IMPROVED POSITION

Evening Post, Issue 87, 9 October 1936, Page 3

IMPROVED POSITION

W.F.C.A. MEETING

CHAIRMAN'S REVIEW

INCREASED BUSINESS

(Special to the "Evening Post.-7 MASTERTON, This Day. "I congratulate you on the improving position of the company," said Mr. C. M. Bowden, chairman of directors, speaking at the annual meeting ,of shareholders of the W.F.C.A., Ltd., yesterday. "The proposals for rearrangement of capital, announced last year," he continued, "having.now been given effect, there are considerable changes in the balance-sheet figures this year, as compared with last. , The debit balance of appropriation account has now been reduced to manageable figures and we.can look forward-to the time when the account will actually be in credit. "The generosity of preference shareholders has enabled us also to eliminate an. item, which was reaching large figures, namely, 'dividends in arrear.' As they have further generously agreed to reduce .their cumulative,rights in future to 3 per cent., and as this right does not commence to accrue until August 1, 1938, by .which date the company's position will, have shown further substantial improvement, I hope .that dividends; in .arrear will never again appear in our balancesheet. (Hear, hear.) • . INDEBTEDNESS REDUCED. ' "I'would1 direct' your attention to the improved liquid.. position. . As mentioned in the report, the bank indebtedness was reduced since last year by over £11,700—and over the past five years by upwards of £47,500—and. this is. after repaying,, during the year, mortgages of over £4000 on certain properties. Improvements in the company's financial position, of course, will bring relief in the interest charge, which is a heavy item in the company's expenses. INCREASING SALES. "Despite the loss of seasonal trade in certain departments through the abnormal weather conditions prevailing during the year, sales show an increase at nearly all branches, and in. the majority of departments or sections. During the current year, special efforts will be directed to building up turnover in the weaker departments, and a standardisation of service and expenditure which should make for improved results. The current year will not be without its difficulties. Increase in the rate of land tax will cost us £1391 extra, as we have to pay six times as much as formerly. The new wage schedules will add at least £6000 to our wages sheets. At most points we shall be called on for increased rates. However, it is claimed that the increased spending power given to the people generally will bring about such an extension of business as will enable us to recoup our increased expenses of operation." Mr. F. Davie said that goods could have been obtained in some instances elsewhere at lower prices than, were charged by the association. He went on to say that Mr. Bowden had resigned as managing director, but still held the position. » Mr. Bowden challenged the statement, observing that he had signed the report and accounts as chairman. • He was still chairman, but was.no longer managing director. , THE DIRECTORATE. Speaking "of changes in the directorate, Mr. Davie said the ordinary shareholders now represented about £3700, and the preference shareholders practically £250,000., He could not see that- the ordinary shareholders should have any directors on the board at all. He went on to, state that he thought it would be about four years before the shareholders got any dividends. Mr. Jordan; You are a dismal Jimmy. Mr. Bowden said that the/suggestion that shareholders would not get any dividend for another four years might or might not be\so. The preference dividend in any case started to accumulate on August 1, 1938. . Mr: Davie said he understood that, but unless there was a profit, he did not see any sense in paying a dividend. Mr. L. B. Maunsell asked whether the chairman considered that more money had been spent since the general increase in wages and whether he thought that the increase in turnover was in proportion to the higher wages. Mr. Bowden said there had .been an increase in the company's sales during the past month or two, but he was not prepared to say whether this increase was in proportion to the increase in wages. It was rather early to say that. PAYMENT TO DIRECTORS. Mr. Bowden moved that the sum of £400 be paid to the directors, to be allocated as the board might think fit The 'sum allocated last year was £300. Mr. Davie moved an amendment that the allocation to the directors be not increased, but this was not seconded, and the motion was carried, only Mr. Davie voting in dissent. -Messrs. Trevor Beetham and V, E. Donald were re-elected as directors to represent the ordinary shareholders. Mr. Bowden, in acknowledging , a vote of thanks to the directors, said that during his eight, years with the company, its position had improved, and he thought he might pay that was in some measure due to his efforts. He had fulf. confidence in Mr. Cunningham's ability to manage the affairs of the company. Considerable interest was taken in the election of two directors to represent the preference shareholders. Four nominations had been received, and the poll resulted as- follows:—A. B. Wood, 72,614; 0. M. Bowden, 67,631; C. P. Knight, 54-611; T. C. A. Hislop, 51,980.