WELLINGTON WOOLLEN COMPANY

Evening Post, Volume CXII, Issue 39, 14 August 1926, Page 12

WELLINGTON WOOLLEN COMPANY

ANNUAL REPORT

DIVIDEND OF 10 PEP. CENT.

The balance-sheet of tlio Wellington Woollen Manufacturing Company i'or the year endod 30th Juno shows a gross profit of £68,398 Is Stl, and a not profit of £2.0,453 lls Od. Tlio directors recommend a further dividentl of 5 per cent., making 10 per cout. for tlio year. Tlio 43rd annual report, signed l>y tlio chairman of directors, Mr. W. 11. P. Barber, records "a fairly satisfactory result, although the iinnncinl period during the latter half especially, has been one of marked difficulty, a condition common to other manufacturing and trading institutions. Tho balancesheet shows that, after providing £5000 for depreciation of plant and buildings —which, as usual, h.ivo been ivoll maintained out. of revenue—and tho carrying to reserve of £2000, making that account £50,000, tho directors aro able to recommend that a further dividend of 5 per cent, be paid on both ordinary and preference shares; tho balanco tlion remaining to be carried forward. During the year the company's holding of New Zealand Government Inscribed Stock vras sold, and the balanco of the unused provision for discount thoreon, £7292 2s 6d, became available. In view of the unsettled state of trading conditions genorally, the directors deemed it advisablo to transfer the amount to the credit of manufactured stock,'ivhich has been written down by that sum." The profit and loss appropriation account shows that the net profit of £2!),----453 lls 9d was reinforced by £2111 Is 9d brought forward from the preceding year, and thus £31,564 13s Cd was made available for this year, of which £13,374 lls lOd has gone in interim dividend, £2000 has gone to reserve, and £16,190 Is 8d remains available to meet the further dividend and carry-forward. The profit and loss account shows that rates, taxes, interest, salaries, etc., amounted to £29,554 8s Id; maintenance, provision for bad debts, directors' fees, insurance, etc., to £8079 19s. The liabilities include capital £300,----000 (in 20,000 preference shares and 40,000 ordinary shares of £5, all called save £1 on 20,000 of the latter shares),* capital called (less calls outstanding)', £279,918 10s; reserve, £50,----000; fire insurance, reserve, £10,750; Bank of New Zealand, £104,660 19s lid; sundry'creditors, £42,721 19s 3d; employees' deposits, £2098 13s 3d. The assets include buildings, plant, and fittings at Petone, Wellington, and branches, which were valued at tho be- I

ginning of tho year at £222,328 17s 7d. Additions made during the year at a cost of £5681 9s 9d, and deductionof the amount (£5000) for depreciation as sot out in the report, leave this item at £223,010 7s 4d, which, plus £11,433 0s Id for "freehold land at Potono and Christchurch," makes £234,443 7s 5d in fixed assets of this character. The stock of "raw material, goods in process and at warehouse" has—by" the sale of Government stock and transfer mentioned in tlio report —been reduced from £228,482 Is lid to £221,189 19s sd. Sundry debtors and bills receivable amount to £65,238 Is, and a provision of £6883 16s 2d for bad debts and discounts reduces that figuro to £58,354 4s lOd.