MARATHON RUBBER FOOTWEAR LTD.

Evening Star, Issue 26067, 3 April 1947, Page 3

MARATHON RUBBER FOOTWEAR LTD.

SEVENTH ANNUAL GENERAL MEETING Mr J. R. Templin presided over the seventh annual general meeting of shareholders of Marathon Rubber Footwear, Ltd., which was held in the Chamber of Commerce Library, Christchurch, on March 31, 1947. The balance sheet and profit and loss trading accounts had been circulated to shareholders and showed sales for the year at £268,034. Gross profit for the year amounted to £38j232; which, after deducting administration expenses, left a net profit for.'the year of £23,377. After setting aside £15,000 for taxation' this left available, together with £687 brought forward .from the previous year, and an amount of sundry expenditure of £864, a total of £9,928 for distribution. ,

It was decided to pay a dividend of 5 per cent., free of social security tax, which would absorb £2,504; to transfer -£5,000 to general reserve, and to carry forward the. balance of £2,424 to, appropriation account. After the above transfer to general reserve, this fitiid will' stand 'at £12,000, which, with unappropriated; profits of £2,424, represented 27.9 per -cent, of the paidup capital., . The annual report presented to the shareholders pointed out that since Mr G. W. Skellerup' formed this company seven years ago, he had consistently advocated a conservative policy regarding dividends and the building up of substantial reserves. Dividends had been regularly paid—6 per cent, until 1942 when oh account of the war it whs, deemed advisable, to reduce this to‘ 5 per cent.’ The present sound position of the company’s finances was mainly : due to Mr G. W. Skellerup’s allocation of profits. The authorised capital had been increased to ’ 70,000 shares of £1 each, and ,the ‘paid-up; capital had been increased by approximately £IO,OOO, giving a total paid up capital at this date of £51,706, and a total reserve, including'ainburit to the credit of appropriation account, of £14,424, which gave each fully paid share a value of 25s 7d. ; The directors ; had been diligent in; endeavouring to build up reserves. -It had been difficult to accumulate substantial reserves with the high -rate •?’£, incometax which had ruled during the whole of the company’s existence.. Income .fax for tfie current year amounted to £15,000 and was approximately 30 per cent, of the paid-up capital, and more than the total amount, of reserves that had been accumulated over seven years of ni&unfrictufing. _ . ' The stock position. had been difficult, but ' in the main,. by forward buying, the . company had: sufficient stocks in sight of tennis shoe arid gum boot fabrics to carry on to the end of- 1947,-,and enough rubber was in- transit, or being shipped, to suffice for;af least six months. The shipping difficulties had been t the greatest worry.. .Considerable ' shipments of rubber, had remained in Sydney for over two i months j arid transhipments from the North Island ports caused constant concern. " Stocks of chemicals were fairly, satisfactory, except that the company, was extremely short of pigments. At the present moment tennis shoes were- being made with - a!'- black trim -and crepe soles, white pigments not being obtainable anywhere. It "Was , only 19 months since the war in the Pacific ended, and much had beeri done since then. - During-the year, the staff had - given the fullest co-opera-tion. ...

’ The. production of; new styles of gum boots was tinder way and as soon as labour was available: the company was re&dy to; introduce new; types of tennis shoe’s alto. -' 1 Mr W..H. Bremner, superintendent of rthe-plant, dealt witli .factory operations overi .the year and stated that for the financial year covered by the accounts, the cbmpariy. had produced 120,000 : pairs ,of gum boots, 16,230 pairs of , bootees, and . 395,000 pairs of ■ tennis ' shoes: Employees now totalled, 234. Stocks of fabric and rubber were generally satisfactory. Additional, production units were now ready and it was hoped that in the very near future, the gum boot department, woiild be producing 1,000 pairs of grim boots per day in addition to. goloshes, [arid: light, rubber footwear. Mr Bfettmer stated that a lot of ; cfedit . was due to Jiis staff. generally expressed their, appreciation of. the year’s results. • , : ■;Mr Shepherd stated that he had been a shareholder , since [ the inception of the comfiariy, [and expressed his warm appreciation, of the efforts of Mr G. WV -Skellerup in .establishing the rubber footwear industry in New Zealand, arid - congratulatd him on the success that had rewarded his and the. company’s efforts. He mentioned that , during a recent visit to a dairy farm, he'found that a. farmer who was wearing Marathon gum hoots was quite positive that the, boots hadbeen iniported, as he thought the quality was too-high for the boot to be a local product. • '■ The;’ retiring ;directors, • Messrs J. R. Templin, A. Anderson, J. . A. East, Wj-H. .Bremner; P. J. Skellerup, were re-elected; Mr R. p’Shea ivas reelected as the -North Island ‘ director,. iThe-retiring auditors, Messrs Wm. Jameson and Sons,, were also reelected. .■ ■’The 'meeting concluded, with a vote of ;-thanks to -the chairman, directors, arid'staft. >• • (P.8.A.)