REDUCED BUSINESS

Evening Post, Volume CXII, Issue 116, 12 November 1931, Page 16

REDUCED BUSINESS

AUSTRALIAN COMPANY LOSSES Morley, Johnson, Ltd., house furnishers, Sydney, report a net loss of £8202, against a net profit of £7774 in 1029-30, and of £15,700 in 1928-29. In view of the restriction of collections following on recent legislation, the directors consider it advisable to defer payment of the 9 per cent, dividend on the cumulative preference shares. The year's loss extinguished the credit balance of £3274 brought into the accounts, and left a debit of £4928 to be carried forward. The company, however, has actual reserves of £32,670. Complaint is made that a serious reduction in turnover was experienced during the year ended 30th June last;- due to economic conditions their prevailing. Activities were also hampered in respect to hire-purchase transactions by the introduction and application of the moratorium. Economies were effected where possible; but, owing to the fixed nature of certain charges, it was impossible to reduce expenses proportionately to the fall in turnover. Robert Reid and Co., Ltd., soft goods merchants, Sydney, incurred a loss of £88,846 on the year's trading to 30th June, after providing for debenture interest, provision in suspense for loss on conversion of Commonwealth bonds, and expenses to date re debenture stock purchases and redemption. Net- profit for the preceding 12 months was £30,577. The absence of profits has compelled the board to have recourse to its reserves to pay preference share dividends to the extent of £29,000: • Deducting £10,507 brought in, the debit at profit and logs' .account now totals £75,335. Consequent upon the changed trading conditions, Gowing Bros., Ltd., drapers, Sydney, incurred a net Joss •of £14,287 on its operations for the year ended 31st July last. The profit and loss account is in debit to the extent of £1-5,455. That is to be extinguished by a tratisfer from reserves. During the year £13,265, representing the book value of the company's interest in resumed property written off, was also withdrawn from reserves, which will now be reduced to £23,465.