SUCCESSFUL TRADING

Evening Post, Volume CXXIX, Issue 113, 14 May 1940, Page 10

SUCCESSFUL TRADING

WAR DIFFICULTIES

M CKENZIE'S DEPARTMENT

STORES

The directors of McKenzie's Department Stores, Ltd., Wellington, report that all stores operated successfully. "The trading companies maintained their position, in spite of the very great difficulties which beset them. Import restrictions have operated very adversely, and our companies have been forced to rely to a greater extent on local manufacturers. The war, naturally, has added materially to our difficulties. "Our consolidated balance-sheet shows that the trading profits for the year ended March 31, 1940, were £87,589 2s lid, after providing for all known contingencies and taxation." The profits and dividend statement shows profits carried forward from 1939: Trading companies, £55,621 Is sd: McKenzie's Department Stores, (Ltd., £51,815 3s 4d, a total of £107,436 i4s 9d, less dividend paid June, 1939, I £35,000, and less additional income i tax since paid in respect of year ended March 31, 1939, £9155 10s 9d, leaving I £62,280 14s. To this is added profits for the year ended March 31, 1940, £87,589 2s lid; less dividend paid December, 1939, £35,373 5s 7d, leaving £52,215 17s 4d. To this is added excess of receipts (excluding dividends) over expenses in profit and loss account of McKenzies Department Stores, Ltd., to May 5, 1940, £573 11s Bd, leaving a balance of £52,789 9s. The proposed final dividend of 7 per cent, will require £35,000, leaving to carry forward from this year's profits £17,789 9s. The total to be carried forward after payment of the proposed dividend, June, 1940, is ,£81,070 3s. An interim dividend of 7 per cent, was paid to shareholders in December last. The directors recommend a final dividend of 7 per cent, making 14 per cent, for the year. This dividend will be free in shareholders' hands and not subject to further social security tax. Undistributed profits amounting to £81,070 3s will be carried forward. The retiring directors, Mr. T. B. Guscott and Mr.1 John E. Ramsey, offer themselves for re-election.

Paid-up capital is £500,000. Share premium reserve stands in the balancesheet at £155,551 ss. The directors also state "our taxation reserve last year was insufficient to cover the war tax levied on last year's profits. We have paid £9155 additional tax in respect of last year, and have provided £95,130 as tax reserve to cover assessments in respect of the year ended March 31, 1940." Freehold land and properties, at cost, represent £269,702 3s 6d, less mortgages £93,994 8s 4d. Depreciation £14,317 has been provided, leaving net asset value of £161,391 17s Bd." The directors ask approval for voting to the New Zealand Government the sum of £10,000 as a loan free of j interest for the duration of the war j and 12 months thereafter. j The balance-sheet items as at May ,5, 1940, and May 5, 1939, are compared | ! as follows: — I 1940. 1939. £ £ Paid-up capital 500,000 500,000 i Creditors and taxation .. 2,499 687 j Share prem. reserve .. 155,551 155,551 i Profit and loss 52,621 51,815 | Shares in J. R. McKen- ' zie. Ltd 500,000 500,000 1 Advances to J. R. McKen - zie, Ltd 165,504 164,891) Loan to Government frtß I of interest 10,000 — Cash at bank 35,166 43,162 ]