SOUND POSITION

Evening Post, Volume CXVI, Issue 114, 10 November 1933, Page 9

SOUND POSITION

SHARLAND AND Co>

'■'■ REVIEW OF THE YEAR

The- annual meeting of shareholders of Sharland and Co.,' Ltd.,; was held yesterday! Mr. A. E., Mabin, chairman' of directors, presided. ;. .: !

Mr. Mabin, in moving the adoption; of the report andbalance-sheet, which have been printed, said:—"The year has been one of quiet trading condi-. tious, owing to the low purchasing power of the community, which has naturally been reflected in the com-, pany's turnover. The outlook for the future is brighter; the higher prices ruling for our primary, products will,, as soon as some portion of the. new-sea;. son's produce has been marketed/-' increase tho spending power of the people, when wo may confidently look" for .higher turnover and better results, generally.! All- bad -and ■rdoubtf ul debts have been provided.(for.,,.t Stock^ Mas: been conservatively valuediiiaHa^dsp'^i pertyy even on ; today's market ;.tWiifeV is worth more than shown1 in 'tn^Jbal-' jance-shoet; Plant and1' fittings '.".Are1 valued on safe lines. The balance-sheet is absolutely clean. It; will benbticed that stocks are down by £7500 'and book debts £4103,; This,-as well as being a reflection of the... decreased turnover, is due to-very careful"scrutiny and1 oversight; so far as stocks: are concerned, the company holds 'ample i'for all customers'■ requirements. : With improved trading conditions' and' a greater and more rapid turnover, it will bo necessary to lay out more capital in stocks. The gross profits are'down by £2795, but this has been more than compensated for \.by. thoidccrease in general expenses of' £2973. "The company,.during the year, paid I off the mortgage on the Wellington.premises amounting to £8000, and as the mortgage of £15,000 on the Auckland, premises falls, due next April,,'it is proposed to pay this off also, and thus leave the company's assets free of any but current liabilities. The item on the assets side> cash on deposit, £23,000, will more than provide for this operation. In accordance . with: the National ■ Expenditure Adjustment Act, the dividend on preference shares for the period under review musfrsstand at 5 per cent, per annum, and your. directors consider that a prudent policy, on this occasion, is to confine/the dividend to ordinary . shareholders to the same rate, and wipe out the balance of the goodwill account, £2000, also leaving a substantial amount in the carry forward. Thus the new year will 7 see the company in a sound-trading position, free Of any burdens for goodwill or interest on mortgages. I now, move the adoption of the report and balance-sheet, which, if passed, will cany with it the immediate payment of a dividend of >2J per cent..on both tho preference and ordinary shares, making 5 per cent, for the. year." The motion was seconded by Mr. W. Watson and carried. i

Messrs. W. Watson and J. H. Owen were re-elected directors. The auditors, Mr. J. W. Jack (in Wellington) and Messrs. A. and J. Grierson; (in Auckland) were reappointed auditors.

On the motion of Mr. A. Hamilton, a hearty vote of thanks was passed to the directors and staff.

In' returning thanks, .the. chairman said that the company was Very well staffed. The general manager, Mr. C; Bruce-Smith, by his good work had been largely instrumental in putting the company in its present sound position. Mr. Mabinalso paid .tributes to the good services of the secretary, Mr. 1\ E. Hall, tho .branch managers, Mi-. H. McDonald (Wellington) and Mr. M. Come (Auckland), and to the rest of the staff. . .'■■>- ■■■