FROZEN PRODUCTS, LTD.

Dominion, Volume 28, Issue 284, 28 August 1935, Page 12

FROZEN PRODUCTS, LTD.

Dividend, 2 Per Cent.

The eleventh annual general meeting of shareholders of Frozen Products, Ltd., was held at Wellington yesterday. There was a large attendance. In presenting the report of the directors and the annual accounts for the year, Mr. Will Appleton, chairman of directors, gave a general survey of the company’s operations for the last twelve months. He said that it gave him pleasure, not only to report comparatively sat-sfactory results for the year, but to be able -to sound an optimistic note in respect to the future. Conditions last summer were good, resulting in a very much improved turnover. Unfortunately, the price-cut-ting evil had been rampant, and on this account it had been difficult to make satisfactory profits. In keeping with most other articles, the sales of ice cream had ■been seriously affected by the depression, and on top of that there had been a succession of bad seasons. As the result of last year’s trading, however, it bad been possible to wipe out the last of the accumulated losses amounting to £1524 18/8, make full and adequate provision for depreciation tx> the extent of £2740 4/3, write off bail debts £l9l/8/5, preliminary expenses £5O, and provide an income tax reserve of £661. The remaining net profit for the year was £2839 0/10, which, after deducting the balance of accumulated losses, left a net amount of £1314/2/2 in the appropriation atcount. The directors, therefore, had. pleasure in recommending the payment of a dividend of two per cent. It, 1 was pointed out by Mr. Appleton that the liquid position of the company had improved very materially during the last few years. In the mortgage account there was a flat mortgage of £l5000, but the table mortgage, which was originally £9OOO, had now been reduced by repayments of principal to £7631/5/-. The bank overdraft on No. 1 account now stood at £4731/14/-, which was £2245 18/9 lower than last year. The No. 3 account (cool store building), which now stood ■at £1167/2/2, had been reduced during the period by £423/11/10. The engineering account, which had been specially arranged to provide for contract trading, stood at £497/0/7. Altogether, the total bank overdraft was £6395/16/9, or £2172/10/- less than last year. In the cool store department, said the chairman, the returns for the past season were £3255/15/3, an increase of £865/3/3 for the year. The trading department had also shown an increase of £252/17/3. The director's, said Mr. Appleton, had gone very carefully into the question of the development of the company’s business, and it had been decided, after close examination, to purchase a block of land in the heart of Hastings for the erection of a modern cool store and the provision of the necessary plant to carry on the company’s business in that area. It is intended that n new company should be formed and to invite capital from Hawke’s Bay. t*ie idea being that Frozen Produets, Ltd., will hold a substantial interest in the new concern. With the completion of tile new harbour at Napier, it is considered that heavy business will be offering, not only for cool storage, but for the pre-cooling of fruit for export to the Home market. The building will also contain iee-cream hardening room facilities from which it is proposed that the company's products shall be distributed. The chairman indicated that he had every confidence in the future of the company. He pointed out that despite the depression the capital of the concern was Intact, all accumulated losses had been written off, and provided normal conditions were encountered he thought that the payment of larger dividends would b - * possible in the future. The motion for tliA adoption of the report mid balancesheet was seconded by Mr. R. 11. Ellis. Several shareholders spoke to the motion. and the directors’ action in recommending a dividend of two per cent, was confirmed.

The retiring director, Mr. Will Appleton, .was re-elected unopposed, and Messrs. Watkins, Hull, Wheeler and Johnston, the retiring auditors, were also re-elected. A special tribute was paid to the work of Mr. Fisher, the manager, and his staff.