SUCCESSFUL' YEAR

Evening Post, Volume CXXV, Issue 28, 3 February 1938, Page 12

SUCCESSFUL' YEAR

JOSEPH NATHAN AND CO.

POLICY FOR THE FUTURE

(From "The Post's" Representative.) LONDON, January 12. An announcement that it was the policy of the directors to develop the pharmaceutical side of the business more actively in future even if it caused a material alteration in the structure of the business, was made by the chairman of Joseph Nathan and Company, Limited (Mr. Alec Nathan) at the annual meeting in London yesterday. The chairman said he was pleased lo be able to report an increased profit for the year. . The balance to appropriation account at £91,298 had improved by £6232, arid after transferring £35 875 to the reserves anu paying an ordinary dividend of 10 per cent., the carry-forward was £1338 higher than that brought in. The consolidated statement showed that the issued capital, including the' interest of outside shareholders, was. more than covered by the fixed assets. . , Investments and floating assets alone exceeded the'total liabilities by nearly £47 000 and the reserves and profit and loss balances, at almost £250,000 covered the value' of. goodwill, trade marks, e*c, more than twice. Total reserves were £100,000, while sundry investments, mai.nly redemption policies, were to the • extent of over £40,000, in effect, a cash reserve. DEVELOPMENT OF COMPANY. The roots of Joseph Nathan .and Company had been planted,,in New Zealand in 1857, the-business being at its inception'purely a merchandising one, Mr. Nathan said. . Later, it manufactured dairy produce, then .handled it on a large.scale, and introduced dried milk in the Dominion. The disposal of dried milk had led to the elaboration of a very considerable organisation for the manufacture and sale of pharmaceutical products, the use of which was recommended by the medical profession. .The directors were confident that as the company had available the necessary technical knowledge and organisation, the promotion of the pharmaceutical' side of the business in. future was a sound and wise policy.. . . . Circumstances had necessitated the production of some-of their milk powder in Britain, so a factory had been erected in Yorkshire.1 and' was in; full production on October 1. , > ■ The.buoyancy, :of. the company's turnover throughout the world had been maintained with an, increase of sales in every territory, due to, the farsighted policy of development. ■• The policy' of the" directors ;of 'the Glaxo Laboratories was to make themselves self-contained from' the • production angle, so as to provide greater, powers of resistance -to meet any future recession.. ' \ ■■■■"■ . ■ ■ ■ George Bowles ,-Nicholls,: their, produce distributing; business, had been, carried on under .the .severe handicap of the Government's policy of quotas in relation to the importation. of bacon, which; had made it impossible for the business to function without incurring'trading losses.' 1; ' STEADY MARKET PRICE. Trengrouse and Nathan had had a much more satisfactory, year, due to the steady market price 'for New Zealand butter and cheese, resulting from the New Zealand Government Dairy Sales Division supervising its sale in co-operation with their appointed agents in London. New Zealand manufactured the best quality and most nutritious butter in the world, a fact recognised by the blenders, but it was a misfortune for the consumer that measures had not been adopted by which the identity and1 purity of New Zealand butter were retained until it reached the table of the consumer. The New Zealand business,. which had been reorganised as/part of the general scheme, had had a satisfactory and prosperous' year;1 while the Australian company had had a far: better year than for some time past; The modest amount of the ordinary dividend was governed by the fact that the directors were consistent and persistent in their policy of building up reserves to ensure the safety and progress of the company and the permanency of payments of dividends. With: regard lo the future, Mr. Nathan said that to date - the < current financial year was at any rate equal-to last. The report and accounts were unanimously adopted. , ■