KAIAPOI WOOLLEN CO.

New Zealand Herald, Volume LXVIII, Issue 20991, 30 September 1931, Page 5

KAIAPOI WOOLLEN CO.

YEAR'S WORKING REVIEWED. EARTHQUAKE LOSS OF £16,2! 6. A report of the year's working and the annua] meeting of the Kaiapoi Woollen Manufacturing Company has been issued by the board. The chairman referred to the depression and tho extremely low price of wool, keen competition from overseas, and restricted purchasing power in New Zealand. The company had not had sufficient time to derive any benefit from the recent wages cut, and discounts to conform to lower wages costs were written off all their existing manufactured stocks, amounting to £15,000. On top of all the other difficulties came the Hawke's Bay earthquake, which dealt a staggering blow in a district where our affairs had shown much development in recent years." The loss through the earthquake was £16,216, or £3BOO less than was at first estimated. Additions made to plant during the year were £8695. Over tile last four vears additions totalling £30,000 have been made, and during the same period £20.000 ha-, been provided for writing down plant and properties—excluding the Hawke's Bay stock loss written out this year, manufactured stocks are lower this year by £4OOO. "Had our clients been in a position to take in all their winter indents, some £30,000 worth, and had the extremely acute trading petition not dei veloped in the latter part of our financial I year, considerable further reduction would have been evidenced," states the report. "In bulk the company is holding larger greasy wool stocks than last year, and if prices are firm we should be largely in- | dependent of the market. This factor | is very helpful in our forward booking." To "meet altered conditions stocks had j been reduced and wages and salaries rei viewed and many substantial economies I had been effected. In order to meet, the ' deficiency in the profit and loss account, i a transfer from general reserve of .£20,000, i and from the income tax reserve of ' £10,500, had been made; al.-o, a transfer | from the bad debts reserve of £2700. i These, with the carry forward from last j year of £1339, will furnish £34.539, which I will cover the position, provide a prefer- | enee dividend, and permit a carry forward j of £356. ' The report and balance-sheet, which disI closed a loss of £30.272, and which was j published in the Herald on September 3. j were adopted, but not without some criti- ; cism by shareholders.