LOAN AND MERCANTILE DEVELOPMENT.

Evening Post, Volume CXIII, Issue 4, 6 January 1927, Page 11

LOAN AND MERCANTILE DEVELOPMENT.

(From Our Own Cbrresporid«nt)

, ": ':■ LONDON, 30th November r Accompanying the annual report of the N«w an h anl ua ¥ercantile Agency, is a proto £ 2^o!ooo;^f )rfi to lncreas^ thß: cap"^

They. ;state that extension of the company's business, especially in Australia, calls for.additional capital, without which the normal requirements of its increasing connections can.not.be fully satisfied. The directors have accordingly decided to recommend the Btockliolders to sanction an Increase of the capital of the company by the creation of 500,000 six' and a half per cent, cumulative second prefer-" enca.shares at £1 each, which will be issued at par, and.when fully paid will be converted into stock. ■ • ■'■.•■

Applications for the new shares from the existing ordinary and preference shareholders will receive preferential consideration. The present authorised and issued capital is'"£2,ooo;----000. in equal parts of preference and ordinary stock., A gross profit of £616,013 is shown by the accounts, which cover the year to 30th June. 1926. This compares with £595,032 for the previous year, and after again writing £10,000 off premises arid meeting all expenses, the net profit was £203,041, as against £209.889. . : '•;: ■ .•••.:• ...

Interest on the debenture stocks takes £68,000. and £10,000. is again placed to'staff benevolent fund. The directors propose a final dividend of 4 per. cent;, making 1 per cent., the samo as for 1924-25, leaving to carry forward £45.286. as against £39,645 brought in. ■ .

"Tho.: New: Zealand Loan and Mercantile Agency Company has a wider sphere of operations . than its title implies," remarks tho

"Financial Times." "It is in connection with the growth of the company's activities in Australia, In fact, that the proposal is: made to issue new capital Since the statement Is volunteered that without this additional capital the normal requirements of the company's increasing connections could not be satisfied,' the prospect of full employment: for tho fresh funds may be regarded as assured. They should add to the productivity of the ordinary capital by bearing a. lower rate than it receives, and yet, by ' recognition In the terms of existing rates for new capital, represent a very welcome investment." ■