FARMERS' TRADING CO.

New Zealand Herald, Volume LXXI, Issue 21807, 23 May 1934, Page 7

FARMERS' TRADING CO.

YEAR'S EARNINGS DOUBLED ORDINARY DIVIDEND RESUMED CONFIDENCE IN FUTURE The very much improved position of the company's affairs is emphasised in the annual accounts of the Farmers' Trading Company, Limited, for the year ended March 31. After provision for depreciation and contingencies, and the pricing of stocks at a conservative figure, tho not profit for the year is more than doubled, being £31,177, against £14,200 last year. With tho year's profits added to the amount brought into the accounts, there is £07,950 available. Dividends on the A and B preference shares and income tax have already been paid, arid the directors now recommend a dividend of 3 per cent on ordinary capital. Theso items combined will absorb tho year's profits, tho dividends requiring approximately £20,984, and allow approximately tho same carry-forward as hist year. The bnjak overdraft, which last year amounted to £121,267, has been completely paid off, and the bank account is now in credit to tho amount of £27,250. Sales have increased by £82,217 to £1,250,392, while at the same time a reduction in expenses amounting to £3OIS has been effected. The report adds that while tho difficulties of the dairy farmers, on whom the company no much depends, are by no means past, the directors and management Lave put the company's affairs in such a sound position that they feel justified in the spirit of quiet confidence in which they view the future.

The retiring directors, Messrs. A. A. Ross, J. E. Makgill and A. N. Macky, havo been re-elected unopposed.

The accounts show an increase of £13,929 in gross profit to £211,078. The charge for depreciation is increased by £1414 to £9271. while general expenses, rates and taxes, etc., are lower at £170,630, as against £175,092. Paid capital shows a slight increase to £485,032 from £485,540. Other liabilities, with the amounts at the previous year's balanco in parentheses, include: —Fixed deposits, £215,770 (£187,824); mortgages, £47,486 (£49,438); current accounts, £93,464 (£75,903); creditors, £90,517 (£58,533); insurance reserve, £IOOO (£1000); reserve for accrued expenses, including interest, £3960 (£3970); bank, nil (£121,267). Assets total £1,008,354, a reduction of £31,567 in comparison with the previous year. Auckland properties appear at £290,899 . (£291,063); branch properties, £154,696 (£155,608); merchandise stocks at Auckland and factories. £124,683 (£133,556); stocks at branches, £85,821 (£107,102); mortgages, £7537.(£6223); sundry debtors, including time payment, merchant and branch accounts, less reserve of £59,605, as against £60,226, £218,171 (£237,744); cash and payments in advance, £14,168 (£14,508); credit at bank, £27,256 ( —). There are slight reductions in items of plant. The number of branches has declined by eight to 55, and plant and fittings at branches are £5699 lower at £23,921. The improvement registered in the last financial year is the first uplift in profits since the 1929-30 period, when earnings amounted to £60,422, subject to tax. In 1930-31 there was a decline to £50,678, also subject to_ tax; and this movement continued in 1931-32 and 1932-33s the respective net profits for those years being £25,149 and £14,200. The latter amount was the lowest earned since 1924. Ordinary dividend was reduced from 10 per cent per annum to 8 per cent per annum in 1931, and omitted in the two following years. In the last two years dividends on the 7 per cent preference shares have been subject to the statutory reduction of 20 per cent.

TALLOW MORE ACTIVE HEMP MARKET UNCHANGED The Department of Agriculture has received th-3 following cablegram, dated May 18, from the High Commissioner for New Zealand, London: — Tallow. —There is considerably more business on spot. Fair business has been done for shipments. Trices arc the same as last quotations. Hemp. —Manila: The market is unchanged. Output, January 1 to May 14, 578,000 bales, against 401,000 for the same period last year. Stocks in the United Kingdom at April .30, 21,682 bales, against 11,212 at the same time last year. Stocks in Manila at May 14, 151,000 bales, against 141,000 at same time last year. . , , Sisal. —The market is quiet but steady. October-December shipment sold at £l7 2s Gd. New* Zealand: The market is quiet, with values nominally unchanged. No first-hand sales are reported. Stocks in London at April .iU, 21 tons, against 101 tons at same time last year. ten Fruit.—The Middlesex and Sultan Star are discharging fruit in good condition. Range of prices for Jonathan and Delicious apples indicative of quantity of small sizes. Current prices are: —Ballarat, 9s to lis; Cleopatra, 8s bd to 9s Gd; Cox's Orange, lis to 15s; Delicious, 7s to lis 6d; Dunn's Favourite, 8s to 10s; Granny Smith, 12s to 14s; Jonathan, 7s Gd to lis; London Pippin, 7s 6d to 8s Gd; Lord Wolseley, 7s Gd to 9s; Adams Pearmam, is bd to 8s 3d. Pears: Winter Cole, 10s to Lis Gd; Beurro Bosc, lis to 13s 6(1; Josephine, lis to 15s;, Winter Iselis, 10s Gd to 17s; Packham's Triumph, Vfe- P IJarrv, 10s to 13s; Kcitier, 9s Gd to 10s; Harrington and Beurro Diel, 10s* Glow Morceau, 9s to 12s Gd; icar of Winkfield, 8s to 10s; Twyford Monarch, 10s 6d. CUSTOMS EXCHANGE RATES Rates of exchange ruling at the .announced dates of departure of the vessels named ore shown in the following tablo. They are subject to confirmation by the Customs Department when the exact time of departure is learned on arrival of the vessels in New Zealand, finally declared rates being marked*: —• Canadian Leader. Canada, dollars . 5.121 Golden Bear. America, dol ars . . City of Bedford, America, dollars . 5.141 Melbourne Mam, Japan, yen ■. H 3-16 d NEW ZEALAND MONEY ABROAD * I Current dollar exchanges, as quoted by the New Zealand banks, are as under, compared with previous quotations. q Dollarß to £1 A pi. 1G Arl. 21 Apl. 30 May 7 May 21 Buying 5-2 r > 5.27 5.23 0.Scllins 5.05 5.07 5.03 5.01 5.00 Canadian Dollars to il us ss ts ass a The cost in New Zealand currency of the pound sterling and of the principal foreign units, on the lateilfc quotations, is as follows: — Present Price Par Australia, pound . • • 20 0.00 20 0.00 London, pound -, .. 24 11.58 ~o 0.00 New York, dollar .. 4 11.94 4 1.31 Montreal, dollar . .. 4 11-94 4 1.31 Paris, franc .. ( .. 0 3.88 0 1.98 Borlin, mark .. .. 1 11-14 0 lj-74 Copenhagen, krono .. ' 1-38 i Yokohama, yen .. .. 1 5. <9 2 0.58 Theso valuations represent the current rates at which the banks sell drafts payable on demand.