MARATHON RUBBER FOOTWEAR, LTD.

Gisborne Herald, Volume LXXV, Issue 22619, 23 April 1948, Page 3

MARATHON RUBBER FOOTWEAR, LTD.

CHAIRMAN OF DIRECTORS’ REPORT In presenting the balance-sheet and accounts of Marathon Rubber Footwear, Ltd., to the eighth annual general meeting of shareholders on Friday, April 16, the chairman of (he company (Mr. J. R. Templin) said that the printed balance-sheet, manufacturing and trading account, and profit and loss account for the vear ended October 31. 1947. as presented to the meeting, gave a fairly complete account of the company's operations during the 12 months under review. Even in comparison with the war years, the year under review had had many problems. The greatest difficulty experienced had been shipping shortages. A very bad period occurred in the first half of 1947 when owing to strikes in Sydney, approximately £47,000 worth of rubber was held in Sydney from January until the end of June. Owing to the rubber shortage, production was reduced for most of June, during which time rubber was bought or borrowed from other manufacturers. When the rubber came to hand, stock was greatly ahead of normal requirements. but owing to the uncertainty of shipping it was felt that stocks should be carried for many months ahead. Tlie shipping position with regard to fabrics and chemicals had also been, at times, difficult. Outward shipping had also given much concern. So much so that during the past 12 months the company had sent over 7000 pairs of gumboots to Auckland alone by air freight. Labour was still in short supply- The Marathon plant, fully manned, had a total daily capacity of 4000 pairs of standard tennis shoes. 1000 pairs of quality tennis shoes. 900 pairs of heavy gumboots. 500 pairs of women’s and city gumboots. 350 pairs of children's bootees, and enough goloshes for New Zealand’s demands. However, owing to the present labour shortages it had been impossible to attain these figures, but in some sections desnite the labour shortage, production had been sufficient for New Zealand’s full requirements of some types of rubber footwear. Labour troubles were at a minimum during the twelve months and the Production Director considered he had a staff who. in the main, were working well in with (he firm’s poiicv and giving good service at a time when labour conditions were, generally, somewhat disturbed. Shareholders would be nlcnsed to know that the sal-vs for the year amounting io £367.544 showed an increase of £99,510 on the previous year’s figures. The net profit for the year was £38.563 after deducting £97.23 for depreciation and paying £B-6.000 for wages and salaries. Income tax would absorb £24.731. leaving a profit after tax of £13.782. which would leave available, together with the sum of £2424 brought forward from the previous year, a total of £16,205 for distribution.

Regarding dividend, the Company had paid 6 per cent, during the first t.wo years of its existence. T n the next five "years to conform w M h national policy the dividend rate had been reduced to 5 per cent., although earnines bad warranted a higher return to shareholders. The Company had now accumulated substantial reserves and the directors felt that thov were on safe grounds in recommending a dividend of 74 per cent. This dividend, free of 'Ntational Security Tax. would absorb £4218. A transfer of £BO6O to General ■Reserve would make the General Reserve Fund £20.000. It had also been considered wise in view of the fluctuations that, had taken place in +he price of crude rubber (which the Managing Director has seen fluctuate from 12s 7d per lb in IfPI down to lrfd ner lb in 1932). to set aside the sum of £3OOO out of the year’s profits for a Piibh«r Equalisation Fund. There would be a balance of £938 to carry forward to Appropriation Account. No capital expenditure other than for a cafeteria was contemplated for the current year.

The Chairman said he would take the opportunity of expressing his appreciation of ihe work done by members of the staff, all of whom bad contributed to the successful showing for the year under review, and for the support given tire company by the Wholesale Warehousemen and Retail footwear trade. Those remarks were endorsed bv Mr. G. W. Skellerup, Managing Director of the Company, who expressed his keen apnreciation at, the willing co-operation shown by all members of the staff. (Extended Report Published by Arrangement). 977