BRUCE WOOLLEN MANUFACTURING CO., LTD.

Evening Post, Volume CVIII, Issue 118, 14 November 1929, Page 12

BRUCE WOOLLEN MANUFACTURING CO., LTD.

(By Telegraph.)

(Special to "The Evening Post")

- DUNEDIN, This Day. The thii-ty-seeond ordinary general meeting of the Bruce Woollen Manufacturing Co., Ltd., was held at Milton yesterday. In supporting the adoption- of the bal-ance-sheet, Mr. A. E. Stewart, a director, said the net profit was, no doubt, diappoiuting to ordinary shareholders.' The only explanation he could offer was that gross profits on sales were not large enough, which was owing to strenuous competition. Another factor to be taken into consideration was. the falling wool prices, necessitating the bringing-down of the prices of manufactured articles. Looking to the future, the orders in hand at present were fairly satisfactory. The company's agents in the four centres were doing ' their best to increase sales, and the. worsted plant was nearing a profit which o would materially assist both the hosiery and piece-goods departments. The sonly way to better the position of the company was (a) to increase sales and (b) to diminish mill costs. Both of these factors the directors had well in hand at the moment.

The net profit for the year was £5076, from which £2000 was deducted for depreciation of plant,, and £500 on premises; the preference Sividends and , interest would absorb £2533, in all £5033, leaving the profit and loss account £303, as against £38 in 1927.

An Auckland shareholder had written to liim asking what they had done with the £41,763 of fresh capital. In answer he would like to state that the new plant account had absorbed £11,0130, additions ,to premises £3137, and estra stock £32,----446. The last item was necessary owing to the fact that the company was now in- the position of warehousemen as well as manufacturers, and laiige stocks were kept in the hands of the agents in the four centres. The three items he had enumerated totalled £4G,G37, but from that amount had to be deducted the book debts, .which were less by £3375, and the workers' homes account, which was'less by £1436. Deducting these two items balanced the new capital. It was worthy of note, concluded Mr. Stewart, that.since the inception of the company £40,000 had been written off the plant account and £12.000 off the premises account, which left the plant and premises account in the balancesheet at two-thirds of their actual cost.

The, report and balance-sheet were adopted, and the retiring directors, Mr. J. A. Duthie and Mr. P. M'Swinuning, were re-elected.

Wright, Stephenson, and Co., Ltd., and Abraham and Williams, Ltd., report having received cable advice from their London house in regard to the next London wool sale. They advise that 137,000 bales will be catalogued for the next series opening on the 19th November aud closing on the sth December.