KEMPHORNE PROSSER, & CO.

Evening Star, Issue 19519, 29 March 1927, Page 2

KEMPHORNE PROSSER, & CO.

ANNUAL MEETING —H.Z. DRUG COMPANY, LIMITED SOUND POSITION DISCLOSED The annual meeting of shareholders of Messrs Kempthonie, Prosser, and , Co.’s New Zealand Drug Company, Ltd., was held this afternoon, the chairman (Mr W. F. Edmond) presidUlg ‘ DIRECTORS’ REPORT. The directors’ forty-eighth report and balance-sheet stated that tho unappropriated balance brought forward from tho profit and Joss account last year was #123,342 7s 6d, and the net profit this year £57,134 9s 4d, which, less interim dividend for half-year to July 31, 1926, at U per cent., of £20,942 15s, left £59,534 Is lOd to be dealt with. It was proposed to apply this iis follows Payment of a dividend of 3j) per cent, and a bonus of 2 per cent., making 10 per cent, for the year, £27,356 17s sd; addition to general reserve, £6,000; contribution to staff provident fund, £1,000; and to carry forward to next year £26,177 4s sd. Messrs A. Bathgate and F. W. Mitchell were the retiring directors, but were eligible, and offered themselves for ve-election. The directors greatly regretted to report tho death of Mr John Mill in August last, and Air James W. Heaton on March 1. Mr Mill had been a member of the board lor twenty-live vears, and had rendered valuable service to the company. Mr Hentou had been for fifty-two years a member of the company’s staff, fourteen years as general manager. He retired from this position in February, 1918, and occupied a seat on.the board from that date till the time of his death. Mr Henton’s record was one of hard wmik and consistent effort for the advancement of the company. To fill the vacancies on the board which had occurred the directors had appointed Messrs F. M. Oldham and Wm. Taylor. Both these gentlemen retired in terms of the articles, and offered themselves for election by the shareholders. The auditors retired in the usual course, but were available for reappointment, and offered their services accordingly. A dividend of 31 per cent, and a bonus of 2 per cent, was now lecommended on the shareholdings on the register of 9th March, making, with tho interim dividend already paid, a total of 10 per cent, for the year. CHAIRMAN'S ADDRESS “ I should like, with your kind permission, before referring to the actual business of this meeting, to bring under your notice several changes in the board that have taken place since our last annual meeting,” said the chairman (Mr F. W. Edmond), in moving the adoption of the report. “Mr Bathgate, after ably occupying the position of chairman for a period of twelve years, decided, through indisposition. to retire from the chair, though still retaining his seat on the board.” he continued. “In the years that Air Bathgate acted as chairman the development of the company has been most marked, and the success which has resulted under his administration must bo very gratifying, not only to shareholders. but to himself I have further to report with sincere regret that since our last annual meeting we have lost the services of two highly-esteemed members of the directorate. Mr John Mill, who died in August last, was a director of the company for twentyfive vears. and by his long connection and application to the duties attaching to the office had been a most valued member of the board. By the death on the Ist of the present month of Mr James W. Hentou, who had occupied a seat on the Board of Management since 1918, the company had lost the advice and initiative of one who had been connected with the business for over sixty years His record of service with the company is one not only of long duration, but of excellent attainment. During his term of ofik‘o as a director his knowledge of the needs of tho business was 'highly esteemed. The vacancies that occurred, as mentioned, were filled by tlie appointment of Messrs F. M. Oldham and William , Taylor. ’ “The company’s Various qrug warehouses and chemical lertiliser works have all boon most busily engaged dur- . ing tho whole year. This result has been achieved by, keeping well-assorted and adequate stocks or all classes or needfql goods, and by a most careful , and <inorgetic buying, filing, and | manufacturing organisation. | “It gives me great pleasure to ad- ; vise you that the erection of the com- ; pany’s new fertiliser works at Wan- , ganui proceeded without cessation dur- • ing the year, ami that we were able ‘ to start up the entire plant at the end of the September month, about the ; date indicated at our meeting'in March , last. Representatives of the board proceeded to Wanganui for the purpose ; of seeing tho plant in operation, and wore highly pleased witn the manner in which the whole work had been carried out. The buildings as erected, and the whole plant as installed, reflect the greatest credit on the woru. | nf the architect, contractor, and tho | company’s engineers. Shareholders will i be pleased to know that the output of the works' up to present date may be considered as quite in accord with expectations. „ , „ “ Tho establishment of a staff provident fund as outlined at the last annual meeting was duly proceeded with, and shareholders will bo pleased to have the knowledge that over 90 per | cent, of tho staff of the company that were eligible accepted the offer to become members of tho fund. As it was InfiA in the year before tbo applications closed, the sum of £I,OOO, which it is proposed to apply to tho fund this year, is deemed ample to augment the contributions of the members. “ You have all no doubt heard of the competition in tho fertiliser trade in tho North Island _ of tiro dominion , which has resulted in a break in prices. | I wish to assure you that this phase | of trade is at times inseparable from ; large manufacturing undertakings, and ; it should he borne in mind that sooner i or later these misunderstandings and disagreements come to an end, with j tho ' result that reasonable selling, pxdces are attained. i “ I now propose to draw your attention only to the outstanding features ! of both the balance-sheet and profit and loss account. With regard to tho liabilities, the paid-up capital of the company at January .31 amounted to , £511,094, having bee'n increased during j the year by the sum of £63,050, repre- , seated by the payment by shareholders ,of calls on-the new issue shares during the past year. Calls paid, in advance (£9,795) is very much less than the figure appearing in last year’s balancc--1 sheet, transfers having been made a' calls became due during the past year, ft is recommended that tho sum ol 96,000 bo apportioned out of the pro fits' of this year, and if approved a' this meeting general reserve will ther stand at £137,000. By adding tin carry forward in profit and los (£25,177) it will he seen that we basin reserve a total of £162,177. _ Tb reserve on book debts (£5,360) is idev tical with the figures of last year. Tlr account is intended to show a reserv. of 5 per cent, on all customers’ ac counts. On this occasion it is slighth in excess of 5 per cent, owing to the book debts at January 31 being a j trifle smaller than those twelve months ago. Open accounts and other liabilities (£151,619) compared with the figures given in our last balance-sheet, this account shows an increase of £58,876. This is mainly represented by very large shipments of goods arriving just before the Hosing di tho

books, payment for which would not bo made for some time after the balance dated’ “ Turning to the assets,” the chairman continued, ‘‘stocks at £2.58,571 show an increase, in valuo_ of £40,714. The hulk of this 'increase is ’for stocks of raw materials, etc., for our Wanganui works, together with a slightly increased stock at other works oi the company. The stocks_ are of a most representative and varied nature. ‘‘Laud, buildings. and plant (£441,198), compared with the figure shown in our balance-sheet last year, shows an increase of capital expenditure am'ounting to £(37,717. This is largely clue to the completion of the company’s now fertiliser works at Wanganui. payments in connection therewith Living proceeded throughout the whole of our trading year. Payments were also made on account of capital expenditure at other branches, and these are all incorporated under this heading. It will bo noted that £IO,OOO has been provided for depreciation; this in the opinion of the board is deemed ample to provide adequate reduction in value on all our buildings and plant throughout the dominion. All the properties of the company have been maintained in a state or thorough repair. Customers’ book debts (£104,746) and bills receivable (£24,022), when aggregated, are somewhat less than last year. The difference, howover, is small, and this may bo regarded favorably. Before closing the books all accounts wero the subject of close inspection, and all bad and doubtful debts have boon provided for. It will be observed that our customers’ bills have not been discounted. I have pleasure in stating that the book debts appearing on the balance-sheet are of a particularly sound nature. “Other open accounts (£24,471), compared with the year previous, show an advance of £ll,OlO. The balances comprising this item represent transactions other than with customers; they .ire more or less of a temporary character, being largely in payment rcr goods awaiting' shipment in .London and in transit.

‘‘ Dealing with the profit and loss account, it would bo noted that the. net result of the year’s trading was £57,134 9s 4d, to which must be added the unappropriated balance from last year, £23,342 7s 6d, less the interim dividend of 4| per cent, paid in September, leaving £59,584 Is lOd. Out of this it is proposed to pay a dividend of 3i per cent, and bonus of 2 per cent. (£27,356 17s sd), making, with the interim dividend, a total of 10 per cent, for the year, to add to general reserve £6,000, to contribute to staff provident fund -£I,OOO, and to carry forward to next year - £25,177 4s sd.

“It is hoped that shareholders will be gratified with the result _of the year’s trading as disclosed in these figures. The continued progress of the companj' has been the first consideration of the board of directors, and in this connection the able co-operation of the general manager is now acknowledged; also the excellent service rendered by the staffs of the company throughout the dominion. I feel sure there is no need to Silggest that this splendid record of service deserves the hearty approval and thanks of shareholders.”