Page 7 Advertisements Column 1

Evening Post, Volume CV, Issue 144, 20 June 1928, Page 7

' _ Copy of this Prospectus lias been filed -with the Registrar of Companie. at Auck. y-y -v !an« on tho 12th day of June, 1925. ABRIDGED PROSPECTUS OF I The Auckland Laundry, Limited I CAPITAL £30,000: 8% DEBENTURE STOCK, £25,000. li IME *|?,'S!!?„yi *% DEBENTURE STOCK IS NOW OFFERED FOR PUBLIC , SUBSCRIPTION ON THE FOLLOWING TERMS:— -: J/| in tha £1 on application and the balance on allotment, or 2/6 In the £1 on application and 2/1 on allotment, the balance beinc payable in 3 quarterly payments each of SI- in the £. 'V 1,000 tulty paid Shares will bo allotted to the Shareholders of the Auckland •■? oteam Laundry, Limited, in part payment for its plant and business aa ' , stated hereinafter, free from all liabilities. - . These ' are. classed as Deferred Ordinary Shares and shall not b« entitled to receive a dividend in any year until a dividend of 8% per annum shall have been paid on the Ordinary Sharee for that year. . 17,400 ORDINARY SHARES ARE NOW OFFERED FOR PUBLIC SUBSCRIPTION ON THE FOLLOWING TERMS:— ■■, - 2/G per Share on application and 2/6 on allotment, the balance of 15/-----per Share boing payable in calls of not more than 51- each at intervals of hot less than three months. . ' Investors desiring to pay their Shares up fully on allotment may no so, when the payment in advance of 15/- per Share will entitle them to receive interest on that amount at 1% per annum until the respective .-due dates of the'calls. liW Ordinary Shares have been subscribed in the Memorandum of Association. Each applicant for Debenture Stock shall be entitled to apply for Ordinary Shares «*r v In the proportion of 3 Shares for every £5 of Stock. ■'::"'■'\^. Application may bo made for either Shares' or Debentures only, but in the event of \2J'* r-subs|:,'IPtion, applications in the above proportion will receive nriority over all '„'„'„ TRUSTEE FOR THE DEBENTURI;;V- t DIRECTORS. HOLDERS. fiyV FREDERICK GRIMWADE BASKETT, of, ''"''"' &■;•" Auckland. Director and Secretary of GEORGE ARTHUR GRIBBIN, ef Aiickyl. Winstone, Limited. land. Solicitor. fy, . 'JOHN ERNEST CLOSE, .of Auckland, FRANK MARTIN WINSTONE, of Auck- SOLICITORS. i Merchant. NICHOLSON. GRIBBIN, ROGERSON A JOHN MCGREGOR, of Auckland, Director NICHOLSON'. Imperial "Building". Quee* of McGregor and Montgomery. Ltd. Street.. Auckland. \ HAWTYN STANLEY HARRISON^t Auckland, Company Director (Managing Di- i ' • -! y ■- rector). i MALCOLM GORDON McARTHUR, of INTERIM SECRETARY. Auckland. Solicitor. NORMAN ALEXANDER DUTHIE, P.P.A.N.Z.. 41, Shortland Street, AuckBANKERS. ■ land.: ' • THE BANK OF NEW ZEALAND. <> BROKERS. ,•' ■?''.. AUDITOR. G. STEWART CRAIG, LTD., ih Shortlan* (To be Appointed). Street, Auckland. P.O. Box 487. No Promoters' Shares have been or will be issued. No payment.it being made for •OMwill. No liabilities are being taken over. No Cash or other consideration has been or will be paid to any person to induce him to become a Director or Shareholder of the Company. THE OBJECTS OF THE COMPANY. • . The objects are:— ' 1. To acquire the business .now carried on by the Auckland Steam Laundry, .'. Limited, together with the plant as herein mentioned belonging to it, for the price of _10 t dOO, upon the terms of an agreement made between the vendor,company and G. A. Gribbin as trustee for the new Company. The agreement provides (inter alia) that the purchase price shall be satisfied by the payment of £4,000 in cash and the allotment of 6,000 Deferred Shares credited as fully paid-up. • 2. To purchase at the price of £2,600 a freehold site having an area of approximately li acres, situated at Surrey Crescent, Grey Lynn, and-having a frontage of 195 feet, with a total depth of 268 feet. . 3. TO erect on the new site propo3od to be purchased a modern fireproof building containing 30.000 square feet of space on one floor. Detailed plans have already been prepared, and the architect's estimate of cost is £15,000. - .4. To purchase and metal additional plant for washing, drying, cleaning and pressing. Firm quotations have already been obtained from the manufacturers' agents, and total the sum o£ J £12,000. The present plant will be transferred to the new premises for use in addition to the further installation. .5. To provide modern.delivery vans, in order to maintain a daily collection and delivery service in all parts o£ Auckland. MODERN LAUNDRY SERVICE. One of the chief objects of tho Company will be'to cater for the full requirements of family washing. This will include the collection of the entire household washing. and its return, washed, ironed and aired ready for immediate use. It will be charged for by weight of the flnished("and dried articles, at a price bringing it within the reach ■ ot every household. This will eliminate home ironing and drying for every class of material. ''■'.'•• It has been proved to the satisfaction of the Directors that there is very great scope • for such » service, which is now being demanded on all sides—a demand which cannot be met by'any existing Auckland laundry. THE SUCCESS OF THE EXISTING BUSINESS. The undertaking which was carried on by the" Auckland Steam Laundry. Limited, , -was originally established more than 25 years ago,' and has been conducted by the present management for the past s.years, the annual turnover being approximately £15,000, and the profits earned .having been satisfactory. ' In fact, .the net "assets of. the vendor Company are more than .twice the amount of its paid-up capital. ' ■' ' ' Tho present site in Belgium Street has become both too small and too valuable for factory purposes, while the existing facilities have become insufficient to cope with the business which is already offering, Without tha assistance of either advertising or eanvaiiinx. ASSETS OF THE COMPANY. . Upon completion of the present programme the assets of the Company will n II follows: — Land - - - : £2,600 Buildings - - - ■ - - - -- - £15,000New Plant - - - - -' « - , £12,000 Present Plant - - * -' -.• - . £10,000 '.■:..".'' ■■'.'' £39,600 It will thus be seen that the assets provide a very ample margin for the Debenturefielders.; ''.••' The'total capital outlay under'the above headings will amount to approximately" £30.000, the not balance of the present issue bejng utilised to provide further working capital. The effect of the erection of the new premises and the installation of the new plant will bo that (he.turnover can bo greatly increased with relatively small extension of the staff employed. '< •) SECURITY AND TERMS OF DEBENTURES. The-Debenture Stock will be"issued'ih any multiple of £10. with a, minimum of £30„ and will constitute a floating charge on the whole a the assets and undertaking of the Company subject to the terms of a Deed of Trust te .be executed in favour of George Arthur Gribbin as trustee for the Debenture-boldest. : • interest at 8% per annum will be paid witSßel any deduction, but subject to ordinary income tax at the rate -at which - the income « the holder is taxable, if at all. It will be^paid half-yearly, on the first, day of each or. the months of January and July. The Debenture Stock will be repayable 15 years from the 2nd day of July, 1928, provided that the Company will be entitled to redeem all or any of such Stock on the 2nd day of July, 1933, or the 2nd day of July. 1938. if it shall have given 3 months' previous notice in writing of,such, intention to the holders. .. . • '.. Btock will be issued either»in bearer bonds or registered in the hold<r's name upon request. It may be converted from one form to the other. I i THE PRESENT PLANT The existing plant and machinery is velued af £10,111 by Mr. G. K. Hansard, of Messrs. J. J. Niven & Co., Ltd.. who certifies that it is in good order and condition. . It will be removed to the new premises, after the completion of the further installation there. THE SUCCESS OF LAUNDRY COMPANIES. It is common knowledge that the laundry business is a very profitable one, and the relatively few companies in New Zealand which are adequately equipped to handle a large turnover and tor give full and efficient service are in an infinitely stronger position than that of their lesser competitors. ■''■•'■ i A well-known Auckland laundry company recently made a bonus Issue Of one Share far every five. A large Wellington laundry firm, which had an original capital of only £12,000 in 1911. now has a capital of £30.000, and it is stated that £9,100 of its Reserves were tapitalisedin 1923. It is known that one such company carryine on business in a city very much, smaller than Auckland has an annual turnover of approximately £75,000, i The dividends being paid by these companies an as high at 15%, and their Shires are unobtainable by the general Investor. . ■ ■ _ THE PROFITS OF THE PRESENT COMPANY. Assuming that the turnover of the present Company in its first year is as low ac £20.000. a -net profit thereon of 20%. which experience ha» - proved to be a conservative figure in these cases, will provide £4,000. -,-.'" This net profit of £4,000 will cover the debenture Interest twice over, and, after ' allowing for income tax, will largely exceed the amount required for a dividend of 1% on the 19,000 Ordinary Shares now being issued. The foregoing: estimate is regarded as the minimum which may be anticipated from the operation of the extended business, while there is no reason to doubt that it will be doubled within a comparatively short period. ' - .'.-■■' 'i At present the business is unable to accept further, work after Tuesday in most weeks, and the-reduction of hand work and the elimination of overtime which will result from the employment of further plant will largely increase the margin of net prafU. THE EXPANSION OF THE PRESENT BUSINESS. In view of the above parallel cases and of the present situation.of the Auckland Steam Laundry, Limited, it is beyond question; that the move which is now being made is not only justified but is demanded by the circumstances. Business which is now being turned away through lack of facilities. In addition to those classes of work which cannot be dealt with by tho existing plant. Is in itself sufficient to increasa the Company's turnover by nearly 50%, while the further new connections which must be created by. an active campaign of. publicity and the provision of service such as does not yet i exist in Auckland will contribute to double the turnover in the near future. ' The present works will be leased, by. the new Company-for £15 per week until the new premises are taken over in running order. ' It is estimated that the new premises will be ready for occupation in 6 mnoths from. .. the incorporation of the present Company, and there will be no period during which the normal activities of the (business will be suspended. CONTRACTS. The following are the material Contracts to be taken over by the Company:— (1). Agreement to purchase certain assets of the Auckland Steam ■ Laundry, Ltd., at the price of -10.000. ... (2). Agreement to employ S. H. Harrison at a salary of £500 per annum. ' (3). 'Agreement to emnloy M. T. Harrison at », salary of £500 per annum. (4;. Agreement with G. Stewart Cr-dg, Ltd., providing for a brokerage of 5% on all Shares and Stock allotted, exclusive of the Vendors' Shareß and Directors' Shares. ..'- ---(5). Draft Deed'of Trust with G. A. Gribbin. .. , s GENERAL. The minimum. subscription upon which the Directors may proceed'to allotment is 10,000,Shafes, inclusive of the Shares which have been subscribed for in the Memorandum of Association of the Company, but exclusive of Vendors' Shares; but tho Directors will not rjo to Allotment until a total of £20,000 in Stock and Shares has been subscribed. . The qualification of a Director is' 200 Shares, and the Articles provide that the Directors shall be paid such remuneration as the: Company in General Meeting shall from time to tmio determine. ; The Provisional Directors are the promoters of.the Company. The preliminary expenses-of and incidental •to the promotion of. the Company are estimated not to exceed £500, exclusive of brokerage and stamp duty, and will be borne by the Company. , TORM 0! APPLICATION TOR DEBENTURE STOCK OR SHARES. . i'o the Provisional Directors, THE AUCKLAND LAONDRY. LIMITED . (Intended to be registered under "The Companies Act. 1908"), C/o G. Stewart Craig.'Ltd.. 41, Shortland Street, Auckland. (Box 487). I HEREBY APPLY FOR AND REQUEST YOU TO ALLOT ME £...:... DEBENTURE STOCK BEARING EIGHT PER CENTUM PER ANNUM INTEREST. upon the terms provided in tho Prospectus dated the 12th day of June. 1928, and I enclose herewith the sum of ; being the amount of 2/6 in' the £, payable on application. AND I HEREBY AGREE to accept the Baid Debenture Stock or any smaller amount that -may be allotted to me, • "and to pay on allotment the sum of £ being the balance of tbe said stock "or 2/6 in the £1 on allotment, and the balance in three quarterly payments of 5/- in the £1 each. Should a smaller amount of stock be allotted than I have applied for, the sum'enclosed herewith shall be adjusted, or any excess credited to the sum payable on allotment. i I request the Debenture Stock te be issued, as registered in my name* bearer bonds IF APPLYING FOR DEBENTURE STOCK ONLY CROSS OUT FROM BELOW. IF APPLYING FOR SHARES ONLY. CROSS OUT FORM ABOVE THIS. I HEREBY REQUEST YOU TO ALLOT ME .'..."■.. SHARES in the above-named Company, upon the terms of the Prospectus dated the 12th day of June. 1923 AND I HEREBY AGREE to accept tha Bame or any lesser number that may be allotted to me. , . , ■ 1 enclose herewith the sum of £ ::;.. being the amount of 2/6 per share, payable on application. . "and 1 agree to pay a further sum of 2/6 per Share on allotment and the balance in calls of not more than 5/- each at intervals of not less than 3 months. "or I wish to pay the balance of 17/6 per Share on allotment and to receive interest thtreen at 6% per annum, until the respective due dates of the calls. Name in full "(Mr., Mrs., or Miss) t.-.ttt -„.77:...?.-....7r....-.-....T.-....-..~.-.—. -. v..;-.-. o at 9 . . TTT.-.-.-.....V.7... :t... .cr;...rn 1928 Uccupation ;... ;T7.-.-.rn...Tr;...nT...m.-. Address r............rr... .-..;...:.-.. .vr.Ti.7r: .-.r. :.....~.....rr....:r....r.....:^-^.— -..'(„: Ordinary Signature :.... \- : ■■■■■■■■■■ ..-•••■•■• •■,•••■•••: t Cross out whichever alternative does not apply to your application. . • THE SUBSCRIPTION LISTS WILL CLOSE ON SATURDAY, JUNE »0.