ASSOCIATED MOTORISTS.

Manawatu Standard, Volume LIX, Issue 195, 19 July 1939, Page 5

ASSOCIATED MOTORISTS.

PETROL COMPANY’S REPORT. The seventh annual general meeting of shareholders of the Associated Motorists’ Petrol Coy., Ltd., was held at the registered office of the company on June 20, 1939. Mr Charles Todd (chairman of directors) occupied the chair. Before moving the adoption of the directors' report and statement of accounts lor the year ended March 81, 1989. the chairman said :—“it gives me much pleasure lo meet you once again. Over seven years have gone by since our company decided to enter the field of distributing petroleum products. At that time we were warned by finite a nmnher of well-meaning and friendly leaders in finance and commerce that we could not continue in tho petrol business. Our progress since then is the answer. The achievements of this company have rebounded to the benefit of the retail trade and the many motorists in Now Zealand.

“For the year ending 1984 we sold 5.347,095 gallons of petrol. In 1939 our sales were 11,819,882 gallons, showing an increase of 5,472,1-57 gallons. In 1984 the money value of our sales was £464,882. In 1989 this figure had increased to £1,127,009, an advance of £008,887. Total assets now amount to £828,349. Of this, land, plant and other tangibles other than stock cost £227.790, written down by £101.831. The book value is now therefore £125,905, as shown in the balance-sheet. Sundry debtors totalling £103,308 show an increase of £70,719. This is accounted for by adopting the same credit terms as our competitors. Our resellers appreciate this concession. We do not anticipate any loss by granting tills extra credit, for the good reason that our resellers are of undoubted financial standing. The fact of being able to finance this extra credit without straining our finances is testimony to the company’s strong position. Sundry creditors are practically the same as last year. Nett profit for tho year amounts to £51.014, after allowing for taxes (oilier than petrol tax) amounting to £53,091. After allowing for the profits from kerosene and lubricating oil. the profit on petrol is less than one penny per gallon on the total of 11,319,852 gallons sold. The nett profit per gallon for our six years’ trailing is .6815 of a penny. Stated in relation to turnover tho profit is £4 10s per cent, of sales, and for the total period of trading—six years —the percentage of profit averages £3 percent. Working on such close margins it will be realised that a relatively small reduction in the turnover would convert the profit into a loss, so it is the concern of all who recognise the value of this New Zealand owned and New Zealand operated company to give it their practical support. During tho year we were fortunate in purchasing two cargoes on an exceptionally low market, both as to the price of petrol and freight. This is reflected in the profit. Landed costs have since risen, which will reduce the profit per gallon in the coming year. '‘Tn your directors’ report it was proposed that a dividend of 10 per cent., as provided for in our constitution, be paid to preference shareholders (absorbing £4 2.991 10s Od). and_tho balance, after carrying forward £7421 16s 3d in accordance with the articles of association, belongs to flic ordinary shareholders, and is available for pay-i

ment of dividend lo them. Messrs W. A. O’Callaghan and F. W. Johnston, the two directors appointed by preference shareholders due to retire this year, were re-elected. I have much, pleasure in congratulating these two gentlemen on their re-election. Mr K. J. Anderson is the retiring director representing the ordinary shareholders. Our general manager (Mr Bryan Todd) is at present overseas on the company’s business. On behalf of your directors 1 express appreciation of the work of flic management and staff dining the year, and in doing so 1 would like lo make particular reference to our secretary (-Mr L. (I. MacMillan), and sales manager (Mr J. 11. Haigh). who are rendering such excellent, service.. This year the company contributed £754 2s 2d to tho staff provident fund, and the accumulated total of the members’ subscriptions supplemented by contributions from the company now amounts to a sidistantial sum.”

The directors’ report, balance-sheet and accounts, and report of the company’s auditors for the year ended March 31, 1939, were approved and adopted by the meeting, and dividends to holders of preference and ordinary shares as recommended by the directors in .their report were declared. Mill. A. Batt, the only nominee for the office of a director representing the ordinary shareholders, was elected. The meeting passed a vote of thanks to the management and staff, Mr J. R. liaigli (safes manager) responding. Following a vote of thanks to the chair the meeting terminated.