PARA RUBBER COMPANY LIMITED: TURNOVER EXCEEDS £600,000

Gisborne Herald, Volume LXXV, Issue 22816, 10 December 1948, Page 3

PARA RUBBER COMPANY LIMITED: TURNOVER EXCEEDS £600,000

The annual meeting of the Para Rubber Company, Limited, was held on Monday, December 6, 1948, in the office of the company, 173 Cashel St., Christchurch.

The sales for the year at £019.113 showed an increase of £35,041 on the previous year. Profit for the year before income tax was £34,620, being a reduction of £4021 on that of the previous year. The net profit, after providing income and social security taxes, was £15,420. General overhead expenses showed an increase of £2167. depreciation an increase of £1032, and salaries and wages an increase of £4900. With the balance of £l2l carried forward from the previous year and the net profit for the current year of £15,420, there was £15,541 available for distribution. 10% Dividend Declared It was decided to pay a dividend of £3066, being at the rate of 10 per cent on the paid-up capital, to transfer £5135 to general reserve, which with the profit on the sale of shares in Cotton Bros. Limited, of £38.865 brings the general reserve to £82,000. and to carry forward the amount of £7340 to profit and loss appropriation account. The chairman, Mr. G. W. Skellerup, in his remarks said that the past year may be taken as a termination of the boom business that had existed since 1946. Imported and local manufactured goods were coming to hand, and this, coupled with the reduced value of stocks, would result in lower profits being made for the current year. Whilst the high volume of the past three years could not be maintained, the company was so well placed through its import connections and local associations to meet competition, it could be expected that the company would continue its unbroken record of earning a dividend each year of its 29 years of trading. The stock in hand at April 30th showed an increase of £59,276 on that of the previous year. Stocks have been steadily reduced since the closing of accounts and are now at a considerably lower level than the figure shown in the trading account.

The present year would present considerable difficulties for the directors and management. The appreciation of the New Zealand exchange had reduced the value of a considerable quantity of the stock, but the directors and management had adopted a policy of cautious buying so that a fall in stock values in the next year or two should not catch the company unprepared.

The retiring directors, Messrs. G. W. Skellerup, J. A. B. Cookson. V. R. Skellerup. D. Davies. G. D. Faille and J. J. Craddock, were re-elected. Mr. Rocke O'Shea was reappointed North Island director. Messrs. Stewart. Beckett, and Company, the company's auditors, were reappointed. A vote of thanks to the directors and the staff was carried. —P.B.A.