KEMPTHORNE, PROSSER. AND CO.'S N.Z. DRUG CO.

Evening Star, Issue 12766, 20 March 1906, Page 4

KEMPTHORNE, PROSSER. AND CO.'S N.Z. DRUG CO.

: SET I’BOrlT FOR YBAR. f11'6,000. : The twenty-seventh annual. meeting. trf Komptborrie, Prosser, and Co.’s New Zealand Drug Company was held this afternoon in the Board Room of the Agricultural Hall, and attended by about thirty shareholder*. Mr William Brown presided, and'the; other directors present were Mr A. Bathgate, 'Mr John Mill, and Mr G. Sievwright. l)r; Ogston sent an apology: —The Report. — ' ; Tile Chairman cold t Gentlemen,—dri accordance with the nsnal practice, I shall ask yon to accept os rend the .printed report and balance-sheet, which has now been a ■week in your hands, arid in submitting those for 'adoptionyby the shareholders I congratulate you upon not only- > the . continuance of ; activity in its operations, bub also an increase in the volume of its bustness and in the results shown in the profit and loss account., Reviewing the varioua lines in the balance-sheet before you, you will notice that the capital shows an increase of £4,455 10s, and that it now standi at its full amount of £300,000.. .During the year all the unallotted shares ivcr< issnecl and the uncalled portion of the capital was called up and paid. It will bo understood that an increasing _ busineoa necessarily involves a corresponding financial basis, and the directors deemed it prudent .on that account to increase the capital to its full authorised amount. Deposits and open accounts stand at £47,005 8s 3d, which shows an increase of £14,331 10a at iha moment of balancing. Of this amount, £10,700 is simply a matter of bookkeeping, and is due to a change in the treatment of a number of consignment accounts to bring them into a; uniform system at ah the branches. The difference includes aiso sutiie deposits at interest which have since been, paid off. Bills payable stand at £12,769 6b 6d, as agafflst £i4,829 18s lid last year, being a, decretißs of £2,060 12s sd, incidental to the ordinary fluctuations of business. • SIM fund stands at 4s. At last balance the amount was £3,450 10s Bd. The difference is accounted for V ss?* ments to sick members of the staff. fPha directors during the present year will give consideration to this fund, with the view of placing it on a more defined position. Fire insurance fund stands at £3,726 12s 6d, ‘as against £2,366 7s 6d last year, and shows an increase of £1,360 Es. It will bo remembered that £I.OOO was added to this fund at last annual meeting. The balance is made np of premiums on uncovered risk which have been credited to this account. , It is proposed to include the whole of this amount in a general reserve account, where, it would be as available for contingencies as it is at present. Land depreciation stands at the same figures as arc shown, in the previous balance-sheet—viz., £6,696 14s 6d and £l,lOO. It is proposed to make up the total to £7,000 by an addition of £203 6s 6d out of profit and loss account, and during the year to apportion that amount to the premises which most require to be written down. Reserve on customers’ accounts appears at £3,500 15s od, as in the accounts of last year. It is proposed to retain, in this reserve 5 per cent, of the aggregate book debts to cover discounts, bad debts, and contingencies, and to carry to a general reserve account the remaining sum of £1,246 Is 3d. Turning now to the assets, it will be observed that stock stands at £151,455 19s Bd. last year it was £145,908 0s lid, and therefore shows an increase of £7,545 ISs 9d. This is mainly due to tlxe alteration in the method of i ratting goods held on consignment, alraidy referred to. Outside of this alteration the stock chows a slight reduction of over £5,000. The reserve of £7,851 9s 6d shown as a deduction from stock iv another amount which may be beneficially carried to a general reserve and is so dealt with in the recommendations embraced in tho . directors’ report. Land, buildings, plant, and machinery stand at £89,476 16s lOd, as aaainst £86,572 Os 7d —an increase of £2,904 16s 3d. £1,062 of this is due to the fitting np of the New Wellington warehouse, which" was not completed ut date of last balance. The other items 'were incurred in additions to plant, etc., and arc spread over the several promises in Auckland and Dunedin. Book debts and open accounts stand at ,£45,093 19s Sd. against £58,265 4s 7d; the difference is £6,828 15s Id. This is accounted for by increased sales during December and January, and hoars a reasonable proportion to tho turnover. The details have 'been carefully scrutinised. Against this aggregate stands the reserve on the other side, customers’ accounts £3,500 15s 3d, which has been already dealt with, and it is unnecessary to repeat. Cash in bank'stands at £7,937 6s lOd, and may ire deemed a satisfactory balance, taking into account that a .half-yearly dividend was paid in September last. Bad debts, £767 5s 4d; last year, £824 3s Id; a decrease of £56 17s 9d. Considering the large turnover, the amount is small. Turning now to the profit and loss account, shareholders will find that the net profit of the whole year’s transactions is £16,064 9s 3d, inclusive, however, of £175 Is 4d, arising from premiums on the recent issue of new shares already alluded to. Eliminating the latter amount, there is an increase in the net trading profit of i£7B9*l2s. Taking the above net results for the year—£1.6,054 9s 3d—together with unappropriated balance from last year {£14,891 8s XOdj, making together £50,955 18s Id. and deducting the interim dividend paid to shareholders for the half-year ended 31st July last (£6,850 10k 8d) there is now a balance to 100 dealt with of £24.105 7s sd. Tho appropriation of this amount, recommended in tlie printed report, is as follows: —To the payment of a dividend for the last half of the year, at rljc rate of 7 per cent, per annum, will absorb £6,900 11s; to the transfer to reserve account, inclusive of tho premium.on new share issue, £9,175 16s 9d; to transfer to land and buildings’ depreciation, £203 5s 6d ; the total of tbesa appropriations, if adopted, would be £16,279 13s od, leaving a balance to be carried forward to nest year of £7,825 14s 2d. Gathering up what has already been said in respect of transfers to a general reserve account, if passed by the shareholders, the following would be tire position, on entering the current year; Movable reserve of 6 per cent. against book debts ... £2,254 14 0 Depreciation on premises to lie afterwards allocated 7,000 0 0 General reserve 51,254 14 0 To which may be added tho balance of profit and loss account to be carried forward ~ ™ ... 7,825 14 2 In all f.. .... ... £39,080 8. 3 Since the Goring of tho year - the business has continued on an active level, satisfactory financial arrangements to meet all future requirements have been initiated, and with those in operation and an increasing business to handle, the directors believe that tho shareholders have before them a prosperous year. The directors regret that through his retirement they lose the benefit of Mr Kempt home’s counsel and experience, but after such a long period spent in tho active management of, the company’s interests, he carries with him their cordial goodwill and good wishes . The company have attained their present position under bis management, and it is to bo hoped that he may now enjoy a long period of good health and the relief which bis retirement secures from tha work of active management, apd from the anxieties he has eo long carried! In Mr Hc-nton, the company have found a worthy successor • to the general management, and it is fitting that to him and to the departmental managers and the general Muff recognition of faithful and zealous services should he - recorded. Because of a question asked tho other day, I Drink it well to explain, for the information ‘of shareholders, that the audio in, Dunedin has been conducted by the firm pf which 1 was formerly a parinep, but haring, retired’ from that firm oh the;3lst April. 1800, my bonueptipn..with the firm terminated nearly six years ago, and there has shite existed only the similarity of naine. v 1 did not join the Board until requested tp do eO in July, 1904. 1 now ’ move ,the adoption of the report and eojpiitted, which* if. carried.,

for ’the payment of the divivend recommended, and. for the establishment of the reserves proposed. Mr H. W. Mitchell seconded the motion. In the .course, of his remarks he praised the management of the company, and said he hoped to see the dividends raised to 10 per cent, some day, but in the meantime he was satisfied, and counselled the ether shareholders to be satisfied too. The motion was carried without anyone else rising. —Mr Kempthorne’s Retirement.— ‘.Mr T. Hunter asked if Mr Kempthorne had finally decided to re tiro from Ik; Board, as he believed that Mr KempthomeVi presence on tho Board would bo desirable. The Chairman replied that that was Mr Kempthorne’s own wish. Mr Kempthorne remained on tho list of shareholders, but desired to retire from tho board of directors, that ho might have leisure to visit various parts of the world. Otherwise the directors would have been pleased to have retained Mr Kempt home’s services as manning director, as the Board had always worked most Ixarmoniously with him. —Director?.— Mr D. Wilson moved ami Mr T. Hunter seconded the re-election of Mr W. Brown find Mr John Mill as directors, and tlie motion was carried. Mr A. Sligo proposed that in the opinion of the meeting the directors’ fees should bo increased from £250 to £-100, of which sum £l5O go to the chairman and the balance of_ £250 to be divided amongst the other directors. If the meeting could not carry this, he would move that the articles of association bo altered to meet the case. Mr Mitcudl seconded the motion. The Chairman said that the articles barred the way. Tho remuneration was fixed at £250. He agreed that this was somewhat meagre. Mr Brown added that if tixe shareholders so desired a special meeting could bo held subsequently to make tho necessary alteration. The shareholders, by a show of hands, indicated their wish that such a step should be taken. —Auditors.— The retiring auditors, Messrs W. 11. Holmes, F.I.A.N.Z. (Auckland), J. Thornhill Cooper, F.I.A.N.Z. (Christchurch), C. P. Powles, F.I.A.N.Z. (Wellington), and Win. Brown and Co. (Dunedin), were relucted. —Acknowledgments. On the motion of the Chairman, votes of thanks were passed with acclamation to Mr J. W. Henton (general manager), tho departmental managers, and tho stall generally. Mr John Mill returned thanks for his reelection, and said he was sure every shareholder felt grateful to Mr Kempffior.xc, and hoped he would enjoy his leisure. At the suggestion of Mr Hunter, it- was resolved to accord Mr Kempthorne a hearty vote of thank's for his services, the samp to be recorded in the minutes. Mr W. Brown also returned thanks for re-election, and Mr J, W. Henton acknowledged the vole so far us the staff were concerned.