WELLINGTON WOOLLEN

Evening Post, Volume CXXVIII, Issue 29, 3 August 1939, Page 12

WELLINGTON WOOLLEN

DIVIDEND 6 PER CENT.

The directors of the Wellington Woollen Manufacturing Company, Limited, in their 56th annual report, balance-sheet, and statement of profit and loss for the twelve months ended June 30, 1939, state that an interim dividend of 2£ per cent, for the halfyear ended December 30. 1938, was paid in January last. The directors now recommend a further payment of 3J per cent, on ordinary shares and 2\ per cent, with a bonus of 1 per cent, on the preference shares —making 6 per cent, for the year on both issues— and that the balance, £7316 8s 2d, be carried forward.

"In the greater part of the first half of the year," add the directors, "trade was dull; but with the Govenment's partial restriction on certain competitive imports (imposed in December) demand for the company's goods increased gradually; but, unfortunately, the producing plant could not be worked to capacity owing to shortage of suitable operatives. - That position is improving and recently the mill commenced working overtime, with a night shift in some departments. The plant and buildings are well maintained in first-class condition from revenue, and the sum of £7000 is written off their book value for the year's depreciation. Additions to plant within the twelve months total £4584."

The directors to retire are Dr. C. Prendergast Knight and Mr. Wm. Watson, who offer themselves for re-elec-tion. Messrs. Henry Kember and Son, public accountants, and Ernest W. Hunt, chartered accountant (Aust.) also offer themselves for reappointment.

The balance-sheet iteriis for 1939, with those for 1938 shown in parentheses, are as follows:— Liabilities.—Bank, £54,726 17s .7d (£66,977); sundry creditors, £25,309 13s ld (£23,429); deposits, general, £12,189 14s ld (£18,553); deposits, employees, £8498 3s 8d (£7254); dividends outstanding, £19 15s (£32); general, £58,000 (£58,000); fire insurance £11,600 (£11,500). Capital, £300,000 (£300,000). Net profit, year ended June 30, 1939, £18,422 ISs 3d; less interim dividend to December 31, 1938, £7500, £17,816 8s 2d (£14,9.97). Contingent' liability—Bills under discount, £3346 19s ld (£3411).

Assets.—Cash, £235 19s 9d (£348); sundry debtors and bills receivable, less reserve for bad. debts and discounts, £75,902 18s 3d (£63,857). Stock—Raw material, goods in process and at warehouses, £170,334 15s 2d (£193,342); unexpired insurance premia, £480 15s (£470). Freehold land at Petone and Christchurch at cost, £11,433 0s Id (£11,433); buildings at Petone, Wellington, and branches at cost, less provision for depreciation to June 30, 1938, plant and machinery at cost less provision for depreciation to June 30, 1938, and additions during the year, £229,773 3s 4d (£232,188).