GISBORNE MEAT TRADE.

New Zealand Herald, Volume LXV, Issue 20116, 29 November 1928, Page 14

GISBORNE MEAT TRADE.

COMPANY'S ACTIVITIES.

OVERDRAFT LARGELY REDUCED.

CHAIRMAN'S HOPEFUL REVIEW

"I can toll you this, that f ho performance is one of which any company, situated as this company was, can ho justly proud," Mr. J. W. Nolan, chairman of directors of the Gishorno Sheepfarmers' Frozen Meat and Mercantile Co., Ltd., slated at the annual meeting held at fSishorrie last Saturday, in the course of a review of the company's recent activities, and the recovery that had been effected during recent years. fie pointed out that the overdraft had lieen reduced by over £240,000 while the works at Kaiti had been practically rebuilt, during n period of years when the company had been carrying a heavy deadweight in the form of the Hicks Day investment. "In moving the adoption of the report and balance-sheet it is pleasing indeed to he in a position to congratulate shareholders on the result of the year's operations," Mr. Nolan said. "When last 1 addressed von I pointed out that the outlook for tho coming season was good and that your directors anticipated an improved output. That such anticipation was correct is evidenced by tho balance-sheet now before you, which I venture to suggest justified the stabilising and conservative policy adopted hy your directors.

" It is needless for ino to reiterate in full what tlio company has accomplished during tlio past few years, which, with perhaps the exception of last season, were all slump years. But I can tell yon this: That the performance is one of which any company, situated as this company was, can he justly proud. You have reduced your hank overdraft, from £297,000 to £55.000, practically built new works at Kaiti, written off heavy depreciation and innumerable had debt's, paid off other sums, and during the whole of that time have stood up to a steady annual loss of roughly £20,000 a year at Hicks Hay alone. After to dav, however, on the carrying of the proposed resolutions for the reduction of capital, your directors hope tr be in the position of being able to talk of these losses as ancient history. Title, during this period of stabilisation, shareholders have not been receiving any return on their capital invested, but they must remember that it is very difficult indeed, if not impossible, to retain an apple if you eat it. " Your company commenced last financial year with a bank overdraft of £114,883. This, at the end of the year, stood at £55.507, a reduction of £59.376. During the year £10.937 was expended in repairs and renewals and £1332 written off cost of floating debentures. Open accounts show a slight increase and secured accounts a decrease. Though there has been a considerable increase in turnover during the year in all departments, our expenses were decreased by £3686. this beinp attributable largely to the completion of tlio building programme at the Kaiti works On the advent of electricity, which we hope'to have in the next year, your directors are looking forward to a sfill further leduction in the cost of working."