A GOOD YEAR.

Gisborne Times, 31 October 1928, Page 2

A GOOD YEAR.

G.S.F.M. AND M.. CO.’S SUBSTAN- ■ TIAL PROFIT. ,

ANNUAL REPORT

A profit of £18,722 15s 5d was made by. the Gisborne Sheepfarmers Frozen Meat and Mercantile Co., Ltd,,'during the past twelve months, according' to the annual report circulated-; to. shareholders,, who will meet to discuss the past year’s operations on November 24. • The statements are much more optimistic in their tone than for three or four years past. The text of the report is as* follows • , . .- d ;

“It is gratifying to record an increase in the quantity of stock treated, particularly the number treated on ‘owner’s account.’ As predicted in out* 1927 report, the expenditure ciViring that year /in making • the Works efficient and modern was amply justified. The handling capacity of the Kaiti works lias been increased and clients are now assured that we can cope with any quantity of stock they wish to freeze. The results of v the mercantile department are satisfactory, but, are still capable of improvement. The profits for the year amount, to £18,772 15s sd, and -to this must be added the brought forward balance of £24 9s Bd, making a- total of £18,797 5s Id, and it is proposed to deal with this as follows : To pay the freezing and mercantile preference share dividends £975 9s Bd, transfer to bad debts reserve account £15,000, carry forward £2821 15s sd, making a total of £18,797 5s Id. In accordance with the articles of association, four directors, Messrs J. \V. Nolan, R. Hall, E. M. Monckton and W. G. Sherratt, retire by rotation, but, being eligible without nomination, offer themselves for re-eleo-tion. The. auditors. .Messrs. Watkins, Hull, Hunt and Wheeler and Messrs Morris, Duncan and Gyllies, retire. Messrs Morris, Duncan , and Gyllies are eligible for re-election, and with Mr H. E. Dodd, will be nominated.” The genera} balance sheet of the Company shows that the revenue from freezing operations, fellmongery pelt charges,* sales of by-products, lighterage, commissions, etc,, at Kaiti, Tokomaru Bay and Hicks Bay works totalled £61,181, and the expenses £45,667,. leaving a profit of £ls 51 4'. The gross profit on mercantile trading, storage, wool handling, dumping, wool and stock commissions was £28,005. and the expenses totalled £22,276, leaving a profit of £5728. • The assets of the company are set out as under:—Freehold and leasehold property, machinery and plant, lighter plant, furniture, and fittings, etc. (allowing for depreciation), £672,356 15s 6dj consignments, less advances, £4983 10s 6d; stocks, shares and loans £21,287 7s 9d; unexpired insurance premiums £2771 19s ; mortgages. £sßo'; sundry debtors —secured, partly secured' and guaranteed accounts, open accounts (including reserve for bad and doubtful debts, £3414 4s‘ 2d), £84,058 9s 3d; sundry deposits, £l6; surplus assets for realisation. £32.055 18s od; cost of floating debenture issue, £4007 10s 2d; stock' and materials on hand £43,002 14s; stocks and materials in transit, £287 9s 2d; total £865,347 13s 9d. Liabilities stanching against . the compauv are: Capital called up £459,207 15s (less unpaid calls. £l9 - 736 os 3d), £439,471 9s 9d; calls paid : n advance, £902 12s (id; debentures. £300,000; mortgages, £4660 19s 56; leasehold'sinking fund, £2313 7s 7d; marine Insurance reserve £6743 14s lid; employees’ mutual benefit fund £287; hankers balances. £55,507 13s od; unclaimed dividends £52 10s 9d ; cash deposits £800; sundry creditors £25,749 14s lOd; accruements, £lO.061 5s 6d; profit and loss appropriation account £18,797 5s Id.; total £865,347 13s 9d. The reports and balance-sheets of the freezing and mercantile departments . are circulated with the general reports. It is shown that the directors propose to pay a dividend on freezing preference shares, absorbing £6OO, and a dividend on the mercantile preference shares absorbing £375 9s Bd. Shareholders of the company are advised of' an extraordinary general meeting, to be held on the same day as the annual meeting, to discuss a proposal for the reduction of capital.