E. REECE, LTD.

Evening Post, Volume CXXVI, Issue 9, 11 July 1938, Page 14

E. REECE, LTD.

NET PROFIT INCREASE

A slight increase in net profit from £3147 to £3253 is shown in the accounts of E. Recce. Ltd., Christchurch, for the year ended May 31, 1938. Dividend on the preference shares has been raised from 4 per cent, to 4J per cent. The report states that "the year has carried its own anxieties for the directors and the management due to the very considerable rise in all metal values, and the uncertainty surrounding all world markets at the present time. The armament plans of the various nations very directly affect the price of practically all hai-dware commodities, with the possibility always of sharp rises or sharp declines, and your directors have not been unmindful of this in keeping stocks down to a safe level.

"The balance-sheet shows a net profit of £3252 10s lid, together with the sum of £599 15s Id carried forward from last year, making a total of £3852 6s, which your directors recommend should be dealt with as follows:—<fi) By payment of a dividend of 4£ per cent, on preference shares, absorbing £1102 10s; (2) by placing to reserve for dividend equalisation £750; (3) by writing off as a provision for bad debts £450; (4) by writing off depreciation on cars £250; (5) reserve for income tax £800; (6) by carrying forward a balance of £499 165." The directors retiring by rotation are Messrs. A. P. A. Nicholls and R. H. Hill, who offer themselves for re-elec-tion.