BRUCE WOOLLEN COMPANY

Evening Star, Issue 24056, 1 December 1941, Page 2

BRUCE WOOLLEN COMPANY

ANNUAL MEETING OF SHAREHOLDERS RECORD TURNOVER FOR YEAH At the animal meeting of the shareholders of the Bruco Woollen Manufacturing Company Ltd., held on Friday, the chairman was Mr F. L. Nicolson. The Chairman referred lo the death of Mr Fetor McSkimming, a former chairman of directors. Mr Nicolson said that Mr McSkimming joined tho board of directors of tho company in November, 1927, and was appointed to the position of chairman in August, 1933. Under his enthusiastic guidance the reorganisation of tho affairs of tile company proceeded apace, and with a thoroughness that only those who knew him personally and wore directly connected with him in the business of the company could appreciate fully. The meeting stood as a mark of respect. Moving tite adoption of the annual report and balance sheet, the Chairman staled that this year had been a record one as far as turnover was concerned, this being reflected by the increase of £26,222 19s 8d in gross profit when compared with last year. The net profit shown in the profit and loss account, £20,149 6s 7d, showed a decrease of £3,566 Os 9d, this being accounted for by tiie increased provision of £61,500 for taxation, and depreciation allowance of £12,150, as compared with £36.000 and £6,000 respectively for 1940. The amount of £8,058 11s 7d brought forward from last year, together with the net profit of £20,149 6s 7d for the } - ear under review, made the total in tho protfi and loss appropriation account £28,207 18s 2d, which the' directors recommended bo dealt with as follows:—Payment of dividends on cumulative preference shares, £2,800; payment of dividend on ordinary shares of 6 per cent., £6,000; payment of bonus on ordinary shares of 2 per cent.. £2,000; transfer to reserve account. £8,000; carry forward, £9.407 18s 2d. The distribution to shareholders recommended was tho same as last year, while the amount to be transferred to reserve would bring the reserve account up to £30,000. “ The maintenance of the dividend on ordinary shares at la'St year's figure will be welcomed by shareholders,” he said “ You will have noted from the balance sheet that the bank overdraft lias disappeared, and that after the 12 months’ trading this item, which stood at £2,303 7s lOd last year, has now changed to a credit of £17,027 19s sd. Deposits also show a reduction of £470 7s 7d when compared with last year. The satisfactory position of these two items accounts for the reduction in the interest group shown in the profit and loss account, which is less by £2,274 7s Bd.” Taxation in the form of income tax, social security and national security taxes presented a very heavy load on the finances of the company, as depicted by tho amount placed to I’eserve against its payment this year. The total amount reserved for payment of taxation during tho past three years had been £107,500. If the present import restrictions were to remain in force expansion would be necessary in the industry, and this, incidentally, would absorb additional labour. To carry out expansion, however, in any industry it is necessary to have funds available, and while they appreciate the necessity for funds to prosecute the war they bad to realise that if industry was crippled with taxation, internal funds would not be available for expansion, and tho difficulties that they bad experienced in the past regarding the rehabilitation of returned men would be in grave danger of recurring. “ During tlid past two financial years attention has been given lo tho installation of efficient, up-to-date machinery to the extent of £25,360 to cope with tho additional demands for the manufacture of both defence and civilian requirements,” Mr Nicolson said. “ While the company , has undertaken its. full . quota of defence materials, it is regretted that only portion of the civilian demand could be met. This position is common to ail New Zealand woollen mills; but it is regretted that the shortage of labour, more especially female, has prevented us from reaping the full benefit of the additional new plant. Owing to the shortage of suitable local boarding accommodation, promises wove purchased, and after renovation were handed over to the Y.W.C.A. to run as a hostel for girls in tho hope of improving the labour position in the mill.

“ The continued shortage of suitable labour is ono of tho major in the mill to-day, and is causing tho directors considerable concern As stated previously, tho full benefit is not being derived from tho new plant, and it appears that, unless we can obtain the necessary bands to operate this to capacity, military requirements that are so necessary to our troops, here and abroad will be to au extent curtailed.” The chairman referred to the death during the year of Mr John P. Little, who had served the company for 30 years as hosiery manager. The adoption of tho annual report was seconded by Mr James Gray. Mr A. H. Allen, in supporting the adoption of the report and balance sheet, made reference to the high taxation provision, and stated that the company did not cavil at extra amounts required for war purposes. Expansion of the industry was necessary, and this could only bo effected by retaining the funds for this purpose. Taxation provision during the past three years was £7,500 more than the ordinary share capital of the company. Mr I’. L. Nicolson was re-elocted to the board of directors, and Mr Peter Polling McSkimming was elected unopposed to fill the vacancy caused by the death of his father. Mr John J. Lane, E.A., was re-elected the company’s auditor. Mr W. H. Hitchon moved a vote of thanks to the directors, management, and staff for past year’s work, and stated that a spirit of co-operation was evident throughout the organisation, which augured well for tho future success of the company, Tho chairman responded on behalf of the directors. Mr It. J. Lamb, general manager, in returning thanks c.n behalf of the management and staff, stated that the year had been a difficult one, nob a little due to the departure of many skilled mill employees with His Majesty’s forces overseas. The burden of supervision and training new labour had been cheerfully undertaken by tlic foremen and experienced employees.

SHARE MARKET

SALE BROKEN HILL The Stock Exchange opened this morning with n very quiet call-over after the weekend. There was no movement to report. SALE REPORTED. —This Morning.— Broken Hill, £2. DIVIDENDS. (P.A.) AVELLINGTON. Dpc. 1. The Stock Exchange Association has received advice of a British Tobacco 1 per-cent, final dividend and 2 per rent, interim dividend, both payable on December .'il. Advice has been received that lilackwaler Alines have declared a !)d interim dividend for 10-11, and Consolidated Goldfields 4-id, the final dividend for 1941.