MOSGIEL WOOLLEN MILLS

Evening Star, Issue 21254, 8 November 1932, Page 1

MOSGIEL WOOLLEN MILLS

STRONG FINANCIAL POSITION NO REDUCTION OF DIVIOENDS The strong financial position of the Mosgiel Woollen Mills Company was commented upon at the : fifty-ninth an'nual meeting of the company this afternoon, the Chairman (Sir John Roberts) intimating that the directors saw no reason for recommending any reduction of the usual 10 per cent, dividend.

.. .. In 4;;<y|eniing yum .ml report and Sir John* stated ‘tlffi't the past year’s work of the company had been carried out under somewhat exceptional circumstances. The dominion had been subjected to an undesirable state of finance, and this had necessitated the Government being called on to impose high taxation. This has resulted in the inhabitants having to pay taxes which were never previously levied. The result of this was the lessened purchasing power on the part of the people. It was difficult to make any estimate of what future taxation would be. They had the assurance of the Prime Minister that no increase would bo imposed this year, but it was difficult to think that none would be required next year. The dominion was not by any means in a comfortable position, and personally he was of the opinion that increases in taxation could not be avoided.

“ There is no doubt the position will tend towards a reduction of the sale of this company’s products,” said Sir John. “ 1 am glad, however, to say that our sales for the past year are almost normal, and shareholders will no doubt bo pleased to know that the directors see no reason for recommending any reduction of the usual 10 per cent, dividend. As to the future, 1 think we can confidently realise that the very strong financial position in which the company is in will enable us to overcome any trouble that may arise, as we have a considerable sum in cash and liquid securities which is always available.

‘‘ At our last meeting 1 stated that the value of the .exports of New Zealand was £20,000.000 less than three years ago, and 1 regret that 1 am unable to say that this heavy shrinkage has been made up. The values of our dairy produce have slightly increased of late, but it seems likely that this improvement may not he sustained. Wool has for some time maintained a poor level of values, but at the late Loudon sales a rise of 10 to 20 per cent, was noted. Shipments of frozen lamb have increased, but a serious tall in prices has taken place, and it is" now selling at 4£d to sd. 1 trust that we mav soon have a material increase in the' values of all our produce, as it is badly wanted. • “ Turning to the accounts for the year, there are a few notes which 1 will make by way of explanation. In the balance-sheet the only item on the liabilities side to note is that sundry creditors, etc., shows an amouqt of £17,215, against £15.224 last year, an increase of £1,991. This is largely accounted for by an increase of income tax. On the assets side it may be noted that the increase in Government bonds amounts to £IG.BGO, but as against this hook debts have decreased £3,328 and bills receivable are down £1,440. Goods manufactured and in process are down £5,064, and land, buildings, and machinery show a decrease of £3,12G after allowing the usual £5.000 for depreciation. Turning to the profit and loss account, the only item requiring any special mention is charges, salaries, etc., amounting to £20,520, which shows an increase of £4.435, due to the inclusion of discounts and fire insurance,, which appeared in last year s accounts as separate items.” In conclusion Sir John said he regretted that Mr Moodie, one of their auditors, had passed away during the year. Ho had again much pleasure in expressing his own and the board's appreciation of the excellent services rendered by Mr Wood, the warehouse staff, and all the employees at the mill. He then moved that the balance-sheet and profit and loss account be approved, and that a dividend of 4 per cent, with a bonus of 2 per cent, bo [laid on the paid-up capital for the half-year, making, with the interim dividend in April, 10 per cent, for the year.