Station Agent To Seek Listing

Press, Volume CIX, Issue 32077, 27 August 1969, Page 16

Station Agent To Seek Listing

(New Zealand Press Assoctailon) INVERCARGILL, August 26. The old-established Southland stock and station agency firm, J. E. Watson and Company, Ltd, is to seek public listing soon with the issue of 155,500 ordinary 100 c shares, the annual meeting decided in Invercargill yesterday.

The company, which has been in operation for more than 80 years, was founded by J. E. Watson and John Gilktoson. It became a private limited liability company in 1902. Moves made at the meeting will bring the issued capital to $BOO,OOO and the authorised capital to film. The derision to go “public” was described by the chairman (Mr A. F. Gilkinson) as a milestone in the company’s history. The step was being taken reluctantly by some members, but changing circumstances dictated changing tactics, Mr Gilkinson said. The company had outgrown its present structure. He described the year to June as one of growth. Trading profit was up from $185,494 to $200,313 and taxpaid profit from $89,007 to $97,174, after depreciation totalling $46,513. The dividend on both ordinary and preference shares is to be 8 per cent compared with last year’s 7 per cent. Transferred to the general reserve was $75,000 bringing the total general reserve to $600,000. The dividend is covered 2.2 times.

J. E. Watson was the only broker to record an increase in the quantity of wool offered in Invercargill in 1968-69, Mr Gilkinson said. The kill of sheep and lambs

through the company was down 3 per cent, but livestock sales were up 6.5 per eent. The profit from the shipping department had been “very substantial,’’ and activities from the fields of travel, retailing, grain drying and seed cleaning had also been satisfactory. Discount houses, Mr Gilkinson, Mid, had affected merchandise sales but their effects should soon be offset by inevitable increases in thejr overheads. Preparatory steps toward a public listing for the company included the conversion of 235,500 founders’ shares, 153,000 employees’ shares and 56,000 “A” preference shares into ordinary shares totalling $445,000. The present holders of founders’ and employees’ shares are to be issued bonus shares in the ratio of one for every six fully paid. Assuming that the new issue is fully subscribed the total of $BOO,OOO paid up in fihare capital will be taken up by $445,500 in ordinary shares, $200,000 in the present “B” preference shares and $155,500 from the public. The board of directors remains unchanged. Members are Messrs Gilkinson (chairman), R. T. Stewart (deputy choirman), J. N. Armstrong, B. Hensley, H. W. Norris, W. H. Sad Mer, S. W. Turnbull and H. R. Wilson.