SUCCESSFUL TRADING

Dominion, Volume 32, Issue 66, 10 December 1938, Page 14

SUCCESSFUL TRADING

Todd Motors Corporation Ltd

RESULTS OF OPERATING COS.

The report of the directors of the Todd Motors Corporation, Ltd., for the period ended November 15, 19oS, which was adopted at the first annual general meetin- on Thursday, stated that the comnanv assumed control of the two operating companies as from May 16. I‘or the period under review, the net profit ot £112.807/2/2. subject to income tax, was shown by the operating companies, the following statement shows the position in detail. , ... , Todd Motors, Limited: '.Hie profit and loss account for the year ended September 30, 1938, shows a net. profit of £9O 952/1/2, subject to income tax. Ot this sum.' £38,220/12/9 has been transferred to capital reserve account in terms of tile pros- ectUS of Todd Motors Corporation. limited, and provision of £3S 700 has been made for taxation. I his leaves a balance of £20,025/11/5, which has been transferred to the corporation. Todd Motor Industries, Limited: The profit and lops account for eighteen months ended September 30, 1938, shows a net profit of £15,854/18/-, subject to income tax. Of this sujn, £5402/16/3 has been transferred to capital reserve account and provision of £7823/13/9 has been made for taxation. The net balance of £2628/8/- has been transferred to the corporation. From t b e total of £22,603/19/a so transferred £15,000 has been placed to the credit of preference dividend equalization account,.. £3104/10/9 is required to pay dividend on preference shares allotted to date, and £lO3/0/2 to pay small accounts. It is recommended that £3OO be set aside as provision for directors’ fees for the past six months, and the balance £4145/16/6, paid as a dividend to ordinary shareholders. Reviewing the accounts, Mr. Charles Todd, managing director, said the net profits of the operating companies tor the financial year .totalling £112,807. compared with £110,273 earned by them for the 12 mouths ended September 30, 1931. "The last half-year’s results of the operating companies do not show profits equal to the half-year ended March 31, 1938. The winter months are never as good as the summer for the sale of cars, and, in addition, the war scares and Parliamentary elections retarded sales during the latter period. Still, the net profit of £38,677 for the half-year, subject, to income tax, is very satisfactory, enabling the directors to place to the preference dividend equalization account a reserve for a full year’s preference dividend in addition to payment of the required sum for preference dividend for the broken period, and leave £4145 available for dividend for ordinary shareholders. Remember also that during the year a capital reserve of £43,629 was established out ot profits. “Sales of new and used cars are now on an increasing scale, and you will be interested to know that sales of new vehicles for the month of November have exceeded the sales of any other one month of 1938, and on present showings the shareholders can confidently look forward to a profitable year which I anticipate will result in the preference dividend equalization account being increased to (he total of £30,000 as provided in the prospectus, with sufficient to pay the 6 per cent, preference dividend, a reasonable dividend to ordinary shareholders, and a balance to establish additional reserve accounts.” . The balance-sheet shows that the ban!: overdraft compared’ with the overdraft at March 31, 1938, is reduced by £83,313 —from £129,26-1 Io £45,95.1—whi1e the bills payable on cars and trucks P'lrj-’I&T ed stands at £46.085, as against £10,830. Ou the assets side there is an item of £175,117 representing bills receivable. From this has been deducted £19,020 as a reserve for unearned interest and t° provide for other contingencies. In addition to the original capital of the operating companies, there is now the capital reserve of £43.629. Deferred profits account now stands at £38,461. The buildings, plant, equipment and furniture have been depreciated on a liberal basis. Stocks have been prudently valued. The total holdings of used cars and trucks have been taken into stock at £8423, which represents IMW than 14 days’ normal turnover of such vehicles. The directors’ recommendations were adopted. , x The following directors were re-elect-ed : Messrs. Charles Todd, Edwin P. Yaldwyn. John M. A. Hott, C. I’. Todd. D. 11. Todd, B. J. Todd and Andrew Todd. London Wool Sales By Telegraph.—Press Assn.—Copyright. LONDON, December 8. H. Dawsons, Sons and Co., Ltd., in commenting on the London wool sales just concluded, remark that the large proportion of merinos somewhat severely tested the absorbing power of the market at a rather critical time. Happily, no serious decline in values was shown in the returns, although there was some irregularity, , . Manufacturers covered their urgent requirements, but no doubt they will want further supplies in the New Year. Government orders assisted the demand for crossbreds, which were also reflected in the demand for New Zealand wools. Bradford Tops Market By Telegraph.—Press Assn.—Copyright. LONDON, December 8. The Bradford tops market is steady, there being increased business with more confidence reflecting firmness overseas. 'To-day’s quotations compare with those previously cabled as follows: —

♦Nominal. Rush For U.S. Dollars By 'telegraph.—Press Astsn.—Copyright LONDON, December 8. A fresh wave of nervousness is being experienced as regards international politics and the colonial issue. This has caused a rush to buy dollars. The authorities in London and Paris are being forced to support sterling and the franc heavily.

Nov. Nov. Dee. Dee. Merinos— d. d. d. d? 70's 21 27 27 27 64's ..... ... 25i 251 25 4 254 GO’s ... 214 241 244 24 i Crossbreds— 58’s ... 21$ 21| 214 214 56's ... 19 19 19 ' 191 50's ... 17 17 17 17 46’s ... *16 *16 *16 *16 40’s ... *16 *16 *16 *16