J. C. WILLIAMSON, LTD.

Dominion, Volume 32, Issue 81, 29 December 1938, Page 12

J. C. WILLIAMSON, LTD.

Changes In Balance-sheet

The ino«t noteworthy feature in the balance-sheet of J. O. Williamson Ltd., issued as at June 30 last, is that the item "leasehold properties, scenery, properties, wardrobe, manuscripts, copy rights, expenditure on pieces not yet produced, goodwill. etc. (at cost)” amounting to £256.230, has been replaced by an item designated “copyrights, , etc., at valuation,” £30,000.

This was brought about by the fact that in June last the company transferred the theatrical side of its business to a new company, to which it leased its theatres, etc., and granted a licence to use the copyrights for a period of 21 years.

According to the directors’ report, £187,605. representing lost assets, including leaseholds and goodwill, was written off to reserve account.

The net profit for the year disclosed by the accounts is £26.471, out of which preference dividend at the rate of 6 per cent, per annum required £10,200. leaving a surplus on the year's profit of £16.271. Ordinary shareholders also received a dividend of 6 per cent, for the year ended June last, which required £22.500, which was paid out of special reserve account. In this special reserve account there appears to have been an unexplained addition of £9861 during the year. The directors in their report stale that the board is contemplating a complete revaluation of the company's assets on a conservative, basis with a view to a reconstruction of the balance-sheet.