Commerce, Mining, & Finance

Evening Star, Issue 22880, 11 February 1938, Page 6

Commerce, Mining, & Finance

N.Z. Refrigerating Company e Accounts of M. K: Millinery

Investment Market Undertone Easier

New York has maintained its recent improvement, begun on February 7. Yesterday the market advanced with an increased turnover. Opening .after a holiday yesterday, the local investment market was slightly easier with recorded business restricted to one reported transaction. Australian mining stocks failed to attract buyers. , Reviewing the company’s operations Mr W. H. E. Flint (chairman of directors) at the annual meeting of the New Zealand Refrigerating Company Ltd., said that, although the gross earnings were better by £3,448, this increase was largely offset by a rise in general expenses. He also added that, after consideration, the directors did not think it would be prudent to revert to the practice of paying interim dividends. Mr Flint referred to the taxation born by the company, adding that while taxation - absorbed nearly 40 per cent, of profits, there was little inducement to risk capital in hew enterprises or to spend money in the development of new processes. A slight rise in profit is recorded by M.K. Millinery Ltd. for the year ended December 81. Dividends recommended by the directors again aggregate 18 per cent, oy the company’s increased capital, and if the proposals are approved shareholders will receive a final - dividend from the capital called Dp last August, although the company has had the use of this sum for only fo.hr months.

N.Z. REFRIGERATING COMPANY FIFTIETH ANNUAL MEETING REVIEW OF OPERATIONS The fiftieth annual general meeting of shareholders of the New Zealand Refrigerating Company Ltd. was held in Mr W. H. E. Flint (chairman of directors) presiding. Reviewing the annual accounts, the Chairman said, inter alia, that the balance available for appropriation was £102,182 9s, being £4,280 12s 6d more than last year. The gross earnings at £112,315 3s lid were larger by £3,443 6s 9d, but this was offset by an increase in general expenses, mainly as the result of the increases in salaries called for by recent legislation, so that tbe net balance on the year’s operations was practically the same as the previous year. This was after providing for income tax and depreciation, and, with regard to the former, he repeated what he had said a year ago, that the present rate of tax at 7s 6d in the £ was too great an imposition upon industry, and must, in the long run ; have a crippling effect, for while taxation absorbs nearly 40 per cent, of profits, there was little inducement to risk capital in new enterprises or to spend money in the development of new processes. , With regard to’ depreciation, shareholders would be glad to know that a rather larger amount _ (£27,000) had been written off buildings and plant tbit last year. “ Apart from wool, markets generally favoured us last year, an exceptionally good summer in England, combined with higher purchasing power resulting from increased prosperity in the United Kingdom brought about an excellent demand for our mutton and lamb during the second half of the year.' “The last five years roughly cover the period of recovery from the world slump' which continued from 1929 till the beginning of 1953. During the slump this company, in common with many others, suffered severe losses, and it is gratifying to be able to record that under the more favourable conditions, we have been able gradually to restore and build up our finances. “ The position of the locally-owned companies is not a matter which concerns shareholders only, for it is recognised that in the interests of producers it is esesntial that the open door' to the British market should be preserved, and this is posaible_ only so long as the locally-owned freezing companies are able to provide an independent service for the distribution of our meat products-in the overseas markets. “ During this period we have steadily expanded our distribution of meat and by-products direct to retailers and manufacturers overseas. While our operations in New Zealand are carefully controlled, and we constantly aim at increasing the efficiency of our factories, tbe success of our . operations must always largely depend upon the arrangements for the distribution of our products in overseas markets. INTERIM DIVIDENDS. . “ We have received suggestions from shaherolders that w© should revert to tbe practice of paying interim dividends, Tbe directors have considered this suggestion, but feel_ that the position has not altered since they last dealt with it in 1936, when we reported to the annual meeting that as we were largely dealing with a perishable commodity bought in New Zealand for marketing mainly in _ England, and not realised for anything from three to six months or longer after we have paid for the produce, we thought it would not be prudent to disburse a dividend when the financial result of tbe year’s operations is unknown. We promise not to forget the matter, knowing it is of concern to a number of shareholders at such time as our circumstances, financial and otherwise, will permit. INCREASED COSTS. “ The directors are seriously concerned with the lincreased costs that have to be borne by the industry as a result of the present wages tendency. It is calculated that, on a conservative view, the working costs since the end of 1935 have been increased by a figure approaching three-quarters of a million pounds per annum in the freezing industry in New Zealand, representing more than 8d a head on lambs and Is on sheep. You will realise that in the long run this extra cost is an additional burden on the farming community.”-

M.K. MILLINERY

EXTENSION TO NEW LINES FINAL DIVIDEND FROM INCREASED CAPITAL The profit of M.K. Millinery Ltd. for the year ended December 31 was £6,528, after making provision for depreciation, etc., but before providing for income tax. This compares with £6,385 in 1936 and with £5,494 for six months to December 31, 1935, the initial period of the business as a public company. The dividends recommended by the directors again aggregate 18 per cent., but are to be paid on the company’s increased capital. With £233 brought into the accounts there is £6,761 available. It is proposed to carry forward £lO4. The balance of the company’s uncalled capital of £4,997 10s Was called up in August, and if the directors’ proposals are approved shareholders will receive the final dividend on this sum, although the company had had use of the capital for only four months. The report states that trading has been even more difficult than in the previous year, and had necessitated not only a complete revision of the marketing policy, but also the introduction of new lines of manufacture. During the year the company had taken over two businesses manufacturing other lines than millinery. This fact had brought a|pout the increase of goodwill. The full benefit from the purchases should be felt in the current year. Owing to the many lines now made by the company the directors are submitting a proposal to shareholders for an alteration of the name of the company to M.K. Manufacturers Limited. The percentage of wages cost on turnover had increased by 6.40 per cent., but turnover had been increased by a reduction in prices. This had had the effect of spreading fixed overhead expenses over a larger turnover. In September shareholders approved of the subdivision of the company’s £1 shares into units of 5s each. The total of assets is £61,507, an increase of £21,194. ' THE PROPERTY MARKET METROPOLE BUILDING PASSED AT AUCTION Messrs N. and E. S. Paterson Ltd., acting under instructions from the Perpetual Trustees Company Ltd., as trustee in the estate of H. Lethaby, offered for sale by public auction yesterday the Metropole Building, St. Clair. Occupying a corner site fronting Forbury road and Bedford street, this building is subdivided into two shops and five flats. There was a small attendance of the public, and bidding was slow. The highest bid failed to reach a previous offer by a private buyer, and the property was passed in. It is understood that a private sale will probably be effected.

GRAIN CROPS ESTIMATED AVERAGE YIELDS \ [Per United Press Association.] WELLINGTON, February 10. The following are the estimated average yields per acre of wheat, oats, and barley for the season 1937-38, as pubIsihed in the ‘ Gazette ’ to-night:— Wheat.—North Island, 34 bushels ; Nelson, 30: Marlborough, 43; Canterbury, 32; Otago, 28; Southland, 34. Oats.—North Island, 39; Nelson, 34 ; Marlborough, 43; Canterbury, 40; Otago, 39; Southland, 48. Barley.—North Island, 43; Nelson, 35; Marlborough, 44 ; Canterbury, 38; Otago, 33; Southland, 39. The estimated averages for the Dominion are:—Wheat, 32; oats, 42; barley, 39. In accordance with the above estimates the total yield of wheat should bo approximately 5,730,000 bushels, compared with an actual yield of 7,168,963 the previous season.

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