SCOULLAR CO.’S LOSS

Press, Volume XCVI, Issue 28429, 8 November 1957, Page 19

SCOULLAR CO.’S LOSS

The Scoullar Company, Ltd., Wellington. furnishers, incurred a net loss of £12,849 in the year ended April 30, compared with a net loss of £l2B in 1955-56. Dividend, which was 6 per cent, last year, has been passed. The manufacture of furniture ceased last December, and the company now buys from other manufacturers. The report states that, after some early troubles, this new policy is now operating successfully and the warehouse is handling a greater range of imported and local furniture than ever before. The mortgage on the Lambton quay property was increased to enable the renovation and modernisation of the main section of the ground floor. Stocks were written down substantially to realistic values and this coupled with the liquidation of the Blenheim branch and the fall in turnover Associated with the renovations, resulted in a loss for the year of £21,969. As part of this loss Was made up of non-recoverable expenses due to the change in policy and the renovations, the sum of £9120 was capitalised as a reorganisation account which will be written off over a period of years. Gross profit fell by £13.869 to £20,755, while expenses were £172 lower at £34,560. Depreciation, disclosed for the first time, was £1242, and no provision for taxation was necessary, against a provision of £2O in 1956. After writing back surplus tax of £l5 (£l3O in 1956), a debit balance of £5250 is carried forward, against a credit of £7584 brought in. The properties at Lambton quay qnd Abel Smith street were written up to Government valuation during the year and the increase of £46.251 has been credited to a capital reserve account.