FARMERS' TRADING CO.

New Zealand Herald, Volume LXX, Issue 21503, 29 May 1933, Page 5

FARMERS' TRADING CO.

FURTHER FALL IN PROFITS YEAR OF GREAT DIFFICULTY NO ORDINARY DIVIDEND A net profit of £14,200 is shown in the annual report and balance-sheet of the Farmers' Trading Company, Limited, for the year ended March 31. Ibis compares with £25,149 in tho previous year, a reduction of £10,949. For the second year in succession the directors do not recommend a dividend on ordinary shares. Previously 8 per cent was paid on ordinary capital. The report of the directors stated conditions in tho business world had not improved during the year. They had, in fact, grown steadily worse with the fall in dairy produce values. It had been a period of extreme difficulty. Few business concerns had made profits, and, on the contrary, it had generally been considered fairly satisfactory to keep going without a loss. "It. is thus all the more satisfactory," continues the report, "to find the company has again made a profit, although a small one, and not sufficient for a dividend on ordinary shares. This has been made possible by the solid support of the shareholders and other clients who have kept the turnover nt a level that is really surprising considering the circumstances; also by the unabated zeal and loyalty of tho management and staff." Features of Balance-sheet The Queen Street branch, which was opened during the year, had come through its initial stages and was now on a profitable basis, with turnover showing steady progress. Fixed depositors had agreed to leave their money on deposit with tho company until November, 1937, and, as from September, to reduce their interest to 5 per cent, thus further consolidating tho company's financial position. Tho retiring directors were Messrs. A. D. Bell, 11. D. Duxfield and L. H. McAlpine. As there were no other nominations, they have been re-elected. Tho accounts show a fall of £17,150 in gross profit to £197,149. The charge for depreciation is increased by £1441 'Xo £7857, but general expenses, rates, taxes, etc., are lower by £7043 at £175,092. Paid capital remains tho same at £485,540. Other liabilities, with the amounts as at March 31, 1932, in parentheses, include:—Fixed deposits, £187,824 (£231,946); mortgages, £49,438 (£52,574); current accounts, £75,903 (£94,214); creditors, £58,533 (£65,441); insurance reserve, £IOOO (£1000); reserve for accrued expenses, including interest, £3970 (£6000); Bank of New Zealand, £121,268 (£71,741). Assets total £1,040,221, a reduction of £30,412, in comparison with the previous year. Auckland properties appear at £291,063 (£286,9/5); branch properties, £155,608 (£148,707); merchandise stocks at Auckland and factories, £133,556 (£151,402); stocks at branches, £107,102 (£91,583); mortgages, £6222 (£6756); sundry debtors, including time payment, merchant and branch accounts, less reserve of £60,226, as against £69,037, £237,744 (£283,126); cash and payments in advance, £14,508 (£16,933). Other items have shown little movement with the exception of plant and fittings at branches. Tho number of branches has risen from 54 to 63 and fittings, etc., have increased to £29,620 from £18,237. Earrings in Recent Years

The earnings of the company are the lowest since 1924, when a profit of £10,209 was disclosed following heavy losses during the two previous years, when business was affected by the postwar slump. No dividends were paid on either the ordinary or B preference shares. Conditions improved in 1925, with an advance in profits to £30,201, and, following the writing down of capital in that year to its present basis, all arrears of preference dividends at the rats of 6 per cent were met and a distribution of 4 per cent was made on ordinary shares. Ordinary dividend was increased to 8 per cent in 1927 and maintained at tbat figure until J929, when preference shares received t per cent and ordinary capital 10 per cent. Preference dividend was maintained at the higher rate until the statutoiy reduction made last year by the Government, but in 1931 the company reduced its ordinary dividend to 8 per cent as a result of a fall in profits from £60,422 in 1929-30-to £50,678, both subject to tax, in 1930-31. Last year there was a further fall in profits to £25,149, and ordinary dividend was omitted.

SHIPMENTS OF MEAT FIRST HALF OF MAY ' LAMB STOCKS HIGHER Returns just issued by the New Zealand Meat Producers' Board show the following shipments of frozen moat from New Zealand to the United Kingdom during the period May 1 to May ]5 ; Beef, 11,459 quarters; mutton, 62,458 carcases; lamb, 297,787 carcases; pork, 'IBB carcases; boneless beef, 45 bags. In addition 500 carcases of mutton and 500 carcases of lamb were exported to Vancouver, and two carcases of mutton and four of lamb to the Pacific Islands. Tho total shipments from JNew /calami for tho period from October 1, 1932 to May 15, 1933, with the totals for tho same period of last year in parentheses, wero as follows: Beef, Quarters, 163,900 (64,870); mutton, carcases, 1,083,880 (1,715,872); lamb, carcases, 5,306,391 (5,433,065); pork, carcases, 139,635 (81,539); boneless beef, bags, 122,981 .(126,728) Stocks on hand in Now Zealand on May 15, compared with last season's at the same date, are as follows, the totals for lamb, mutton and pork being given in carcases, beef in quarters, and boneless beef and sundries in freight carcases:- jm x Beef • • • • 155.191 43,325 Wether mutton . 455,231 wetner m n 4fiM9B 587.«-40 Lnmb i. ..'2,384,315 1,8)3,808 Poricers . •• 114,027 42.440 Baconers . ..■ .17,774 5,537 ' Boneless beef . . 140,576 150.340 Sundries . 44,658 .38,3/0

Stocks loaded into vessels not departed from New Zealand on May 15, with the previous season's figures in parentheses, Avero as follows ;-Bcef oi 954 (13.075); wether muttoiy 29,243 7:10 780); ewe, 45,152 (40,634); lamb, 413,'140 (300,948); porkers, 3980 (1951); baconers, 1886 (15). Shipments from Australia and South America to the United Kingdom during the first half of May were as fol]ows: — Australia: Carcases mutton, 39 124; carcases lamb, 84,122; quarters "beef 61,104. South America: Mutton. 47 597- lamb, 126,755; quarters beef (frozen), 318; chilled, 174,233. Ineluded in the .South American figures are 96,730 carcases of lamb and 36,739 carcases of mutton shipped from Patagonia. There were no shipments ot either mutton or beef from South America to the Continent of Europe during the same period.