DONGHY’S ROPE AND TWINE

Evening Star, Issue 22032, 18 May 1935, Page 25

DONGHY’S ROPE AND TWINE

COMPANY'S ANNUAL MEETING The annual meeting of Donaghy’s Rope and Twine Company Ltd. was held in the Chamber of Commerce rooms yesterday afternoon, when there were present Messrs George Black (chairman of directors, in the chair), A. C. Matheson and J. B. Shaddock (directors), and 12 shareholders, ADOPTION OF ANNUAL REPORT. bloving the adoption of the report and balance-sheet, the chairman said that during the year death had deprived them of the senior member -ol the board, Sir "John Roberts. The directors felt that they had lost a colleague who, by his great personality, luul endeared himself to all those connected with the company with whom he had come in contact. His wide and ripe experience had been of great value to them. To fill the vacancy created tho directors extended an invitation to Mr J. B. Shaddock, managing director of H. E. Shaddock Ltd., to join the board, and Mr Shaddock found himself able to accept. They felt sure that Mr Shaddock would render tho company good service. They had also lost through, death Mr Alexander Burns, an enthusiastic and valuable member ot the staff, whose services to the business had been greatly appreciated both by the management and the_ customers. The year just ended was in many respects very comparable with that reviewed last year, for if the diminished provision for depreciation and taxation was considered, together with the proposal to augment the reserve for providing benefits for employees, tne figures would be found to show only a trifling difference. Ample provision had been made for depreciation, taxation, and bad debts. Broadly speaking, the results of operations had shown a reduction in output of hinder twine, due to smaller harvest, offset by increases in sales ot rope and shop twines. Negotiations were proceeding for the installation of some more modern machinery, and tins could probably be installed and be in operation before the cud ot the jeai. Shareholders were being asked to agree to an addition of £i,ooo to the reserve for providing benefits for employees. The firm had in its service a number of employees approaching ages when in the natural order of events they could be expected to want to retire, and tho directors felt it wise to augment the reserve so that turtner accretions of interest from the extia amount might be added to the income - for providing benefits. He wished to make it plain, said Mr Black, that both the reserve and the income therefrom belonged to the company, and the income was disbursed at the discretion of the directorate to worthy employees as occasion and circumstances required. Income from reserve for providing benefits for the employees showed an accretion fvoni revenue, after out payments ot £l2B is Id, and now stood at £2,168 5s od. Sundry creditors showed an increase of £506 7s. 9d, and included provision for taxation. The amount reserved for taxation was £SOO less this year. On the assets side, land, buildings, and plant showed a decrease of £1,830, arising from the annual depreciation, less expenditure for additions and alterations during the year. The amount taken for depreciation was £BO2 2s 7d less than last year. Considering the already well written clown values, the depreciation provided was, in the opinion of the board, ample, it was the board’s recommendation that £1,500 be added to the_ reserve for providing: benefits for employees, and that sum was principally made up from thie reduced depreciation and the lower amount reserved for taxation. The stock account showed an increase of £3,588 7s 2d, principally owing to larger stocks of' higher grade raw material and a larger carry-over of manufactured binder twine. Book debts and investments, less reserves, showed a decrease of '£9B3 19s 4d, due solely to smaller book debts. The investments themselves remained unchanged. Bank account and deposits showed an increase of £1,228 17s sd. and this arose from the smaller amount of book debts owing to them at the balance date, increase of interest earnings, and other items. The profit and loss account for the 12 months showed a slight increase in turnover for the year, but expenditure was slightly higher. The depreciation of buildings and plant was £2,216 11s 6d. The difference between that figure and the amount taken last year had already been dealt with. Interest from investments showed an increase of £59 2s 2d. The balance left for appropriation amounted to £7,959 15s lid, compared with £6,462 ISs sd. The directors recommended the payment of a final dividend of lOd per share from trading results and 5d per share out of income from investments, which, with the interim dividend of 9d per share paid in October last, maintained the usual 10 per cent, for tho year. They also recommended the addition to the reserve for providing benefits for the employees of £1,500. Those recommendations, if approved, would leave £3,522 5s lid to carry forward, as compared with £3,525 8s 5d last year. The directors again recorded with pleasure the excellent service and care rendered by the general manager, tho Auckland manager, factory managers, and members of the staff and works employees. Their efficient handling and loyal co-operation merited their appreciation. The motion" for the adoption of the report and balance-sheet was seconded by Mr J. B. Shaddock and carried. ELECTION OF OFFICERS. Mr A. S. Fleming moved and Mr D. R. Noble seconded tho re-election of tho retiring directors—Messrs George Black and A. C. Matheson. —Mr Noble suggested that, as the articles provided for five directors, the board might consider an increase in the number to five, and, after some little discussion, the question was left for consideration and decision by the board.—Upon the motion being put to the meeting Messrs Black and Matheson wore unanimously re-elected, and both returned thanks. On the motion of Mr F. C. S. Archer, seconded by Mr A. Ibbdtson, the retiring auditors—Messrs Barr, Burgess, ami Stewart and Mr E. R. Smith—were re-elected at the same remuneration. A vote of thanks to the directors and staff was carried by acclamation, the chairman replying on behalf of the board and the general manager on behalf of the staff.