DOMINION FERTILISER COMPANY

Evening Star, Issue 22347, 25 May 1936, Page 11

DOMINION FERTILISER COMPANY

RECORD YEAR EXPERIENCED ANNUAL MEETING OF SHAREHOLDERS Both in production and in sales, the year just past was a record for the company, and likewise, the profit earned was the largest in the history of the company, stated tho chairman of directors (Mr Robert G. Hudson) to the annual meeting at Ravensbourne this afternoon of shareholders of the Dominion Fertiliser Co. Ltd. Mr Hudson said that after making full provision for depreciation, income tax, and paying all charges, the profit for tho year amounted to £17,422, 6s 9d, or au increase for the year of £1,496 18s lOd. Mr Hudson said that they would note from the report that, subsequent to the closing of last year’s accounts, the directors made further provision for depreciation to the extent of £1,485 8s 7d. This sum was allowed by the Commissioner of Taxes, in addition to the, provision of £7,460 8s made in last year’s accounts, and resulted in a saving of income tax amounting to £347 0s sd. These transactions reduced the balance brought forward into this year’s accounts to the sum of £1,994 2s sd. This amount, added to the profit of £17,422 6s 9d, brought the amount available for appropriation to £19,416 9s 2d. From this sum the directors had applied £6,000 in reduction of the balance of the established account, and they now recommended the payment of a dividend of 4) per cent, per annum, which would absorb £10,825 3s Id, leaving a sum of £2,591 Cs Id to bo carried into tho current year’s accounts.

For the year under review the sum of £8,716 11s had been allowed by way of depreciation and the total sum provided by way of depreciation during the five* years in which 'the company’s plant had been operating now amounted to £40,795 16s lid. During the same period a sum of approximately _ £19,500 had been applied in reduction of preliminary expenses and establishment accounts, and the balance of the establishment account amounting to £IO,OOO was now the only unsubstantial item in the balance sheet. The balance sheet of the company shows a strong liquid position," said Air Hudson. “ The accounts under review show that investments have increased during the year by the sum of £31,840, and likewise raw and manufactured stocks have increased by £ll,491. The liquid resources of the company enabled the directors, during the year, to make very substantial purchases at prices distinctly favourable to the company. In particular, the company was able to undertake the purchase of a full shipment of sulphur from Sicily, at a price that represents a large saving to the company. At balance date the company had in stock a very considerable portion of this shipment which would cover the requirements of the company, at present rate of manufacture, until January next. In similar manner, jute sacks were purchased on a favourable market and the company’s requirements arc covered by stock for many months to come.

“ During the year more than 27,500 tons of raw mateiials were received over the Ravcnsbourne wharf, and substantial quantities were shipped outwards. In addition to materials received over the Ravcnsbourne wharf, approximately 2,000 tons were dealt with at either Port Chalmers or Dunedin. It may interest shareholders to know' that the average cost last year of receiving rock phosphate into the works Was under lOd per ton. This figure wall prove the advantage which' tho company has in the location of its factory with direct access to deepwater berthage. OPERATION OF WORKS. “ The company’s works have now been in operation for five years, and the fact that during the period practically no capital expenditure has been incurred is testimony to tho thoroughness with which the plant and premises were designed and erected. Tho plant lias been kept in excellent state of repair by substantial renovations and replacements, and to-day is thoroughly efficient. A fairly largo sum was expended during the year in cleaning and painting all the outside wood, iron, and concrete work of the buildings, and 1 feel the works and the gardens surrounding them are a credit to the management and workmen of the company. The sulphuric acid plant has been in continuous operation sinpe January, 1930, and recent reports from the

the established custom, the reduction in cost of rock had been set off by a reduction in the Government subsidy, and the amount of the subsidy on superphosphate as from July 1 last was reduced to the sum of Is 9d per tqu.” Mr Hudson said it would interest shareholders to know that the 10 per cent, reduction in wages made by general order of the Arbitration Court in 1932 was restored by all superphosphate manufacturing companies in July of last year. “ The company is fortunate in having associated with it men with a lifetime of experience in the fertiliser industry,” continued Mr Hudson. “ Both Mr H. D. Kerr and Mr E, W. Trend bring to the company long experience and great knowledge of the many problems met in the economical production of acid and manufacture ■of fertiliser. To Mr Kerr and Mr Trend, and the whole of the works staff and employees, and to the secretaries, I would like to express my appreciation for their loyal services rendered during the year. , • “ I would also like to record the exceptional service rendered to the company by Fertilisers (South Island) Limited, under the capable management of Mr S. P. Cameron, and to the British Phosphate Commissioners and to its New Zealand manager, Mr V. R. Robb, for the, helpful service to the company throughout its history. “ I feel that the success of the company, as a manufacturing concern, is bound up with the efficiency of its sales service. The companies manufacturing fertiliser in the South Island recognise that a substantial part of the increased business which the companies have enjoyed in recent years is due to Mr Cameron and his staff. Their activities, I am sure, are creating the right appreciation amongst farmers, of the value of fertilisers, and as a result of their efforts I look forward to increased business in the future. The increased business secured this year by Fertilisers (South Island) Limited has enabled the cost of selling to be reduced by Gd per ton. This reduction in selling costs is reflected in the profit earned by this company.”

superintendent (Mr Kerr) show that chemical efficiencies are high, operating costs' low, and depreciation is reduced to a minimum. FERTILISER PRICES. “No alteration has been made in fertiliser prices during the year, although the late Government had brought the industry under control through Board of Trade regulations, and prices arc now determined by these regulations. During the year a further reduction was made in the price of rock phosphate supplied by the British Phosphate Commission, in accordance with