Page 10 Advertisements Column 1

New Zealand Herald, Volume LXXIV, Issue 22670, 6 March 1937, Page 10

"THE COMPANIES ACT 1933 (A copy of this Prospectus woo delivered to the Reg Utror of Companies 1937. Hobson Street, AUCKLAND Nominal Capital :£ 1,000,000 _ A (Established 1916) (Divided into 134,887 "A" Preference Shares, 112,491 "B" Preference Shares, 125,000 "C" Preference Shares, and 627,622 Ordinary Shares, all of £1 each.) ISSUED CAPITAL "A" Preference Shares .. .. •• £134,887 "B" Preference Shares .. •• £111,980 "C" Preference Shares •» •• £29,835 Ordinary Shares .. « ». »• £335,768 mmmmm iH ii lliilll fiwiu: .. i. .tottit •• *" Farmers' Trading Co.'s Headquarters, Auckland, showing the Company's Free Buses, Free Trams, and corner of Free Parking Area. DIVIDEND AND VOTING RIGHTS The "A", "B" and "C" Preference Shares carry fixed cumulative preferential dividends of 53, 5§ and 5 per centum per annum respectively, and the first two classes have a limited right to participate in any bonuses declared. Also the Preference Shares have priority over the Ordinary Shares as to capital in the event of a winding-up. No shares may be issued in priority to or pari passu with the "A" Preference Shares. The Preference Shares have no voting power except that the "A" Preference Shareholders may vote (one vote per share) on any motion affecting their preferential rights. The Ordinary Shares carry such dividend, not exceeding 10 per centum per annum, as the Directors recommend and the Company sanctions. Their voting power is as follows:—On a show of hands one vote per shareholder and on a poll one vote for each o0 shares or fraction thereof with a maximum of 5 votes provided that a holding of less than S shares carries no vote. DD C\/ini IC The only public offer of capital by the Company within I L/rrtK the last two years was in June, 1935, when the "C Preference Shares were created and of "C" Preference and Ordinary Share capital was offered for subscription. Of this, shares to the nominal value of £32,977 were subscribed, on which the sum of £32,771 has been paid up. QII A D C rnMMIQCinM The amount'paid within the last two years as On/xixC V-. >-/1 II commission for procuring subscriptions for shares in the Company was £49/5/-. # Commission for procuring subscriptions will be paid by the Company at a rate not exceeding 5 per cent, of the nominal value. A I irMTPIDC Messrs. Hutchison, Elliffe & Cameron, of Premier Buildings, r\ULy| I vyr\J Durham Street East, in the City of Auckland, are the Auditors of the Company. Report of Auditors as to Profits, Dividends etc. for Three Financial Years up to B Ist March, 1936 AUCKLAND, C.l, 22nd February, 1937. THE FARMERS' TRADING COMPANY LIMITED , Pursuant to Section 46 of the Companies Act 1933, and to the Third Schedule Part 11 thereunder: We report that the profits made by The Farmers' Trading Company Limited for the three financial years immediately preceding the Ist April 1936, as shown by the books of the Company, were as follows: — Year ended 31st March, 1934 M »• »• £31,177 1 5 -Year ended 31st March, 1935 •• •« •• £41,277 3 4 Year ended 31st March, 1936 .. .. .. •• •• £61,458 210 The rates of dividend paid by the Company in respect of each class of shares in the Company in respect of the said three years were as follows: "A" PREFERENCE SHARES: Dividend for the year ended 31st March, 1934 •• *• 5? per cent. Dividend for the year ended 31st March, 1935 .. *. 5? per cent. Dividend for the year ended 31st March, 1936 .. .. 5| per cent. Tn 1936 there was also distributed to "A" Preference Shareholders, Bonus Shares to the value of 11.76 per cent, of their holdings. "B"PREFERENCE SHARES: Dividend for the year ended 31st March, 1934 .. .. 5? per cent. Dividend for the year ended 31st March, 1935 .. .. 53 per cent. Dividend for the year ended 31st March, 1936 .. .. 53 per cent. In 1936 there was also distributed to "B" Preference Shareholders, Bonus Shares to the value of 14.28 per cent, of their holdings. ORDINARY SHARES: - J Dividend for the year ended 31st March, 1934 « 3 per cent. Dividend for the year ended 31st March, 1935 .. .. 5 per cent. Dividend for the year ended 31st March, 1936 .. .. 5 per cent. In 1936 there was also distributed to Ordinary Shareholders, Bonus Shares to the value of 25 per cent, of their holdings. HUTCHISON, ELLIFFE & CAMERON, Public Accountants, Auditors of the above Company. DATED the 26th day of February, 1937. A. A. ROSS, Chairman of Directors. £2OO 9 Ordinary Share Issue at a Premium of I/- Per Share PROSPECTUS OFFERING FOR SUBSCRIPTION 200,000 ORDINARY SHARES of the Com< pany. PRICE: 21/- per share payable, at the option of the applicant, as follows: (a) The full amount (21/-) on application, or (b) 3/- per share on application and the balance on allotment, or (c) 3/- per share on application, 2/- per share on allotment, and the balance as and when called up pursuant to the Articles of Association, ihese provide that no call shall exceed 2/- per share or be made within 3 months of the last preceding call. (Note. —Dividend runs on instalments of share capital from time of payment thereof) APPLICATIONS may be made direct to the Company, Hobson Street, Auckland, or through any member of a New Zealand Stock Exchange. REASONS FOR THIS ISSUE For a number of years past we have been employing as working capital a considerable sum of money in the shape of fixed deposits, at present amounting to about £200,000. The very substantial growth of our business over the past few years, requiring heavier stocks and building extension, and the greatly increased profits which have resulted, make it clear that this money can be permanently and profitably used in our rapidly expanding business. By raising share capital to repay these deposits the'interest now being paid out on same, amounting to about £B,OOO, will be saved and our profits increased by that amount, which in itself after making due allowance for extra Income Tax, will go a long way towards paying the dividend on this new Capital. The following figures will give some idea of the steady and substantial groAVth of our business, which shows every indication of continuing its present upward trend. INCREASES IN RETAIL SALES Year Ending March 31st, 1935 « Year Ending March 31st, 1936 ~ 10 Months to 31st January, 1937 .. 1,572,744 February and March, 1937 (Estimated) 301,000 SALES £ 1,339,286 1,604,491 1,873,744 INCREASES £ 88,894 265,205 269,253 This shows an increase in sales in three years of £623,352, or an average increase of over £200,000 per annum over the previous year's figures. The following is a ten year summary of the profits and dividends:— APPLICATION FOR SHARES TO THE DIRECTORS OF THE FARMERS' TRADING COMPANY LIMITED, HOBSON STREET, AUCKLAND. GENTLEMEN— Referring to the Company's Prospectus offering Ordinary Shares for subscription at 21/- each, I enclose the sum of £ - being a deposit of 3/- per share on Ordinary Shares of £[ each in the above-named Company. 1 hereby request you to allot me that number of shares, and I hereby agree to accept such shares or any smaller number you may allot me, subject to the provisions of the Memorandum and Articles of Association of the Company, and I agree to pay a further 2/- per share on allotment and the balance as called up pursuant to the said Articles. Ordinary Signature _ Please Name (in full) .. ____ J (Please state if Mr. Mrs. or Miss. If Mrs. give husband's nsrne in brackets) Distinctly. Address (Residence) Occupation THE FULL AMOUNT MAY BE PAID IN ONE SUM WHEN THE APPLICATION IS MADE, IF SO DESIRED. Tn addition bonus shares to the value of £60,846 were distributed in 1936 to Ordinary Share* holders. NOTE.—While profits were made right through the depression years of 1932 and 1933 the Directors thought it wise to pay no dividend in these years and to conserve the assets of the Company by paying only moderate dividends thereafter. However, when it was clear that the depression was well past, Bonus Shares were distributed in 1936, amounting in the case of Ordinary Shareholders, to 25% of the value of their holdings. Taking this into consideration it shows an average return over the 10 years of 8.2% per annum, free of income tax, being 5.7% dividend and 2.5% bonus. If calculated over the past 3 years, which covers the period during which the Share Bonus was earned, it represents a return of 12.6% per annum for this period. The profits for the year ending 31st March, 1937, from the figures now available, will exceed £IOO,OOO, which after allowing for income tax will leave £62,500. The Directors purpose folio-w----ing the same policy as in the past by recommending only a reasonable dividend this year, viz. 7% (this would of course be free of income tax) which with the preference dividends will absorb £3B 800, allowing the balance to be used in the expansion of the business and creating the basis for a further distribution of Bonus Shares in which the shares now offered would be entitled to participate. IMPORTANT The reason for charging a premium of 1/- per share, thus making the price of a£l share 21/-, is as follows:—Our shares have for some time past been selling above par. On the lbth February the ordinary shares were quoted on the Stock Exchange list, Buyers 2>>/6, Sellers 23/9. This was at a time when the public had no knowledge of the incicase in this years profits as revealed herein. We realise, however, that the offer of a large number of shares will probably bring the price down temporarily, but to protect present Shareholders and buyers of this new issue we undertake to put the price of unissued Ordinary Shares up to 23/6 as from the 7th April next. Whether the full 200000 have been applied for or not we undertake not to accept applications for any further Ordinary Shares after that date during the remainder of 1937 at a less premium than 3/6 per share. Your application for these shares at 21/must reach us not later than April 7th, but as the total issue may be applied for before that date we suggest you send in your application without delay.