INVESTMENT COMPANY

Evening Post, Volume CXVI, Issue 23, 27 July 1933, Page 13

INVESTMENT COMPANY

YEAR'S OPERATIONS

"FURTHER STRENGTHENED"

Speaking today at the annual meeting of the ' Wellington Investment, Trustee, and Agency Co., Ltd., Mr. G. G. G. Watsou, who presided in the absence from the Dominion of the chairman of directors (Mr. G. Shirtcliffe), said he thought that it was the first occasion in the history of the company when the directors were unable to recommend the payment of a dividend. He apologised for the absence of another director (Mr. W. Appleton), and also Mr. L. 0. H.. Tripp, whose place on the board he (Mr. Watson) had taken. ''While shareholder's," he said, ''arc no doubt disappointed that the board is unable as the result of the year's operations to recommend any dividend, a consideration of the figures disclosed in th.c annual accounts will, I think, not only satisfy shareholders as to the wisdom of not recommending payment of a dividend, but will also satisfy shareholders that the position of the company is remarkably sound, and has been further strengthened by the action taken by the board in utilising £3000 of the year's profits to provide against probable losses oil securities." Mr. Watson dealt with recent legislation, his remarks appearing under another heading. Returning to his review of the results of the company's operations, he said: — "It will be seen that In spite of adverse conditions the company made a working profit of £3508 Ts'lOd. Of this amount, however, £3000 has been utilised to provide for probable losses on securities, leaving a balance of £508 7s lOcl to be added to the amount brought forward,from last year, and making a total of £1440 7s Sd to- bo carried forward. Your directors considered it prudent to make this further provision for losses on securities rather than leave the reserves of the company to be trenched upon to that extent. So far no recourse whatever has been had either to the general or special reserves which still stand at £27,000 and £6598 15s 10d respectively. Such a state of affairs is a source of great strength to the company. Those reserves should be more than ample to meet any further potential losses which the company may suffer during the depression, while, on the other hand, a return to normal conditions would render unnecessary at least a substantial portion of the provision that has been made. POSITION OF ACCOUNTS. The deposits and accrued.interest now stand at £93,136 Is 6d, as compared with £117,768 13s 3d a year ago. During the early part of the year the deposits were substantially reduced by depositors' withdrawals. The position of deposits has, however, now been successfully stabilised for a lengthy period. As the result of these withdrawals the liquid assets have been reduced to £10,880 0s 7d, as compared with £20,862 5s lid a year ago. There Mftis also a bank overdraft liability at the time of the balance of £7254 11s 3d. This overdraft, it will be seen, is more than covered by liquid assets, and the overdraft \» being steadily reduced. As the company's securities are realised, the liquid assets will be, accordingly increased. "The company's mortgages now stand at £182,022 12s Bd, as compared with £189,784 17s 7d a. year ago. The difference in interest received, however,, shows/ a greater disparity, namely, £9731 17s, as compared with £12,409 10s 6d a year ago. This disparity is, of course, in large measure accounted for by the statutory reduction iv interest rates, the full effect of which has been felt for the first time this year. Had it not been for this statutory interference with ,the operations of the company, the company's past record of continuity of paying dividends would not have been u-okon. It may be of. interest to shareholders to know that in the preceding forty-six years.of the company's existence it has paid dividends which average out at approximately TVs per cent, over the whole period. WhileioT reasons beyond our control we are unable this year to continue that record, We feel confident that the prudent and cautious.administration of the company's.affairs in past years will not only enable the company successfully to weather the financial blizzard, but to <io so without serious embarrassment and in a condition to take full advantage of a return to normal conditions." • Concluding, Mr. Watson said he would like to pay a tribute to: the work done for shareholders by the chairman o£ directors (Mr. G. Shirtcliffe), and the managing director (Mr. Alfred Smith). ) Both these gentlemen had given to tho company's affairs their ability and energy in full measure. He would also like to ex-_ press appreciation of the efficient service rendered by the secretary, Mr. Underbill. He moved the adoption of the report and balance-sheet, a synopsis of which has been published, in "The Post." In reply to a. question, the chairman said he did not think that the sum of £3000 proposed to be written off mortgages was, at the present time, an unduly large provision to make. The report and balance-sheet were Messrs. G. Shirtcliffe and G. A. Troup were re-elected directors, and Messrs. h. Buchol/. and S. M. Hobbs were reappointed auditors. -. On the motion of Mr. S. P. Curtis, votes of thanks were passed to the directors and the staff.