FARMERS’ DISTRIBUTING COMPANY.

Manawatu Standard, Volume LIII, Issue 312, 30 November 1933, Page 12

FARMERS’ DISTRIBUTING COMPANY.

ANNUAL MEETING. | REVIEW OF FINANCES. *

Tlie annual general meeting of shareholders of the New Zealand Farmers’ Co-op. Distributing Coy., Ltd., was held at Masterton, yesterday afternoon, Mr T. Currie, chairman of directors, presiding over a representative attendance of shareholders.

In moving tile adoption of the bal-ance-sheet, the chairman gave a comprehensive review of the conditions affecting the primary producers during the past twelve months. Commenting upon the present satisfactory position Of the company’s finances and trading, the chairman congratulated the shareholders on the improved position and proceeded to review the items in the Statement of accounts.

“The balance-sheet,” said Mr Currie, “shows that the total subscribed capital at September 30 was £157,098, of which £133,694, including amounts paid in advance, was paid up, leaving a balance uncalled of £26,679, of whioh £4114 has been paid in advance. “Our reserves have been kept intact throughout the depression and now total £15,439. Except for £BOO specially set aside in connection with Wanganui wool stores, they have been consolidated into one general reserve account, and it is proposed that we should transfer £360 16s lid from profits to make our general reserve £15,000. Fixed deposits amount to £9369, a decrease of £546, and sundry creditors and shareholders’ accounts stand at £19,478, a decrease of £913. Our bank overdraft has shown the substantial reduction of £17,571, while contingent liabilities in bills discounted increased by £SOOO to £22,500, in all a total decrease in bank accommodation of £12,571. Stocks of merchandise, £18,929, show a further reduction of £llß3, and are at a very satisfactory level considering the turnover now enjoyed by our trading departments. All stocks are in good order, and have been conservatively valued. Plant, motor cars and furniture at £6839, show a reduction of £3lO, several replacements having been made and ample provision allowed for depreciation. Advances and sundry debtors stand at £106,287, a reduction of £14,569, but with the increase in bills discounted a nett decrease of £9569. Bills receivable which have not been discounted amount to £583, an increase of £195. “Turning to the profit and loss account, it is pleasing to notice that expenses have been kept well in hand, the total expenses (excluding bad debts) being only £346 ahead of last year, although we have handled a much larger volume of business, and also materially extended our operations, both at Feilding and Palmerston North. The expenditure has been materially reduced in recent years, and it is now considered that the company is in a position to reap full benefit from any improvement in the conditions affecting the primary industries. Commission department: Gross earnings total £25,737, a very pleasing increase of £5529, which is largely accounted for through our entry into the Feilding saleyards, and a much greater quantity of wool being handled. Trading departments show a gross profit of £21,464, being a reduction of £2691 compared with last year, despite the fact that turnover is up. Trading conditions have, however, been most difficult, and much of the turnover has been on very small margins, and we look to the future with confidence. The total turnover for all -departments showed a very pleasing increase of over 26 per cent, from £478,071 to £614,612, all departments having handled increased business. THE YEAR’S PROFIT.

“The nett result as disclosed by tlie annual report and statement of accounts was a profit of £5015, compared with a loss of £3289 last year. After deducting the debit of £I6OB carried forward in tlie profit and loss appropriation account there is available £3407, out of which it is proposed to transfer £360 16s Id to the reserve account, to write £1230 off properties for depreciation, and, after providing sufficient to meet income tax, carry the balance forward.

“We have now made ample provision for possible losses in advances and unpaid interest, and the recent rises recorded in prices for wool and meat will further materially improve the position. The fact that we have reduced our commitments to the bank, depositors, and sundry creditors by £14,029, oir stock and plant by £1483, and our sundry debtors by £14,569 is an indication that the position is liquid even under such conditions, because in doing so we have not curtailed the business in any way, but have considerably extended our operations both at Feilding and Palmerston North. The policy of depreciating our property values has been retained right through the depression, all plant has been written down to safe figures, and all buildings and premises kept in good order and repair. “Our thanks are due to the many shareholders and farmer customers who have so loyally supported the company throughout these trying times, resulting in it coming so much to the fore, and I have no hesitation in stating that if this support is continued the company will rapidly progress and be of great service and value to the whole farming community. Finally. I desire to take this opportunity on behalf of tlie board to thank the executive officers and the staff for their loyal services during the year.” The motion for the adoption of the report was seconded by Mr McFarlane Laing, of Masterton. Mr Duncan McGregor referred to the large increase in the turnover and congratulated the directors on the sound position of tlie company.

Replying to an enquiry concerning the decrease in advance accounts, Mr W. O. Fowler (general manager) stated that throughout tlie depression the company had 'not called up one single arranged account. Tlie report and balance-sheet were unanimously adopted. The retiring directors, Messrs T. Currie (Wanganui), D. Scott (Taihape) and G. E. Yule (Featherston), being the only nominations, were ‘duly re-elected. Mr S. E. Lambert, F.P.A.N.Z., was re-elected auditor and Mr F. C. Wilson (Marton) was re-ap-pointed shareholders’ scrutineer. Mr A. Ross, in moving a vole of thanks to the board of directors, stated that the shareholders had every confidence in the chairman and his codirectors. They looked forward to improved times which would lighten the worries of the board. The motion was seconded by Mr Neil McKay (Gladstone) and carried by acclamation. Mr Currie returned thanks on behalf of the board. A vote of thanks and appreciation to the general manager (Mr Fowler) and his staff throughout the various branches of the companv was moved by Mr MacFarlane Laing, “who referred to the loyal service rendered by each officer. In replying, Mr Fowler asked for increased support from all shareholders, as this would encourage the staff in their efforts.

Mr A. Stuart, M.P., referred to the improved position of the company and expressed the hope that in the future some return would be available to the shareholders on their investment.

At a subsequent meeting of directors, Mr Currie qvas unanimously re-elected chairman.