McKENZIE STORES

Evening Post, Volume CXXVII, Issue 118, 22 May 1939, Page 11

McKENZIE STORES

TRADE MAINTAINED

EXTENSIONS FOR THE YEAR

The directors of McKenzies Department Stores, Ltd., report for the year ended March 31 that the companies, had maintained their trading position, j in spite of the very difficult period during which they had been operating. The consolidated balance-sheet disclosed that the trading profits for the year ended March < 31, 1939, amounted to £81,863 4s Bd, after providing for taxation and all other contingencies. Profits carried forward from 1938 were: Trading companies, £62,146 4s 8d; McKenzies Department Stores, Ltd., £53,865 11s 3d; total, £106,011 15s 9d, less dividend paid June, 1938, £45,000, leaving £61,011 15s 9d. Profits for the year ended March 31, 1939, were £81,863 4s Bd, less dividend paid December, 1938, £35,273 Is Bd, and there was left £46,590 3s, less excess of expenses over administration receipts in profit and loss account of McKenzies Department Stores, Ltd., to May 5, 1939, £165 14s, leaving £46,424 9s. The proposed final dividend of 7 per cent, would require £35,000, leaving to carry forward from this year's profits £11,424 9s. The total to be carried forward after payment of the dividend in June, 1939, was £72,436 , 4s 9d. In addition to the interim dividend paid in December last, the directors now recommend a final dividend at the rate of 7 per cent., making 14. per cent, for the year. It is proposed to pay this dividend to all shareholders on the register on June 8, 1939. Undistributed profits amounting to £72,436 4s 9d will be carried forward to next trading year. The board of directors consists of Messrs. J. R. McKenzie (managing director), J. M. A. Ilott, Sir Charles Statham, T. B. Gusscott, J. E. Ramsay, and H. Edwards. Sir Charles Statham and Mr. Ilott retire, but, being eligible, offer themselves for re-election. The nominal capital of the company is £750,000, represented by 750,000 shares of £1 each nominal value. There have been allotted and fully paid up 500,000 of these shares. The snare premium stands in the balance-sheet at £155,551 ss. Full provision has been made for all taxes, and there is a substantial reserve in leasehold improvements, and fixtures and fittings accounts. Freehold properties at cost represent £268,953 19s 3d. There are mortgages on only two properties, amounting to £27,088 4s 4d, leaving a net value on property account of £241,865 14s lid. The company has a substantial equity in these figures. During the year new stores were opened and were successfully operating at Otahuhu, Symonds Street, Auckland, Dannevirke, and Tauranga. Referring to the general manager, the directors state that in September last, Mr. Gusscott's medical advisers requested him to give up active participation in business. On. this advice he tendered his resignation to the 1 directors, and this was accepted by the board .vith extreme regret. Mr.' Gusscott, however, was retaining his seat on the board, so that the company might still ,haye the benefit of his advice and experience. Mr. A. W. Duncan, secretary, had been appointed .general manager.

The company's auditors, Messrs. Ernest Hunt, Turner, and Heslop are eligible for re-election.