FREEZING WORKS

Evening Post, Volume CVII, Issue 32, 8 February 1929, Page 8

FREEZING WORKS

ARE THERE TOO MANY?

DIFFICULT TIMES AHEAD

(By Telegraph.)

(Special to "The Evening Post.") ~ OHBISTCHUECH, This Day. The forty-first annual meeting ot shareholders of 1 the New Zealand Refrigerating Company, Ltd., was held today, Mr. H. A. Knight (chairman of directors) presiding. ' '

"While I would have been very pleased if we could.have reported much better results," said the chairman in moving the adoption of the report and balance-sheet; "I think in the circumstances which have governed the trade that the actual results, cannot be regarded as unsatisfactory. In my speech last year I stated that a continuance of the 2% per cent, bonus was not to be*expected. So .long as there are more freezing works in existence than are necessary to cope with the stock, so long will the factories be working below capacity, with consequential higher costs and lower margins of profit. Recent years have eliminated some of th« smaller worts, but your directors still foresee the possibility of even morei difficult times ahead, and are confident that they are right in maintaining the conservative policy which they have adopted.

'' The balance-sheet shows that there ha been no alteration since last yea* in the position of our share capital, secured debentures, and reserve accounts. The items covering sundry . debtors and creditors remain much the same as last year, the former being increased by £5669 and the latter reduced by £4369, representing an improvem«nt so far as these accounts are concerned of over'£lo,ooo. In spite' of a larger turnover, I would only add that while we have on the liabilities side made every reasonable provision for contingencies, we have also valued our stocks on a thoroughly conservative basis. The valuation of our other assets stand at £8812 less than last year owing to the interest in the Wanganui Company shares, £12,103, having been. written off altogether, and a small addition to fixed assets, principally in land at Imlay.

"The profit and loss account shows that during the past year'we have made a profit of £45,145, which, after providing for the writing-off above mentioned, leaves a sum of £$1,042 to be added to the amount carried forward from last. year,, and provides the earn. of £76,260 for'our appropriation this year., ''§

"We recommend the payment of a 5 per cent, dividend, the remainder, which is approximately the same as last year, £44,445, being carried forward into next. The arrangements made with the Waitaki Farmers' Company have been again renewed, and their debentures are 'still held by us. An examination of our balance-sheet will show that the profits for the year are equivalent to over 6 per cent, on the paid-up capital and reserves. A similar analysis of the fifteen companies' balance-sheets, which are all that are available in New Zealand, shows that the result has only been exceeded by two North Island companies, one of which is a farmers' company not interested at all in the purchase.of stock. All the other North and South Island companies with a total, capital and reserves exceeding £2,000,000 are only able to show an average profit of about 4 per cent."'

The report and balance-sheet were adopted. Mr. G. E. Mannering, the retiring director, was re-elected. Mr. J. V . X, Lawrence was reappointed auditor at an increased remuneration of 100 guineas, as compared with last year.