N.Z. FARMERS’ DISTRIBUTING CO. LTD.

Manawatu Standard, Volume LIV, Issue 307, 24 November 1934, Page 5

N.Z. FARMERS’ DISTRIBUTING CO. LTD.

ANNUAL MEETING. } TURNOVER INCREASED. ) The annual general meeting of shareI holders of the N.Z. Farmers’ Co-op. I Distributing Coy., Ltd., was held at I Feilding yesterday afternoon, Mr T. I Currie, chairman of directors, presiding over a representative gathering of members from the: Wairarapa, Mana--1 watu, Rangitikei and Wanganui districts. 1 In moving the adoption of the bal-ance-sheet, the chairman gave a very comprehensive review of market condi- . tions relating to the Dominion's primary products (extracts are published elsewhere in this issue) and also touched upon the main economic factors i which have affected values. He referred. to the excellent trading year experienced by the company, the. nett returns being the highest in its history, while the wonderful increase in the total turnover indicated the steady progress being made by the company in all its centres throughout the Wellington province. ‘‘The balance-sheet of the company,” said Mr Currie, “shows that the total subscribed capital at September 30, 1934, was £156,157, of which £133,427, including amounts paid in advance of calls, was paid up, leaving a balance uncalled of £26,459, of which £4194 has been paid in advance. Our reserves, which have not only been kept intact but increased throughout the depression, now total £16,411, and after the proposed transfer from profits of £3OOO to the general reserve account 'and the usual addition of £IOO to the property depreciation suspense account our reserves will total £19,000, that is, after utilising the amount of £sll in the forfeited shares reserve to further depreciate the of our saleyards properties. “Fixed deposits amount to £8125, a decrease of £1244, while sundry creditors and shareholders’ accounts stand at £31,862, as against £19,478, an increase of £12,384, mainly caused by the greatly improved turnover in the stock department. Our bank overdraft has shown a further substantial reduction of £12,370 to £lO,784, while contingent liabilities in bills discounted also show a decrease of £7500, in all a total • decrease in bank accommodation of £19,870 for this year, the decrease over the past two years being £82,441. “On tlie assets side of the balancesheet, properties at £75,346 show an increase of £5537, which is explained by alterations and additions to. our Masterton and Wellington premises, and reductions in table mortgages, less £ll3O writen off for depreciation. Stocks of merchandise, etc. (£22,219) show an increase of , £3290, larger stocks being necessary' for our increas- ' ed business. All stocks are fresh and , in good order and have been conserva- ; tively valued. Plant, motor cars and , furitnure (£7388) show an in- ’ crease of £549. several replacements : having been necessary, while ample j provision has been made for depreciation. Advances and sundry debtors (£111,901) show an increase of £5614, ’ due chiefly to the larger turnover now enjoyed, though the company has been fortunate in securing several new profitable accounts, thus avoiding the difficulty facing -many companies to-day of .having capital lying idle. Bills receivable which have not, been discounted amount to £1613, an increase of £IO3O.

“Turning to the profit and loss account, it is pleasing to report the substantial and record profit of £17,459, compared with £5015 last year and beating the previous record of 1929. •when £15,527 was shown. The total expenses (excluding bad debts) amount to £43,140, an increase of £4073 on last year’s figures, but when it is remembered that our revenue is £16,536 higher and that the expenses when compared with those of the previous record year, 1929. are £4055 lower, despite the considerable extension in our operations, it will be evident that this position has been carefully controlled.

“In the commission departments gross earnings total £37,271, a very pleasing increase of £11,534, which is a reflection of the improved prices for live stock and wool and our much improved connection both in the live stock and wool departments. Trading departments show a gross profit of £26,466, an improvement of £5002, solely owing to the much better support we are now receiving from shareholders and farmer customers. • “The total turnover (excluding land sales) for all departments again showed a substantial improvement, and it is very pleasing to record figures of over a million pounds, the total bping £1,071,319 compared with £604,612 last year, an increase of over 77 per cent. While this total does not quite equal the figures shown for 1928 and 1929. the actual volume of business handled is easily a record for the company, all departments having shown considerable improvement. AVe feel confident that with the continued goodwill and support of the farming community, we will in a comparatively short period be able to double these figures. The nett result, ns before stated, is a profit of £17,459 which with the balance of £1765 brought forward from last year gives us a balance in profit and loss appropriation account of £19,224, which it is proposed to allocate as follows: —To pay to shareholders a dividend at 5 per cent, per annum; write off £1230 for depreciation of properties; add £3OOO to general reserve, and, after providing sufficient to meet income tax, to carry the balance, estimated at £3400, forward. “AVhen it is remembered that we have reduced our commitments to the bank by £19,870, considerably extended and consolidated our business, made ample provision for all bad and doubtful accounts, maintained the policy of depreciating our property values and kept all buildings and premises in good order and repair, I think we can review the returns with great satisfaction, and it can be definitely stated that the company was never in a bet-, ter position. The improvement over the past two years has been remarkable, especially as we have in recent years experienced the most severe depression this country has ever known, and the fact that the company has not only materially increased its reserves and improved the liquid position but has

continued to expand its business, firmly established ourselves in Feilding saleyards, reorganised our wool business at Wellington and considerably enlarged our stores at that point, at the same time retaining and improving our business in all departments, is, I think, a record of which we might feel justly proud. “Thanks are due to our 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 show further rapid progress and be of great service and value to the whole farming community. Finally, I desire to take this opportunity, on behalf of the board, to thank the executive officers and all members of the staff for their loyal services during the year, without which the results now reviewed would not have been possible.” The motion was seconded by Mr W. Cacciia Birch (Palmerston North) and carried unanimously. Being the only nominations, Sir William Perry, Messrs H. B. Maunsell and D. Collis were declared duly re-elected to the directorate.

Mr A. Campbell (Taonui) referred to the excellent work performed by the directors on behalf of the shareholders, and moved that they be granted increased remuneration.

Mr H. S. Cornfoot (Halcomb©) seconded the motion, emphasising that the present low remuneration was altogether inadequate. The motion was carried.

Mr S. E. Lambert (F.P.A.N.Z.) of Wellington, was re-elected auditor, also Mr F. C. Wilson, of Marton, as shareholders’ scrutineer.

Mr Campbell made reference to the loyal services rendered by the staff at all branches, stating that the company possessed a particularly efficient and obliging set of officers. Mr E. Nix (Apiti) supported the previous speaker and a motion of appreciation was recorded.

Mr "W. Coulson Fowler (general manager) thanked the shareholders for their expression of satisfaction with the services rendered by the staff and made reference to the continued loyalty of the farming community to their own company.

Mr A. Stuart, M.P. (Marton) stated he was pleased to notice the progress recorded by the company and hoped that as soon as its position was further improved it would be enabled to render even more services at reduced costs to its shareholders and clients.

Mr G. L. Marshall (Marton) urged shareholders to retain their holdings, as they were often tempted by speculators and vested interests to relinquish their shares and thus allow the control of the company to pass out of the hands of the farming community. It was necessary, he said, in the best interests of a farmers’ co-operative association that the shareholding be widely distributed amongst farmers themselves.