NEWTON KING, LIMITED.

New Zealand Herald, Volume LXVII, Issue 20620, 19 July 1930, Page 9

NEWTON KING, LIMITED.

DIVIDEND OF 61 PER CENT.

SUCCESSFUL YEAR'S TRADING

NET PROFIT OF £20,000 SHOWN

[BY TKLEGRAPH. —OWN CORRESPONDENT.] NEW PLYMOUTH, Friday. The annual report of Newton King, Limited, to l>e presented at the annual general meeting on .July 31, shows that the linn lias had a successful year's trading and that the writing down of capital decided upon last year has had the desired stabilising effect on the firm's finances. Tho report slates that profit and los* .appropriation account, including £451 brought forward from last year, shows a credit balance of £20,994. This figure has been arrived at after an exhaustive overhaul and investigation of the company's assets as at the end of the financial year. The directors recommend tho payment of a dividend of 61/ per cent, for the year on Doth preference and ordinary capital, absorbing £13,294; leaving a balance of £7700 to ho carried forward. • The directors state that the annual licence feo payable by the company is calculated upon the amount of its nominal capital and to effect a reduction thev suggest that 75,500 unissued preference shares bo cancelled and a motion to this effect will be submitted to the annual meeting. Tho balance-sheet figures reflect the drastic writing down of assets in association with tho reduction of the capital of tho company sanctioned by the shareholders J n -' ul . v . 1829 - Tho ca P ital comprises 20Q.195 ordinary shares of 3s each, £30,029 ss, and 174,500 6} per cent, cumulative preference shares, making a total paid up capital of £204,529 ss. Other liabilities are Mortgages on properties, £19,540 (as against £20,340 last year); Bank of New Zealand, £191,721 (£165,453); bills payable, £IB9O (£245); sundry creditors, £38,681 (£50,589): Newton King estate account, £69,830 (£78,762). Assets are shown as follows Freehold and leasehold properties, buildings and yards, £72,499 (as against £113,978); machinery, plant and office furniture, £14,497 (£27,018); stocks of merchandise, motor-cars, machinery on hand and in transit, £7C,046 (£67,293); sundry debtors, £374,180 (£439,918); bills receivable, £15,951 (£11,372). Contingent liabilities under guarantees given by the company amount to £28,475, as against £37,818 last year.

The present company was formed in 1920, and last year resolved to reduce the ordinary shares from 20s to 3s each, the preference shareholders agreeing to forgo three years' accumulated dividends, amounting to £54,027 10s. The ordinary shares have not previously received any dividend. The profit now declared, £20.543, is the largest in the company's history, the previous highest having" been £18.695 in 1925.