Page 2 Advertisements Column 7

Dominion, Volume 13, Issue 269, 7 August 1920, Page 2

FINANCIAL. A SPLENDID OPPORTUNITY. i . . ISSUE OF 10,000-ORDINARY AND 10,000 6 TER cent, cumulative PREFERENCE SHARES OF £1 EACH. BOOTH, MAICDONALD & CO. LTD. (Registered under the Companies Acts). MANUFACTURING ENGINEERS, MAKERS AND IMPORTERS OP FARM MACHINERY. ' Head Office and Works: CARLYLE IMPLEMENT AND MACHINE WORKS, CHRISTCHURCH. Authorised : Capital .......i.. .£200,000 Ordinary Capital, paid up <£68,245 Preference Capital, paid-up .... <£77,003 Profits in Reserve £17,621 DISTRIBUTING BRANCHES: ■ Ashburton Auckland ' Dunedin Gieborne Hamilton Hastings Masterton New Plymouth Palmerston North Timaru BOARD OF DIRECTORS: GEO. T. BOOTH, Chairman and Managing Director. SIR GEO. CLIFFORD, Bart. (Chairman of Directors, Canterbury Frown Meat Co.) J. A. PANNETT (Chairman of Directors, N.Z. Farmers' Co-operative Association) HUGO FR'tEDLANDER, Auckland ' " J- W- HARDING, Waipukurau GEO. M. HALL. Sales Manager PETER TROLOVE BROKERS: Any Member of the Associated Stock Exchanges of New Zealand. BUSINESS AND ASSETS OF THE COMPANY. Booth, Macdonald and Co., Ltd.. are engagedl chiefly in the m ?j{ inuf ? ctu '® B ale of hm machinery The fiTmsPloußhs.narrowsW^ work on thousands of farina from the North to the Bluff, helping to pro duoc food nn"l clothing for the world. And, tfcy at* pouring.out o the factory and depots at the rate of thousands per ye.r. , The are in Ch is church, and occupy thres acres of land, while premis.'s in ten of the principal distributing cities and to™s toghout the Dominion. In addition, the firm controls the sole New Zealand Distributing » Ageii'.y for a number of widely-sold machinery and other, lines. . Booth Macdonald and Co., Ltd., specialise alio in the supply of machinery • for SmaK and similar purposes, and- to that end have .personally and periodically searched the markets of tho world-for the most and methods. Its efforts to serve and assist local governing boaiPs in thp r plnM for opening up inaccessible country and improving transportation facilities by the construction and maintenance of Rood roads are appreciated.. The following figures show how the assets have increased in the last five years f Freehold Plant; Property. Tools, etc. Stocks. Total Assets. ' £ .£ , £ £ - 1!)U 21,246 . : 16,200 ' 61,863 132,946 : ... jgjg 43,424 30,149 127,250 276,922 ; Increase 22,178 13,049 ■ 65,387 143,976 Properties are taken at book Values, after annual depreciations bave been written olf. Present market value of properties is several thousands of Pounds high-r. T)i> same'applies to plant. It is maintained in perfect Tunning order at the exnense of current revenue, addition,., siibstnnhftl nmomus l)ecn written off annuallv for depreciation. _ Booth; Maedonalii\ ;Co-LW-. ha\e tho finest plant of its kind in the Dominion, and & is/n e t say that it could not be replaced to-day for less than double the amount stated above. Stocks are taken at cost price or less, ..and, in man* rases •at considerably less thin present market values.. ?, n . . The total assets are sufficient to pay.'otf; all liabilities (exclusive of capital) three times over. V .... . Booth. Macdonald and Co., Ltd., have "never'missed paying a 'dividend. j During the Company's existence it has paid out w£?3,46G. to shareholders in diudends. GROWTH OF BUSINESS' AND - PROFITS. • The following figures show that the turnover-of- lias increased ' fivefold since 1900, and that net profits have .kept; pace: In 1!)00 tho sales amounted to ,£29,760 and'.the net profits to £1,605 1005 l , JE60.805 „ „ ». " jmo " „ ' £80,812' „ ~ .» A 026 "jit* " „ J8108.857 » A 033 ;; i9i9 ;; " „ £156,903 „ „ „ PROSPECTS OF COMPANY. : Commentinc on the issue now offered to the public Mr. Geo. T. Booth, Chairman and Managing Director, writes:— «'t n Tuferrioe during the war, to the prospects of this Company's business especiullv in the "period subsequent to the cessation of hostilities, I_said : ®' a P is Ins been tlio development of this Company s business in the past, there uul hi IrLter ODMrKinities than ever in H'o near future. Now is tie time to prepara for the expansion which will undoubtedly follow the war. And .it,ls up to New Zealand to 6eo that her industries and commerce are adequately supported by local capital and the profits, retained, iu. the country to swell our own national wealth.' , "The war has happily come to an end. and we are experiencing the expansion that I anticipated. Never have the prospects ahead of - New, Zealand been so briizht There is an absolutely insatiable demand for almost ril oi"', pro-duct., at prices that wouli have seemed incredible a few years ago. And this demand is not a flash in the .pan. There will be no < considerable falling-off until the world now starving, not only for food and dotlung, but for practically all kinds of goods, materials, and services, is adequately fed and clothed and provided for. And that time is too far distant for calculation. Production still Ingfl lamentable 'behind requirements, and thoro can'be no appreciable alleviation of supply catches up with, demand and. the world's wants are reasonably satisfied ' ': "To that end every farm should be worW to its utmost capacity, every, factory should increase its output, every ship should be driven faster. "We ft'e trvinir to do our share. We are employing more men and constantlv installin" new machinery of the most improved type for rapid and economical production. And our efforts are being rewarded by a of orders that more than taxes our present capacity. AYe want to do more and still more. But expansion involves more and more capital. The weekly wages bill is much higher than it was. A given quantity of raw materials, which it is "' to carry in stock, costs from twice to foul' times what it did before Every increase id turnover involves the usb. of additional capital. REASONS FOR INCREASE OF CAPITAL. In addition to the increased amount required as a result of, larger turnover another important development, requires further capital. In new of tho icry great demand for agricultural- machinery in the northern portions of the Dominion, tho Company has decidcd to. establish a factory in Auckland for tho manufacturj of its products, and hfs already secured a suitable area of land for tho nnrpose. The erection of the buildings and plant will be proceeded as rapidlv as possible, and a considerably enhanced demand will no doubt "suit, while the saving in freights. will be very great. Moreover, the difficulties of shipping ftom tho Southern factory will be obviated. TERMS OF ISSUE. The shares are of two classes-Preference and Ordinary. Tlu former are fully preferred, both as to dividend and capital, and nrs entitled to 6 per cent. per . annum, paid half-yearly in March and September. Dividends on tho latter are pttid in March of each year. Under New Zealand law both classes of dividend are.free,of Incomfl Tax, Both claswe of shares are offered at par, and will stand on the same footing respectively as existing share capital of their class, and dividends will accrue frcim dates on which payments are received. Subject to n payment of 10 per cent, on the nominal value of a share on application, payments may bo made in one sum or in four equal instalments at intervals of three months from the dato of allotment. Applications will be dealt with' in order of their receipt. N Conic, qf the Prospectus and Forms of Application may be obtained from the Head Offiec of the Company at Christchurch, or from any of its branches. To the Directors of BOOTH, MACDONALD AND CO., LTD. Gentlemen, r Ordinary I hereby request you to allot me j v. Preference Shares in the above-named Company upon the terms of the s Prospectus, dated tho 15th day of June, 1920, and I hereby agree, to accept the same or any smaller number that may be allotted to me. and I herewith hand you the sum of £.. bc'M a deposit of Two Shillings a Share on Shares' in the above-named Company and agree to pay the balance of 18s. per sharo as provided by the said Prospectus, and I autTioriso you to register me as the holder of the 6aid Shares. Name in Full > • (Plca6e state if-Mr., Mrs., or Miss) Address ' Description Date) - Signature