SELFRIDGES RESULTS

Dominion, Volume 31, Issue 204, 26 May 1938, Page 14

SELFRIDGES RESULTS

Heavy Loss In Australia

MOVE BY SHAREHOLDERS

Selfridges i Ausiralasiaj. Limited, reports a net loss of £21,2(3 lor the year ended Ju unary 31. compared with net profits of £14.187 the previous year am! £5873 for 1935-36. Au interim dividend <>l I._I,"JL paid in September required -' u linal dividend is recommended. I lie previous year's distribution was 6 per cent. A credit Of £202 remaining after payment of the interim dividend reduces the debit balance to £21.07(1. and this has been written off against share premium reserve, reducing that item to £0(179 I luring the year £9OOO. representing additional costs in consequence of new awards, and expenses associated with the chain store inquiry, was charged io general expenses. Depreciation provided (including^amortisation of leases') amounted to £SO34. The reserve of £27.250 in connection with promoters’ shares in Selfridges (N.Z.), Limited, shown in last year', balance-sheet, has been reduced by £U,>O. shares in the New Zealand company to that par value being applied m satislaction of the consideration agreed to lie paid by the company when the New Zealand company was being formed for the purpose of bringing about the wmdingun of an opposition company registered in New Zealand under the name of fee - fridges (New Zealand) Limited, winch prevented the trading in _ New Zealand under the name of Seltridges IN.Z.) Limited. . . The report states that the lofts w made in spite of a substantial increase in turnover. It was disclosed alter stocktaking, and was contrary to the board’s expectations. It has been investigated, and the result ot the investigation will be disclosed at the annual meeting. n . Earnings Subsidiaries.

The company is in a financial position, the report adds. The stores are receiving increased patronage, sales being greater by 8 per cent, than those of the previous year for the same number of stores. The increase has been augmented by the opening ot additional Un paid-up capital is £235.788. There is a reserve of £41,000 created in connection with the acquisition ot promoters’ shares in other companies. Creditors are owed £99,478.. Among the assets, leasehold property is valued at £56,966, plant and fittings at i04,0U~, stock at £123,778, goodwill at fioOO, branch establishment account at i 960.), and expenses in connection with issues ot share capital at £3OOO. The company s interest (shares and current account) in Selfridges (W.A.), Limited, is shown at £42,897, and in Selfridges (N.Z.), Limited, at £57,483. Selfridges (W.A.), Limited, began trading on September 16, 1937, and made a net profit for four months and a half to January 31 of £1526, after setting aside £330 as provision for taxation. The profit is carried forward. Selfridges (N.Z.), Limited, began trading’ on October 28. Its net. profit for two months and a half, after providing £ll6 for taxation, was £598. This is carried forward. , , The directors believe that prospects are bright for both subsidiaries. The balance-sheet cf Selfridges (N.Z.I Ltd. as at January 31 shows paid-up capital, including calls paid in advance, nt £116.035, sundry creditors, bank overdraft. accrued charges and provision for taxation £45,095. Assets are shown as follows: Freehold property, at cost, £6884; plant, furniture, etc., at cost less depreciation, £14,635; sundry equipment, at cost, £2408; cash registers, at cost less depreciation and less instalments not yet due under hire purchase agreement, £1058; leasehold properties, £32,oZb, stock, £38.161: prepaid charges and sundry debtors. £9039; trade marks. £obl cash £3263; establishment account, £13.471; goodwill, £35,000; brokerage, £1554; preliminary expenses. £36 it. The balance-sheet of Selfridges (YV.A.) Ltd. as at. January 31 shows paid-Up capital at £72.142; sundry creditors, £33.(69. Assets include lease and building, £29,829; plant, furniture, etc., £11,113; cash registers, £6850; shares in feelfridges (Australasia) Ltd. and W.A. Shipping Association Ltd., £6437; stocks, £20,68;>; sundry debtors. £618; cash, £3ul; goodwill, £20,250; establishment: account, £10,621; preliminary expenses, £682. Included in the assets of Selfridges (Australasia) Ltd. is £19.863 for cash registers (at cost less depreciation and less instalments not yet due under hire purchase agreements). The balance-sheet of Selfridge’s (W.AJ Ltd. shows cash registers at £6850 and that of Selfridges (N.Z.) Ltd. shows cash registers at £lot>B. Shareholders’ Circular. Ten shareholders, claiming to hold and represent between them shares totalling £40,000, have issued a circular setting out what they believe should be done to rehabilitate the company. Among their suggestions are the reelection of the chairman, Mr. E. C. B. Midlane, and increase of the directorate from five to seven by the addition of “men with long experience in merchandising and accountancy,” and the revision of the managing director’s employment agreement, which they be'ievc should lie made an annual one. The 10 shareholders state that the majority of the directors lias undertaken to nominate and elect to the board Messrs, J. A. Carpenter and John YV. Austin, after the shareholders have increased the board to seven.