N.Z.L. & M.A. CO.

New Zealand Times, Volume XLVII, Issue 10822, 11 February 1921, Page 6

N.Z.L. & M.A. CO.

' DIBECTOES’ REPORT. The following is the twenty-sixth annual report and profit and loss account of the New Zealand Loan and Mexcanjtile Agency Company for the last year: More satisfactory conditions have, on the whole, prevailed throughout the year especially in connection with New Zealand, and notwithstanding a certain falling-off owing to climatic disturbances in the Commonwealth, the profits for the period under review show an improvement upon the figures.for the previous year. „ , After paying interest on the first ana second mortagage debenture stocks* making provision for bad and doubtful debts and other contingencies, adding >625,000 to the general reserve, and writing £IO,OOO off premises, there remained a balance of .£100,338 9s 9d. Out of this amount the directors have applied to writing down investments to their market value at June 30th a sum of <£38,592 12s Id, leaving a balance of net revenue, as shown by the revenue account, of <£121,745 17s Bd, out of this amount «£oo,ooo was paid on J une 18th last as an interim dividend of 2J per cent, on the ordinary and cumulative preference stocks, less income tax, and the directors have appropriated a sum of ,£IO,OOO to the staff benevolent fund. This leaves a balance of -801,745 17® 8d ;* the carried forward as July Ist, 1919, was >626,745 17e Bd. Out of which the directors recommend the following distributions: Final * dividend of 2£ per cent, on £1,000,000 5 ’ per oent. cumulative preference stock, less income tax at 4s 6d in the £, £25,000; final dividend of 2 per cent.,, free of income tax, on £l*ooo,ooo ordin* free of tax, £2; bonus of 2 per oent. free of income tax, on £1,000,000 ordinary stock, £20,000; leaving to be carried forward £23,491 156 4d. # In order to avoid the complications entailed by the change of legislation, as regards relief in respect of Dominion income tax, payment of the final dividend of 2 (per oent. and bonus of 2 per oent. on the ordinary stock is recommended to be made free of income tax. The net result to the stockholder will be os follows, on the basis of £IOO stock: Interim dividend of per cent, paid on June 18th, less 6s in the £, £2 40s, less 15s, £1 15s* final dividend of 2 per cent, free of tax, £2; bonus of 2 per cent, of froee of tax, £2—£4; net dividend and bonus, £5 15s, as compared with last year's net distribution of £5 12s. v Droughty conditions prevailed in most parts of Australia throughout the greab er part of the twelve months, causing considerable loesses of sheep and cattle, while the wheat crop proved an unusually small one. An exceptionally favourable season, however, is now being ex- ‘ perienceJ, and a good harvest appears 1 to be assured. In New Zealand the season on the whole was satisfactory, and the pastoral and agricultural outlook there is favourable. Tihe British Government wool purchase contract expired oh June 39th, and the 1929-1921 -Australasian clip is free from control.