Page 18 Advertisements Column 3

New Zealand Herald, Volume LXVI, Issue 20239, 26 April 1929, Page 18

(Incorporated under "The Companies Act, 1908"), acquiring l , as a going concern and free or all liabilities, the business of Geo. Kent & Sons Limited, which was originally established In 1872. Nominal Capital, MS? w.'r?^,° e 'S s S •iii'd also 35 000 Participating Preference Shares of £1 each, wuicb aro entitled t a flxod r7eferenl a (rHK not cumulative) dividend at the rate of 10% i! and mrtlclntc pari passu with Ihe Ordinary Shares in further Sfvidonds art"? lifelatter shall have received a dividend of 10%. They are also enUtied to prloritFin regard to assets in the event of liquidation. The Company is also Issuing £35,000 of 7First Mortgage Debenture Stock, and now Offers for Subscription the said 35,000 10% Preference Shares and the said £35,000 of Debenture Stock upon the following terms: — (b) 209^ e on '"ppVlcatlon 0 ," 2*0% on allotment, and the balance of 60% (b) ,n 3 cans of 20% each at Intervals or not less than 2 months. The annual net profit for each of the past three years has been more than twice the amount of the debenture interest. After allowing: for debenture Interest or £2625, Mc net profi year ending March 31st, 1020, has exceeded the amount of a 10 /o dividend 'on the whole issued capital of £45,000. ro „ ntrit nnd the respective dates of payment. , . Application will be made in due course for quotation upon tLe Auckland Stock Exchange. Managing Director: p FINLAY. UC Yorkshtre House, arch. KENT, of Auckland, Master ' shortland Street, Auckland. Baker. Secretary: Dtrecto.s. BLAMPIED, Geo. Kent & Sons, The following are the Directors or Limited, Newmarket, Auckland, ihe Company, their oillces being held Auditorsuntil the first Annual Meeting:— mfsSRS. KENDON, MILLS & STEWALBERT JOHN CLEGG, or Welling- ' public . Accountants and ton. Managing-Director or Dcßhanl Auditors. Chancery Chambers, Bakeries Limited (Advisory Dlrec- o'Connell Street, Auckland, tor). Brokers: HENRY KENT, or Auckland, Master Q sxf ;\vAßT CRAIG, LIMITED, 41, Raker. 'shortland Struct, Auckland (Box ARTHUR CHARLES OAVIB, Of Weil- 187). ington, Company Director. Trustee Tor the Debenture Holders: NORMAN ALEXANDER DUTHIE, or THE OUAHDIAN TRUST AND EXECUAuckiand, Public Accountant. TORS COMPANY OF NEW ZEALAND, LIMITED, who will hold all Bankers: debenture moneys pending the THE NATIONAL BANK OF NEW handing over of a reglsterable ZEALAND, LIMITED. mortgage by the Company. The Object of the Company The Company lias been formed to acquire, as a going concern and free of all liabilities, and to continue, the business of Geo. Kent & Sons-. Limited, which has increased Its net proilt and its output annually ror many years. The following figures show the output or loaves for an overage week in each or the months mentioned, and It will be seen that the turnover has more than doubled in the period or S years:— Date. Feb., 1927 .. June, 1927 .. Feb., 192S .. June, 1928 .. Feb.. 1920 .. April 13, 1929 22,167 II Date. Loaves. Date. Loaves. Date. _ Loaves. Feb 1021 .. 23,701 Feb., 1024 ... 31,370 Feb., 1927 .. 44,100 June, 1921 .. 25,060 June, 1924 .. 34,200 June, 1927 .. <5,600 Feb., 1922 .. 26,140 Feb.. 1925 .. 34,069 teb., 1928 .. 47,730 June, 1922.. 29,210 .Tunc, 1925 .. 33,440 June, ™2S.. 48,410 Feb., 1923 .. 29,600 Feb., 1926 .. 38,600 Feb.. 1920.. 50,09* June, 1923 .. 29,800 June, 1926 .. 41,750 April 13, 1929 50,150 At present it is extending its premises nnd providing additional plant for special classes or goods, In particular tor the production or Vienna bread. Profits and Dividends The following certificate has been given regarding the profits for tba past 3 years:— To the Directors. KENT'S BAKERIES LIMITED, Auckland. £ g. d. The Gross Income earned by Geo. Kent k Sons Limited, Bakers, Newmarket, during the , e -i vear ended 31st March. 1029, was .. 22,16< 14 4 And 'arter making the following deductions: — (a) Depreciation at rate allowed by Com- £ s. d. rnissloner or Taxes on Machinery, Plant and Motor Vehicles .. .. 953 16 0 ~ (b> Manager's Salary at £IOOO per annum 1,000 0 0 (r) Bad Debts .. .. •• 205 e 10 (d> Rental, Rates and Insurance .. >t>oo 10 5 (e) Wages. Salaries and Motor Maintenance nnd Expenses .. .. .. 0.313 10 i (O General Maintenance •• •• 03b 18 i (g) Printing. Stationery, Lighting and General Expenses .. .. .. '62 > 6 (h) Advertising .. .. •• 207 13 11 13T30 12 1 Showing a Net Profit for the year of .. 8,437 2 3 Allowing for payment or debenture interest at 71% on £35,000 .. .. •• 5.625 0 0 the Net Taxable Income Is .. .. 5.512 2 3 Deduct income tax at current rate on above . amount .. .. . • •• 1,126 5 6. Leaves a net amount available for distribution * among shareholders or .. .. £4,685 16 9 953 16 0 1,000 0 0 205 6 10 f 650 10 5 0.313 19 1 036 18 i 13.730 .12 8,437 2 the Net Taxable Income is .. .. j,SI2 2 3 Deduct income tax at current rate on above . amount .. .. . • •• 1,126 5 6 Leaves a net amount available for distribution f. among shareholders or .. .. £4,685 16 9 Calculated on an exactly similar basis the Net Profits available for distribution in preceding years would have been:— Total Net Profit. Arter Deduction Debenture Available for or Income Tax. interest. Distribution. £ s. d. , £ . £ s. d. Available for Distribution. £ s. d. For the year ended March 31 st, 1927 .. For the year ended March 31st, 1928 .. 6,003 3 8 3,378 3 8 4,383 14 0 31 St. 1928 .. .. 7,008 14 O 2,625 4,383 14 O We hereby certify that we have compared the foregoing statement with the books and documents of Geo. Kent & Sons Limited, Bakers, Newmarket, and in our opinion It correctly sets forth the amounts which would have been available for distribution among the shareholders or your Company arter allowing Tor pavment or Income Tax at current rates on the Profits shown. (Signed) KENDON. MILLS & STEWART, Per Chas. K. Mills, F.P.A. (N.Z.) It will be seen that the above net profit has annually increased by a substantial amount, and in the last year exceeded by £llßs/16/9 the amount of a 10% dividend on the 35,000 Preference Shares after allowing for debenture interest and taxation. It is anticipated that the past net profits will be largely exceeded in the future, both by the natural increase or the business and through the augmented output and new trade due to the present installation or further modern plant. It should not be forgotten that, since bread Is one or the prime necessities or everyday lire, the bakery business is one or the most essential, and therefore safo, or all trades. The Purpose of the Present Issue of Shares, and Debenture Stock The whole or the proceeds or the present issue of shares and or 7J% first mortgage debenture stock will be expended upon the purchase or the present business and or the new plant and premises. The formation or the nresent Company will bring the capital employed in the business up to its true level as the annual gross Income or Geo. Kent & Sons Ltd. now exceeds its capital, and its tangible assets arc nearly 3 times its capital. The Assets of the Company The assets or the Company are as follow, and separate valuation certificates regarding the principal items appear at the end or this Prospectus:— riant. Machinery and Equipment (valued by S. W. Moscrip. N.Z. Representative of Raker-Perkins, Ltd., Bakery Engineers, or London and Peterborough, .. .. .. .. £21,500 Brick Premises (valued by Messrs. Chilwoll & Trevithick) .. .. .. .. 15.552 Freehold Land (valued by W. Wallace) .. .. 13.112 New Plant and Premises at cost .. .. .. 4,950 Sundry Assets .. .. .. .. >•: 'OO Total of Tangible Assets .. .. .. £55,814 Goodwill, on the basis or twice the average net annual profit over a period or 3 years .. .. 15,410 This total shows a very ample margin of security for the present issue or £35,000 or First Mortgage Debenture Stock, since the assets, exclusive or goodwill, arc*t>o% more than the amount or the Issue. Management The present Company is continuing under the management or Mr. Arch. Kent as Managing-Director for a period of 2 years, with right or renewal tor a rurther 3 years, and this alone is an assurance or its rurther prosperity. Terms of Debenture Issue SECURITY: Registered First Mortgage Debenture and Collateral Trust Deed over all the assets or the Company in favour of The Guardian Trust ana Executors Company or New Zealand, Limited, as Trustee for the Debenturo Holders. PERIOD: 15 years rrom the Ist day or May, 1929. INTEREST will he paid haH-yearly on Hie last day or each or the months or April and October in each year at the rate of seven pounds ten shilling* per centum per annum. TAXATION: Under existing legislation the Interest will be payable without any deduction, and is added by each holder or the stock to his incometax return, as ho would the Interest on an ordinary mortgage. SCRIP will bo in the form or registered certificates in the name or the holder, and will bo issued in any multiple or £.">o, with a minimum or £SO. Director's Qualiiication There are to be five Directors, who must all be members or the Company, and no person will be eligible for election as a Director unless he is a member or the Company, holding not less than one thousand shares in his own name. Such shares may be cither preference or ordinary shares or may be some of each class. Applications will be allotted forthwith in the order of their receipt. Copies of the Prospectus may be obtained from any licensed sharebroker, or from the Company's Brokers, G. STEWART CRAIG, LTD. 41, Shortland Street, Auckland. P.O. Box 487. Telephone 41-645. To the Directors, KENT'S BAKERIES, LTD., C/o. G. Stewart Craig, Ltd., 41, Shortland Street, Auckland. P.O. Box 487. Please forward me, without obligation, a copy of the Company s Prospectus. .*•< Address.