SUCCESSFUL YEAR

Hawera Star, Volume XLVII, 2 June 1928, Page 5

SUCCESSFUL YEAR

FARMERS’ CO=OP. SOCIETY.

DIVIDEND RECOMMENDED, REPORT TO SHAREHOLDERS. A recommendation that a dividend, of three per cent be paid is made in the fourteenth annual report and bal-ance-sheet of the Farmers’ Co-op. Organisation Society, which will be formally presented at the annual meeting to be Held in the Foresters’ Hall, Hawera, on Thursday, June 14. Tne directors’ report states (inter alia) that the total profits for the year amounted to £21,392 9s Bd, and after writing down properties: and plant to the extent of £5389 4s, the net profit amounts to £16,003 5s Bd, out of which the sum of £l9lO 12s 3d has been placed to a reserve for bad and doubtful debts, and £2700 reserved for in-come-tax, leaving a, balance of £11,392 13s 5d to be dealt with. “It is the recommendation of your directors that a three per cent dividend be paid, which will absorb £6252 14s 7d, and the balance £5139 18s lOd be trailsterred to the profit and loss appropriation account,” continues the. report. “This sum, together with transfer of amount paid on forfeited shares and surplus from the superannuation fund, will reduce the balance- on this account, which last year stood at £32,572 8s Bd, to £13,280 7s- 3d. With, the loyal support of the shareholders and ■sound judgment, it is hoped that next year this item will be ,practically eliminated from the balance-sheet. “Buildings.—Owing to increase in our wool business, it was found necessary to enlarge the size of our -wool warehouse in Wanganui, and 9000 square feet was added, and- also a railway siding for direct delivery of consignments. Certain other necessary alterations have also been made to- a' number of our warehouses for more convenient handling and displaying our produce. “Guarantees.—We have pleasure in advising you that the guarantees given by your present and some of your past directors to cover advances up to £IOO,OOO have now been released, your bankers having sufficient confidence to grant us any accommodation * we require without this security. “Directors.”—The retiring directors are Messrs. Alexander Hunter, William George Belton, Henry Albert Foreman, Brian Cuthbert Lysoght, and John Edward who have been-nomin-ated for re-election. As no further

nominations nave been received,, the above nominees are duly elected-, and a. poll is therefore unnecessary. "lie would like to express our appreciation to the many shareholders who have so loyally stood by the institution, and we feel sure that the Jesuits obtained will be pleasing to them. In conclusion, we trust that as many as pososible of our shareholedrs will make special efforts to be present •if the annual meeting,” liie report of the auditors (Messrs Walkley and Cameron) shows the improvement in the society’s position as indicated by the reduction of the bank overdraft from £78,320 in 1924 to ,£2390 in 1928, the reduction in the four years amounting to- £75,430. For the year ended March 31, 1925, the overdraft was reduced by £5985 to £72,335; in the year ended .March 31, 1926 by £16,908 to' £55,427; in the year ended March 31, 1927, by £22,165 to £33,262 and in the year ended March 31, 1925, it was reduced by £30,372 to £2890. “The society’s liability on fixed deposits has iincreased during the year by £'4406,” continues the auditors’, statement. The amount of deposits for the 'successive years are given as follow : 1924, £66,277:; 1925, £54,733; 1926, £48,730; 1927, £32,285; 1928, £36,691.; . ; Dealing with liabilities - under mortgages, sundry creditors, and. vendor clients’ accounts, tile reports, says: “Last year the gross liability here was £53,638. Tnis year the aggregate is £56,341, and the increase of £2703 aver last year's total is a natural-con-, sequence of the increased turnover in the year ended March 31, 1928. “During the year the liability xo banks has. been reduced by £30,372; the liability to depositors increased by £'4,406 ; and the increase in other liabilities amounted to £2703. The total ieduction during the year was thus £23,263. Shareholders will recall that in the year ended March 31, 1927, the society’s liabilities under alt headings diminished by £41,655, so that in the mst two years the society’s position has been consolidated by the repayment of debts amounting - to the substantial total of £64,918, notwithstanding the fact that during the same period it has erected a commodious wool store at Wanganui. ... .

“Assets.—On turning to' the assets ide of the. balance-sheet and comparing :he same with last year’s only'minor luct,rations will be observed, excepting under the head sundry debitors. Debts due to the society have increased! from a net figure of £166,957 at 'March Jl, 1927. to £186,479 this year. The increase is the natural result of the ..hitant'ai increase in business handled during the year. The £4600 set. aside for doubtful accounts last year- has oeen absorbed, together with a further mm of £1352 16s writen off as irreoovlabie. Au additional suin' of £l9lO 12s 3d has been set aside as a -provision for the current year. • The society’s credit department- bears evidence of careful and efficient control. . . .. . ..

‘’P rofit and Loss Account. .VC reported to you that 'the society ap~ jeared) to be satisfactorily emerging from th© difficulties nafsultimg from . ! jf post-war depression iu business and markets, and last year we expressed the view 'that the corner had been turned. The results of the year’s i a-ding will doubtless be gratifying to shareholders. . After writing off £53&9 4s for depreciation on. plant and .p:rpmuses, and provikling £l9lO 12s 3d for iouhtTii,'. accounts, and £27oofor income '.ax. the net surplus on the, year’s lmsin o-i-i is £11,392 13s sd. “Profit and Loss Appropriation Acs . cunt. — Last year the accumulated loss, vs amounted to £32,572 As Bd. Datrng the vear under iwiew this fissure .has been, reduced to £18,420 6s Id by transferring the’ surplus due.to the society, on the winding-up of the ,superannuation fund £3125. and by. appro-H-iating £11,027 2s 7d from forfeited shares r-aserve account. We strongly recommend the society to make one of its objectives the wiping oun altogether of the remaining balance of £18,420 6s Id, and thereafter the building up of a substantial reserve. “Paid-Up Capital.—Last year the balance-sheet figure was £191,370 10s 2d. This year it has grown to £208,424 os sd, an increase of £17,053 15s 3d during the year. The policy that has been followed of getting, in the capital and utilising it in the society’s business has borne good fruit by very substantially reducing interest charges, allowing the society’s greater freedom of movement arid facilitating expansion of business.” ■' - w