McKENZIE’S STORES

Dominion, Volume 33, Issue 195, 14 May 1940, Page 10

McKENZIE’S STORES

Increase In Net Profit DIVIDEND UNCHANGED The trading profit of McKenzies Department Stores, Ltd., for Ibe year ended March 31, 1940. is shown nt £87,589, compared with £81.863 last year, £8u,352 in 1938, and £80,006 for 1931. The dividend is unchanged at 14 per cent. 'l'lie directors report that all stores operated successfully. The trading companies maintained their position, in spile of the very great difficulties which beset them. Import restrictions have operated very adversely, ami the companies have been forced to rely to a, greater extent ou local manufacturers. The war, naturally, has added materially to the company's difficulties. The consolidated balance-sheet shows that the trading profits for the year ended March 31. 1940. were £87.589/2/11, after providing for all known contingencies and taxation.

The profits and dividend statement shows profits carried forward from 1939: Trading companies, £55,621/1/5; McKenzies Department Stores, Limited. £51,815/3/4, a total of £107,436/4/9, less dividend paid June. 1939, £35,000,. and less additional income tax. since paid in respect of year ended March 31, 1939, £9155/10/9, leaving £63,280/14/-, To this is added profits for year ended March 31, 1940, £87,589/2/11less dividend paid December, 1.939, £35,373/5/7; leaving £52,215/17/4. To this is added excess of receipts (excluding dividends) over expenses in profit and loss account of McKenzies Department Stores, Ltd., to May 5, 1940. £573/11/8, leaving a balance of £52,789/9/-. The proposed final dividend of 7 per cent, will require £35,000, leaving to carry forward from this year’s profits £17,789/9/-. The total to be carired forward after payment of proposed dividend, June. 1940. is £Bl,o*o 3/-. An interim dividend ot i per cent, was paid in December, and the directors now recommend a final dividend of 7 per cent., making 14 per cent, for the year. .the dividend, which will be free in shareholders’ hands and not subject to further social security tax, will be paid to those on the register as at -June 12. Undistributed profits to £81,Oil) 3/- will be carried forward. The retiring directors, Mr. T. B. Guscott and Mr. J. E. Ramsey, offer themselves for re-election. Paid-up capital is unchanged at £500,000. Share premium reserve stanus at £155,551/5/-. The directors state that. the taxation reserve last year was insufficient to coyer the war tax levied on last year s profits. The company has paid £9155 adidtioual tax in respect, of last year, and the directors have provided £95,130 as tax reserve to cover assessments in respect of the year ended March 31. 1940. Freehold'land and properties, at cost, represent £269,702. less mortgages £93,J94. Depreciation amounting to £14.311 has been provided, leaving a net. asset value of £161.391. ■ . The directors ask approval of their action in voting to tiie New Zealand Government the sum of £lO,OOO as a loan free of interest for the duration of the war and 12 mouths thereafter. OAMARU WOOLLEN CO. Interim Dividend Payable The Oamaru Worsted and Woollen Mills, Ltd., have advised the Stock Exchange Association that the directors have declared an interim dividend of 3 per cent., payable on June 6. Transfer books will be closed from May 24 to June 6, inclusive. - The company made a distribution ot t> per cent for the last financial year.