NET PROFITS HIGHER

Evening Post, Volume CXVII, Issue 111, 12 May 1934, Page 5

NET PROFITS HIGHER

WRIGHT, STEPHENSON, AND COMPANY

Tlie report and balance-sheet of Wright, j Stephenson, and Co., for the year ended March 31 last shows a credit balance of £41,354 5s Cd. From this lias been deducted the interim dividend on preference shares paid on November 1 last, £6246, leaving a balance available for distribution, £3.),10S 5s Gd. Out of this sum the directors recommend that, after making the fixed payment, including a half-year's dividend in arrears, on the preference shares, a dividend of 3 per cent, be paid on the ordinary shares, leaving £13,600 0s 6d to be carried forward. Sir William Hunt,.Messrs. J. T. Martin, and S. C. Sutherland, retiring directors, oiler themselves for re-election. The retiring auditors, Messrs. Barr. Burgess, and Stewart also offer themselves accordingly. The company's net profits for 1932 were JE25.964 and for 1933, £30.359. Dividends paid on ordinary shares for some years past to 1930 were 7 per cent. In 1931 this was reduced to- 6 per cent., in 1932 to i per cent., and in 1933 the ordinary dividend was passed. The preference share dividend 0f.5% per cent, was maintained until 1932, but last year 2% per cent, was paid on these shares , CHAIRMAN'S COMMENTS. The chairman (Sir W. D. Hunt) in a memo, to shareholders, issued witli the report, states that "a year ago when sending you our accounts for the year ending March 31; 1933, we pointed out that our accounts reflected the cumulative effect of the continued fall for four successive seasons in the price, level of farm products. v c pointed out, too, the manner in which our company and its farmer clients would benefit by a. moderate rise in the price level of farm products. Since then the price level of sheep products has improved considerably but dairy products show a lower _ average price level for the year Hum tor the previous one. "The largest proportion of our advances are^yith sheep farmers, and the improved position of our sheep-farmer clients is reflected in our accounts which show a net profit for the year of £41,354 os 6d. "Last year left us six months in arrears with our preference dividend and nothing to carry forward in our profit and loss account. We now propose to clear up the preference share position which means we are paying out of this year's profits 18 mouths' dividend on our preference shares. We propose, too, to pay a small dividend of 3 per cent, on our ordinary shares and carry forward to next years accounts Hie sum of £13.009 Os 6d. lms carry forward is rather more than one year's dividend on our preference snares. FARMERS' COSTS KEEP HIGH. "While the improved condition of shepp tanners is very gratifying, it is a mistake to assume that all our farmers' difficulties are at an end. Sheep farmers srowin K tine wool have had a good year, but growers ot the stronger erossbreds. which form the bulk ot the New Zealand clip are still getting prices which are very low when compared with pro-slump years Dairy farmers arc still having a "most difficult tune. It is the average condition of all our farmers that counts and not the specnil of selected eases. 'lliis average condition cannot be shown better than by quoting the export pricel level ot farm products published by 1 the New Zealand Government Statis-] tician. The average level for the ] fit teen years 1915-29 inclusive was 1492 The average price level in Xiarch last was 99().

> "Fanners' costs have not come down in anything like the same proportion."