SHOW FINANCES

Manawatu Standard, Volume LIX, Issue 98, 25 March 1939, Page 9

SHOW FINANCES

YEAR UNDER REVIEW. DECREASE IN PROFITS. MAN A WAT U ASSOCIATION. An increase both of assets and liabilities is disclosed in the annual report of the treasurer of the Manawatu and West Coast A. and P. Association (Mr M. A. Eliott). Liabilities show an increase of £5411 9s 9d, brought about mainly by an expenditure of HUi7 1* 6u for re-roofing the grandstand. "Had it not l>een for this item, the steady improvement shown during the previous three years would have Ixen maintained,” si ales Mr Eliott. ‘‘After writing off £4Ol as depreciation, assets show an increase of £5512 2s, which is principally attributable to the increased value of the grandstand and the value of the loudspeaker system. These comparisons are made of the position. “The financing and re-roofing have given me and the committee much thought and anxiety. On the one hand we were faced with a rapidly deteriorating building in the shape ol tho stand, without a roof since tho hurricane in 1936. This, if left for a few years longer, would have meant either no stand at all or total reconstruction at a heavy cost. On the other lmml, the estimated cost of the roof was £'4500 (actual cost £'4977) against which all we had was a credit in the building fund of £l3Ol 12s 3d and a credit of £'S79 18s 2d in the debt reduction fund. Tt was decided to arrange the required finance through tho Bank of New 7 Zealand. This has meant giving a second mortgage to the Bank of New Zealand officers guarantee and provident fund for £2OOO at 4.f per rent and increasing, the overdraft, to £3768 12s Bd. Owing to the seating to a large extent being rotten, it was found necessary to spend a further sum on re-seating the stand. Tin's amounted to £l3O (approx.) after allowing for tho value of eurrugated iron taken from under tho old seats. The total expenditure on the stand and seating was £4977. I feel that the thanks and appreciation of the Association are due to the Bank of New Zealand for the manner in which our request for increased accommodation was granted, especially as this was made at a time when the trading banks generally were conserving their funds for urgent reasons. The Bank expects the association to reduce tho overdraft as soon as possible. f trust that there will not he any slackening off of special functions to raise funds for debt reduction,” ATr Eliott states. “The debit balance of the hank account on February 28 was £37(58 12s Bd, which included outstanding, cheques and accrued interest. The increase for the voar was £2545. SHOW REVENUE. “Winter Show revenue amounted to £3195, as compared with £2906 in 1947 and expenses were £2271 against £L979 in 1947. Gate takings were £1833, an increase of £332, the net profit being £9lB as compared with £927 the previous year. Spring Show: A comparison with the previous Show would not he useful as the 1937 fixture was a Royal Show. This year the revenue was £3572 and the expenditure £2887 showing a profit of £685 as compared with a profit of £345 in 1936. “Profit and Loss Account.—After writing off the fixed depreciation £461 and spending £713 on repairs and maintenance the net profit is £343 12s 8d as comparbed with £271 11s 2d last year (i.e. £371 11s 2d. less a payment of £IOO to the Royal Agricultural Society in respect of the 1937 Royal Show). The principal items causing a shrinkage in profits wore: Less revenue from grounds and buildings, £l7l. Note: (The cost of the sound shell, £IOO, was charged to this account for special reasons). Less profit on farm working account, £100; less members’ subscriptions, £62; increase in expenditure as follows: rates, £37: interest, £39; insurance, £32; printing, stationery, stamps, etc., 67; general expenses, 74: salaries, 117; sundries, 90; total, £789. On the other hand this wag offset by improvements as

follow: Reduction in maintenance and repairs, £230; increase in profits from the two Shows, £322; £237 represents the reduction in profit, excluding loudspeaker revenue, as compared with the previous year. “Building fund. —On February 28. 1935, this was in credit £ll9O 17s St! in a special account at the bank. This year the fund is in credit £l3Ol 12s 3d. The increase is made up of ball profit £IOO 9s 6d, and donations £lO ss. Tile debt reduction fund : The credit balance at March 1, IP3S. was £026 13s 3d. This has increased during the year to £879 iSs 2d, the increase being due to: Life membership subscriptions. £39 ISs; instalment of the John Balsillie legacy, £B3 0s Sd ; profits from the circus at the Winter Show. £IOO 14s 3d; special donations, £29 6s; total, £253 4s lid. “It will be seen that the decrease in profits is due to a number of reasons, none of them separately being large, but the cumulative effect of all the items brings tho total up to the serious and alarming amount of £789. Had it not been for the increased profits from the two Shows, and the lesser amount spent on maintenance, tile net result would have caused concern. The result shows the necessity of a strict watch being kept, over expenses. Tf this is done and the members of the association and tho public will give the association the support it deserves, then the future prospects should be brighter now that, we have made substantial progress in repairing the damage caused bv the hurricane in 1936. “Owing chiefly to the efforts of Mr W. A. Sutherland and the Manawatu branch of the Amateur Radio Transmitters’ Club, the association has purchased and installed an efficient loudspeaker system at a cost of £7lO. The greater part of the finance required for this was raised bv means of free of interest loans subscribed to by members of the association. A portion of these loans will l>e repaid each year out of profits credited to the loudspeaker account. Four loans of £l2 10s have been balloted and repaid. Owing to failure on the part- of tho speedways company to carry out tlieir contract with the association, it was considered advisable to terminate the agreement. This now gives the association a free hand to deal with the oval as desired.”