A GOOD YEAR

Evening Post, Volume CXX, Issue 87, 9 October 1935, Page 14

A GOOD YEAR

FARMERS' AUCTIONEERING

The Farmers' Co-operative Auctioneering Company, Limited, Hamilton, reported a net profit of £33,385 8s lOd, which, with £708 13s' Id available from the previous year, left £34,094 Is lid to be distributed and enabled £12,660 12s to be paid to preference shareholders, 4 per cent, dividend to be paid on ordinary share capital, and the income tax for the year to be paid. The balance was carried forward.

The chairman of directors, Mr. E. M. Edkins, in addressing shareholders at the annual meeting held at Hamilton, said the capital and reserves show no variation on last year's figures, viz., subscribed capital £658,267, paid-up £479,953, reserve accounts £20,000. Fixed deposits, £1000, in a few months, like mortgages, would have vanished from the balance-sheet. The 'sum of £5582 represented the total [at credit of current accounts.

Sundry creditors, £27,975, have since been paid. "The liabilities, excluding capital and reserves, total £34,748, while the assets amount'to £562,465, revealing a percentage of liabilities to assets,"of 6.17," said the chairman. "The' value of the company's properties stands at £163,102, an increase on last year's figures of £1657, accounted for by new premises at Matamata, less depreciation on the whole of the properties. Renewals and repairs have, as usual, been charged against current expenses. The value of the whole of the working plant, machinery, office furniture, and fittings engaged in the business stands at £6130. Sundry debtors, less reserves, and bills receivable aggregate £199,169, an increase of £11,272.

"Investments total £42,275. Of this sum New Zealand Government Inscribed Stock (less reserve for any possible fluctuation in value) totals £28,495. The balance is represented by mortgages and other securities held by the company. . A credit balance existed with the company's bankers, on deposit and at call, of £60,076. Stocks of merchandise have been valued at £91,712, an increase of £3487 on last year's figures. The percentage of expenses to gross profits is 72.72. Summarised, the position is as under: —Paid-up capital, £479,953; total liabilities, £34,748; total assets, £562,465; turnover, £1,411,400; gross profit, £122,396; expenses, £89,010; net profit, £33,385." Mr. D. B. Livingstone, in seconding the adoption of the report and balancesheet, congratulated the company on having had a wonderfully successful season. For 'a company to have come through the depression as the Farmers' Co-operative Auctioneering Company, Limited, had done, with its assets intact, showed there was nothing much wrong with it. With a continuation of the prudent management that had characterised its operations in the past, the shareholders could look forward to a happy tune in the future. Mr. Livingstone also said that when one looked back to the formation of the company 28 years ago it was remarkable to note how it had grown into one of the biggest and soundest concerns in New Zealand. The shareholders should congratulate themselves on having such an ■ efficient management, and should support that management with their loyal cooperation. The report and balance-sheet were adopted without discussion.