares were increased from 6$ per cent, to 81 per cent, on first preference shares and from 6 per cent, to 8 per cent, on A preference. B preference, and ordinary shares. “Tn

making the present offer, it is the reasonable expectation of the board of directors that the present rate of dividend will be maintained in the years to come,” says the chairman (Mr C. P. Agar) in a circular to shareholders. “Because of the two different classes of shares available for offer to the shareholders, it became necessary to determine how the B preference and ordinary shares should be apportioned

to shareholders. It was decided to determine by a lot which class should be first allocated, and this was done by the association’s solicitor and auditor. with the result that the B preference are the first shares to be allocated in alphabetical order of shareholders’ names.”

CHRISTCHURCH GAS

CHAIRMAN’S REVIEW OF YEAR

A very heavy demand for gas last winter and a four-months delay in the commissioning of the new carbonisation plant forced the Christchurch Gas, Coal, and Coke Company to resort to increased production of the more expensive carburetted watergas lart winter and summer. “The effect on our finances was most serious,” said the chairman of the company (Mr C. P. Agar), discussing at the annual meeting yesterday the ‘‘far from satisfactory” net profit of £9343 earned in the year ended March 31. Very heavy gas sales last June, July, and August seriously overtaxed the capacity of the retort plant. By AugUst the retort house plant was reduced, through damaged retort plants, by some 13 per cent, of its normal maximum capacity, and by th? end of winter six out of the 13 horizontal settings were in need of a further extensive rebuild. Expensive repairs had to be made to the horizontal retort house to maintain production until the commissioning of the new plant—originally scheduled for February, but deferred until June because the British dock strike delayed the shipping of materials.

Estimate of Extra Costs Heavy recourse had to be made to the carburetted water-gas plants during the winter, but this was in no way exceptional. While repairs to retorts were carried out during the summer months, however, these plants were again in full operation. “The extended use of the carburetted watergas process, combined with the other factors referred to, necessitated a reduction of coke sales amounting to 4643 tons, the extra consumption of fuel oil for water-gas enrichment amounted to 220.000 gallons, and the extra steam required for water-gas generation necessitated the use of an extra 1200 tons of coal,” said Mr Agar. He estimated the extra cost of these items, and of the extra labour and repairs required, at £59,800 approximately, although there would be some offsets against this figure. Referring to the new vertical chambers carbonisation plant, commissioned over the Queen’s Birthday week-end), Mr Agar said: “In the new plant we have sufficient capacity to carry the maximum winter load without recourse to carburetted water-gas for several years to come.” This was in spite of the fact that “1957 will see the commissioning of Cashmere Hospital, which will bring to the company the biggest individual gas load in New Zealand.”

BRENT’S BONUS AND CASH ISSUE APPROVED

(New Zealand Press Association) AUCKLAND, June 12.

Shareholders of Brents, Ltd., Rotorua tourist hotel proprietors, today approved the directors’ proposals to increase paid capital from £27.750 to £60.000 by means of a one-for-two bonus issue from reserves and a cash issue, at par. The bonus issue of 13,875 shares comprises £11,362 of the share premium reserve and £2513 of the special reserve. The cash issue consists of 18.375 shares. In his address to shareholders at today’s extraordinary general jneeting. the chairman, Sir Ernest Davis, said that Brent’s is now the largest licensed hotel in New Zealand, and the present accommodation for 200 guests would soon be increased to 230. In order to finance the undertaking, the company had arranged to borrow £60,000 on mortgage. The proposed new share issue would provide £18.375 with which to complete the additions and improvements.

HILL AND PLUMMER’S ACCOUNT

(New Zealand Press Association) AUCKLAND, June 12. Net profit of Hill and Plummer. Ltd.. Auckland, declined by £4lOO to £4173 in the year ended April 30. In their report. the directors say that the decline is due to the fact that no dividend has vet been received from the ( subsidiary. Hill and Plummer (Merchants), Ltd., whose annual meeting will not be held until June 21. The latest result was reached after provision of £350 more for taxation at £4350.

In spite of the reduction in income, the company is maintaining its dividend at 9 per cent., which requires £5llO. The net orofit fails to clear this by £937, and the carrv-forward is reduced from £9450 to £8513.

Income from interest and rents was £9083, compared with £12,832 from interests, rents, and dividends in the previous year, when the subsidiary’s dividend was paid before the holding company’s balance date. Other income increased by £7 to £ll. while expenses, apart from taxation, increased by £8 to £571.

Dunlop (N.Z.), Ltd.— lnterim preference dividend is 21 per cent., ex June 22. (P.A.)

C. and A. Odlin, Ltd.— lnterim dividends of 5 per cent, ordinary and 2J per cent, preference are payable on June 20, ex June 4. Total ordinary payment last year was 10 per cent. Claude Neon (N.Z.). —An interim dividend of 4 per cent, is payable on June 29. ex June 22. Last year’* interim of 4 per i cent, wa* followed by a final payment of • par e*nt—(PA.)