GOLDEN BAY CEMENT

Evening Post, Volume CXII, Issue 124, 21 November 1931, Page 7

GOLDEN BAY CEMENT

DIFFICULT TRADE YEAR

FALLING OFF IN BUILDING

The annual meeting of the Golden Bay Cement Company, Ltd., was held at the office of the company on Thursday, Mr. P. E. Hogarth, chairman of directors, presiding over a good attendance of shareholders. In moving the adoption of the report and balancesheet, the chairman remarked that the debentures issued show some variations. The original issue was reduced by £1000 owing to two debenture holders converting their debentures into ordinary fully-paid shares. The "A" issue of debentures had been reduced by conversion of £1750 of debentures into ordinary fully-paid shares. The "B" issue was similarly reduced by £3<o; but the "C" issue had been increased by a further issue of £9075 of debentures which were issued to the British Standard Portland Cement, Ltd., these being issued ,to complete the payments hi connection with the new machinery. Tax reserves had been reduced by £900, and the amount shown in this year's accounts, namely, iloOO, should be sufficient to cover the debenture and income tax payable.' -Deposits' and accrued interest stood at £4198 2s 6d, aa compared with tsoDi 14s 9d lastyear. j.his reduction had been effected by repayment of amounts owing under this heading, and since the date of the balance-sheet a further £4000 had been paid off deposit account, leaving £150 on deposit. Sundry creditors Jero less this year by. £2040 4s 2d. The bank overdraft showed an increase of £4622 15s 7d, but it was only temporarily at this high figure and had since been largely reduced. _ This was due to debenture interest being due on that date and; also repayment of de posits

COMPANY'S ASSETS.

Turning to the assets side of the bal-ance-sheet, the freehold land stood at tho same as last year. Plant, machinery, buildings, etc., last year amounted to £208,683 2s Sd, and this year the figure stood at £185,154: 7s 3d, after allowing for depreciation for the twelve months and also after transferring £40,883 Ss Id to unused plant. This latter figure represented machinery and buildings which wore not now _ used for company's purposes. This amount would require to bo written off in future years subject to the possibility of sales being effected. Stocks of spares, stores, and cement on hand were a little greater than last year, due to the fact that the company had a larger quantity of coal on hand, and that it had to stock a complete range of spares for the new machinery. Sundry debtors and bills receivable together showed a decrease of about £1650, due to slightly reduced sales.

REDUCED SALES AFFECT PEOFITS,

"I regret very much that we cannot place a more attractive result for the year's trading before you," the chairman continued, "but you will realise that this company is no' exception' tb other trading concerns that have passed through the depressing period of last year. In this connection I would, emphasise the important bearing that reduced sales have, upon our profits. It is an all important subject, especially in our industry, which- carries such a large percentage of fixed overhead charges, that any.marked fluctuation in output is immediately reflected in production costs. We confidently expected that with the completed installation of the new plant, which has an output capacity of 50,000 tons.per annum, and the fact that the old plant did not produce sufficient ceruerit: to meet the requirements of the market, our sales figures would increase materially. I regret that our expectations in that regard have not materialised, but to the contrary the figures for the year' under review are somewhat below those of the previous year. This is, of course, a reflection of,the exceedingly difficult times through whic' we are passing, causing a severe falling-off in construction'work of all'kind's.

"In building construction alone'it may interest you to know that building permits to the value of £7,425,712 were issued during the year 1929-30, but had fallen to £3,485,593 during 1930-31.

"As a result, your directors on three occasions during the past year have had to close the works and temporarily dismiss all hands exco.pt those retained to execute repairs, etc.. You will realise that such breaks in the continuity of manufacture must greatly affect production costs, besides' throwing a large number of men out of employment."' ' .

The chairman then moved the adoption of the report and balance-sheet, and this was agreed to.

The appointment of Mr. C. W. Salmon to the board of directors was confirmed, and Mr. J. M. A. Ilott, the retiring director, was re-elected.

Mr. P. E. Pattrick was re-elected auditor.

Subsequently the annual meeting of. debenture holders was held, and Mr. C. M. Ollivier presided over a good attendance.

The chairman reviewed the year's results and assured those present • that the instalment of the new plant had been completed some nine months ago, and the company's works were a very fine asset, and the security for. the debentures had considerably improved thereby, and was now quite a good one. .

Mr. J. ,S. Macarthur was. re-elected to the board of directors.