KAIAPOI WOOLLEN COMPANY

Evening Post, Volume CII, Issue 37, 12 August 1921, Page 8

KAIAPOI WOOLLEN COMPANY

ANNUAL REPORT

The forty -third annual report and bal-ance-sheet of the directors of the Kaiapoi Woollen Manufacturing Company, Ltd., states that the sadden and altogether unexpected collapse of the markets of the world has resulted in huge losses to many trading concerns in this country. "Daring the past six months the country has been flooded with goods of every class, 'which, in many cases, have been sold at prices far below replacement 'cost from Home manufacturers, resulting in a serious dislocation of trade unparalleled in the history of this Dominion. In the report of last year, your directors referred to the uncertainty of national finance, and that the finances of this company should be strengthened to meet any emergency. It was seen that sooner or later a set back would take place, although no one anticipated such a sudden and crushing collapse in the trading conditions of the world. This company.has not escaped, but the policy antiounced last year has enabled the directors to keep the.company's finance well in hand and without resorting to any further increase of capital or calling up the balance of the uncalled capital. "Your directors consider it to be their duty to make special 'reference to the ever-increasing burden of taxation. It is quite clear that the present rate of taxation cannot be met without serious results to business.

"The actual earning as shown by the balance-sheet is considerably less /than the previous year, but this is entirely due to the necessity for the ( adjusting of stock values. ' This adjustment had to be faced consequent on the falling market. During the year the lease of the Wellington warehouse expired. A new lease could not be obtained on satisfactory terms, but the owners, in view of the company's long tenancy, offered the first refusal of the purchase of the whole block.' After careful consideration, your directors decided to purchase,* and the company now possesses one of the finest and most central blocks in the business part of the city of Wellington. The increasing demand for the company's products has necessitated a development in the Southland district. Very suitable business premises have been leased, and a branch warehouse opened at Invercarpill. Additions are to be made to the Kaiapoi ■ mill for the installation of ne\v' machinery." '

The directors having realised the necessity for providing a hostel for the accommodation of. young women, who have no fixed residence in Kaiapoi, a very suitable building has been purchased, is now ■ being furnished, and, when opened, will be under the control of the Y.W.C.A. The anticipations of' the directors with regard to the employees' welfare scheme have been fully maintained, and it is with the greatest pleasure and confidence that the board recommends the shareholders to agree to a further contribution of £1000 to the Employees' Welfare Reserve Fund. This scheme has been properly instituted and the board' of trnstees appointed. , There is 1 'ne beneficiary on the funds, an old and most trustworthy officer. The report states:— It gave the directors great pleasure to say, in the name of the shareholders, how delighted they were to have. 1 the opportunity to recognise such faittiful service extending over a period of ■'forty' and further to express the hope that the annuitant may live for many years to enjoy a ■ well; earner' rest." ■ -:■-.-■ y- :>.

It is with' very deep regret that the retirement of Mr. William Bansom from the directorate'of 'the company is announced.- Mr.,Sansom was one of the original promoters of the company, and shortly after its registration was appointed a director, a position which ha held for considerably over forty years. Mr. W. C. Bean was appointed to fill the vacancy on the board. ' ■, The balance to the credit is £38,164 17s 3d. Of this, the directors recommend a dividend of 8 per cent. p.a. to ordinary shareholders, and to preference shareholders 7 per cent, p.a., less the amount already paid as interim dividend. Credit balance after payment of interim dividend, .-624,851 14s 4d; dividend for year £27,852 10s Id, less interim dividend paid, £13,313 2s lid; making £14,539 7s 2d. Reserve for income tax, £5000; reserve for employees' welfare fund,: £1000,-' carried' forward, £4312 7s 2d.

The retiring directors are Mr. James Jamieson and Mr. W. C. Bean, who submit themselves for re-election. Messrs. T. H. Caverhill and W. S. Newburgh offer themselves for re-election. Various items in the latest balancesheet, compared with those for 1920, are as follow:— i ■ •' • 11 , 1921. 1920: .-•■'• I"'* £ Capital called up 376,265 300,000 iUncalled capital ...... 75,000 — Sundry creditors and deposits 224,907 103,187 Reserves accounts '..;.- 185,720 154,714 Property and plant... 167,604 124,345 Book debts 75,900 106,718 Manufactures, wool, materials 523,822 319,613 Payments against goods in bond 'and ■ transit 47,091 11,070 Interest, discounts, salaries, repairs, • maintenance, etc. '... 88,480 54,796 Balance to profit and loss 38,164 60,473 Dividend, ordinary „. 8 p.c., 10 p.c. Dividend, preference ... .7 p.c. 9 p.c. The dividends for 1920 as given above include a bonus of. 2 per cent, on ordinary and preference shares. : j