Page 10 Advertisements Column 1

Evening Post, Volume C, Issue 36, 11 August 1920, Page 10

A Splendid Opportunity ISSUE OF 10,000 ORDINARY AND 10,000 6% emulative Preference SHARES OF gl- EACH , /. 1. . ; „ "..., ; '.. ":..,, „ '.. .-." ■ (Registered under the Companies Acts), MANUFACTURING ENGINEERS, MAKERS AND IMPORTERS OF FARM MACHINERY. ; . . : HEAD OFFICE AND WORKS: Carlyle Implement and Machine"* Works; Christchurch. Authorised Capital ......... „.....;.... £200,000 - Ordinary Capital, paid up ... ... ... ... £68,245 Preference Capital, paid up , £77,003 Profits in. Reserve ... .... .»• £17,621. DISTRIBUTING BRANCHES: ■ Aghburton Auckland Dunedin Gisborne.::.:.'" , '.Hamilton Hastings ■ Masterton New Plymouth Palmerston North Timaru BOARD OF DIRECTORS: GEO. T. BOOTH, Chairman and Managing' Director. ; SIR GEO. CLIFFORD, Bart. (Chairman of Directors, Canterbury' Frozen Meat Co.) J. A. PANNETT (Chairman of Directors, N.Z. Farmers' Co-operative Association) HUGO FRIEDLANDER, Auckland J. W. HARDING, Waipukurau GEO. M. HALL, Sales Manages PETER TROLOVE ,';., ■ . , ■ * BROKERS: Any Member o£ the Associated Stock Exchanges of New Zealand. X Business and Assets of the Company. Booth, Macdonald & Co., Ltd., are engaged chiefly in the manufacture and sale of farm machinery. The firm's Ploughs, Harrows, Windmills, etc.,, are at'work on thousands of farms from the North Cape to the Bluff, helping to produce_ food and clothing for the world. And they are pouring out of the factory and depots at the rate of thousands per year. The headquarters are in Christchurch, and occupy three acres of land, while the firm has freehold or leasehold premises in ten of the principal distributing cities and towns throughout the Dominion. In addition, the firm controls the sole New Zealand distributing agency for a number of widely sold machinery and other lines. ' ' ' '.:. '..":'..." ...,'.;." -.-Booth, Macdonald & Co., Ltd., specialise also in the supply- of-machinery lor_ road making and similar purposes, and to that end have personally and i periodically searched the markets of the world for the most improved machines and methods. Its effortsto serve and. assist local governing bodies in their plans for-opening up inaccessible country and improving transportation facilities by the construction and naintenarice of good roads are appreciated. " ' •_ . ...'.V '.'.",',., The following figures show how the assets have increased in the'last'fiye years: — Freehold Plant, . ' ■ ' Property. Tools, etc. ' Stocks. - Total Assets. £ £ £ '." .' £ 1914 ... '21,246 16,200- 61,863 '132,946: ' 1919 ...' 43,424 30,149"' 127,250 276,922 Increase" £22,173 £13,949 £65,387 £143,976; Properties are taken at book values, after annual depreciations .'.: have been written off. Present market value of properties is several .thousands of pounds higher.* The same applies to plant. It is maintained in perfect running order at the expense of current revenue. In addition, substantial amounts have been written off" ."mnially for depreciation.' ' Booth, Macdonald & Co., Ltd., have the finest plant of its kind in the Dominion, and it is safe to say that it could not be replaced to-day for less than double the amount stated above. . Stocks are taken at cost price or less, and in many cases at considerably less than present market values. - . ', „ .", ' ",-""~ ':.,' The total assets are sufficient to pay off all liabilities (exclusive of capital) three times over. Booth, Macdonald & Co., Ltd.,'hare never missed •paying' a dividend. During the Company's existence it has paid out £93,1/06 to shareholders in dividends. Growth of Business and Profits. The following figures show that the turnover of the business has increased fivefold since 1900, and that net profits.have kept pace :— Id 1900 ihe sales amounted to £29,760 and lie net profits to £1,605 „1905 „ „ ,-„'■ £60,805 V „ „ £4,248 „ 1910 „ „ ■■•„■ £80,812 „■ '■ -■■;,■ ■'„• £6,028' „1915 „ „ .„ £108,857 „ „ „ £9,033 „1919,, „ „ £156,903 „ „ „ £12,839 Prospetts of Company. Commenting on the issue now offered to the public, Mr. Gco. T. Booth, Chairman and Managing Director, writes :— " In referring, during the war> to the prospects of this Company's business, especially in the period subsequent to the cessation of hostilities, I said :'Rapid as has been the development of this Company's' business in the past, there will be „greater opportunities than ever in the near future. .Now is the time to. prepare for- the expansion which will undoubtedly follow the war. And it is up to New Zealand to see that her industries and commerce are adequately'supported by local capital, and the profits retained in the country to swell our own national wealth.' "The war has happily come to an end, and we are experiencing the expansion that I anticipated. Never have the prospects ahead of New Zealand been so bright. There'is an absolutely insatiable demand for almost all cur products, at prices that would, have, seemed incredible,a.few years ago. /And this demand is not a flash in the pan.' There -will- be-no considerable falling-off until the world, now starving, not only for food and clothing, but for practically all kinds of goods, materials, and services, is adequately fed and clothed and provided for. And that time is too far distant for calculation. Production still lags.lamentably behind requirements, and there can be no appreciable alleviation of- existing conditions until supply catches up with' demand and. the 'world's 'wants are reasonably satisfied. "To that end every farm should be worked to its utmost capacity, every factory should increase its output, every ship should be driven faster. " We are trying to do our share. .We are employing more men and constantly installing new machinei'y of the most "improved type for'rapid and economical production. And our efforts are being rewarded by a flow of orders that more than taxes our present capacity. We want to do more and still more. But expansion involves more and more capital. The weekly, wages bill .is'much higher than it was. A given quantity of raw materials, which it is necessary to carry in stock, costs from twice to four times what it did before the war. Every increase in turnover involves the use of additional capital." Reasons for Increase of Capital. In addition to the increased amount required as a result of larger turnover another imooitant development requires further capital. In view of the very great demand fd 1 agricultural .machinery in the:northern portions of the Dominion, the Company has decided to establish a factory in Auckland for the manufacture of its products, and has already secured a suitable area of land for the purpose. The erection of the buildings and plant will be proceeded with as rapidly .is possible, and a considerably enhanced demand will,,no.doubt'result," while the saving in freights will be very great. Moreover, the difficulties of shipping from the Southern factory will be obviated. ' Terms of Issue. The shares are of two classes—Preference and Ordinary. The former are fully preferred, both as to dividend and capital, and are entitled to 6 per cent/ per annum, paid half-yearly in March and September. Dividends on the latter are paid in March of each year. Under New Zeaknd law both classes of dividend are free of Income Tax. Both classes of'shares are offered at par, and will stand on the same footing respectively as existing {share capital, of their class, and dividends will accrue from dates on which payments are received. ', '. .. Subject to a payment of 10 per cent, on the nominal value of a share on application, payments may be made in one sum or in four equal -nstalments at intervals of three months from the date of allotment. Applications will be dealt with in order of their receipt Copies of the Prospectus and Forms of Application may be obtained from, the head office of the Company at Christchurch or from any of its branches. To the Directors of BOOTH, MACDONALD & CO., LTD. Gentlemen, ■>■ C Ordinary I hereby request you to allot to me j . (. Preference Shares in the above-named Company upon the terms of the Company's Prospectus, dated the 15th day of June, 19Z0, and I hereby' agree to accept the tame or any smaller number that may be allotted to me, .and I herewith khand you the 3um of £ , being <i deposit of Two Shillings a Share on Shares in the above-named Company and agree to pay the balance of 18s. per share as provided by the said Prospectus, and I authorise you to register me as the holder of the said Shares. . '■'■.'/.' : : Name in Full (Please state if Mr., .Mrs., or Miss) Address -' Description Date Signature ...,....,.., , • l. ;