SUNSHINE BREWERY

Evening Post, Volume CXXVIII, Issue 14, 17 July 1939, Page 12

SUNSHINE BREWERY

DIVIDEND 5 PER CENT.

Directors of the Sunshine Brewery Co., Ltd., Napier, report for the year rt MarCh 31 ' 1939 ' a ne* Profit Of £926 0s lid, after providing for depreciation on the usual basis, income feo3^ ,socL af security tax. Adding the £.5787 lis 7d brought forward from the previous year, the total amount to credit of profit and loss account is £4713 12s Gd.

The directors recommend payment of a dividend of 5 per cent, on the paid capital. The last annual report had indicated that, owing to the sale by the Napier Brewery Co., Ltd., of its hotels to which the Sunshine Brewery had the privilege of supply, it was doubtful whether a sufficient turnover could be maintained to enable the company to carry on at a profit. The past year's turnover included sales to sources that were no longer available, and with the probability of the sale of the remaining hotels owned by the Napier Brewery Company at an early date it became evident that the turnover during the coming year would in all probability be insufficient to enable operations to be carried on at a reasonable profit. As the result of an inquiry received from Dominion Breweries, Ltd., the directors had decided to lease, the two hotel freeholds and the brewery to that company for a period of seven years. The offer was accepted at a satisfactory rental and Dominion Breweries, Ltd., were to take over the hotel furniture owned by the Sunshine Company, whose stocks of wines, spirits, and ale would be disposed of.. This arrangement, the directors considered, should assure a regular return to shareholders on their capital and also provide a surplus sufficient to annually depreciate the brewery premises and plant, so that at the termination of the lease the book value of these assets should be reduced to approximately their market value at that date. This arrangement would mean the discontinuance of the brewing of Sunshine ale, but the directors considered that, in the interest of shareholders, the only course was to lease the brewery and hotel premises. The retiring directors. Messrs. A. B. Hurst and J. W. Sandtmann, offer themselves for re-election.