STILL POPULAR

NZ Truth, Issue 1273, 24 April 1930, Page 9

STILL POPULAR

Financial Reviews

Christchurch Gas Company As Profit Earner SUCCESSFUL YEAR

(By "Fiat Lux.")

Although electricity generated by hydro-electric power lias had a long run m Christchurch, and its value for household and factory purposes lias been actively pushed by an energetic Municipal Department, gas still remains popular as a' heating and cooking medium, and the sixty-sixth annual report and balancesheet of the Ohristchurch Gas Company indicates tha,t that concern may still be regarded as a profit-earning medium for its shareholders. ,

I DURING the year nine miles of mains were laid, of which nearly Aye miles were trunk mains laid with a view of future requirements m the district. The report states that 396 new consumers were added during the, year and the company has now 23,808 meters m use. The sales of gas, coke, tar, etc., show an increase of £ 5580 over the previous year. The. use of gas for storage water heating has been stimulated by a new scale of charges. A notable feature of the balancesheet is the opportunity being

afforded to employees of acquiring shares m the company and the deposits against applications for shares showing an increase of £5154. , / X Liabilities to sundry creditors show a decrease of £3440. On the assets side, working plant, buildings, mains and meters, show an increase of £6595, after writing off depreciation of £13,386, indicating, an expenditure of £19,981 on these assets. The second section of the new retort benches m the horizontal retort house was completed early m the year and the only other addition af the works was a plant for drying gas, designed to minimise corrosion m mains and services due to deposition of moisture. The company has acquired s the build-

ing adjoining the present office and a contract has been let tp convert the whole premises into thoroughly up-to-date offices and showrooms. This will enable the company to effectively display, the most modern gas appliances and also provide ample room for future developments. Debtors show an increase of £3090, while stocks of coal are less by £8470. Other stocks show an increase of £217 and cookers on hire purchase show an increase of £2687. The modern gas cooker is a much more elaborate affair than its

simple predecessors and consequently more expensive. Cash at bank shows a decrease of £2157. The net profit is £27,344. The Shareholders get the customary 8 per. cent, dividend which absorbs all but £423 of this amount and a balance of £8515 is carried forward. Approximate market values of the shares were recently given as £1/5/9 (£1 fully paid), 12/4 "(10/- paid), which shows a return on investment of £6/4/3 and £6/9/6 respectively at the 8 per cent, dividend. The shares offer a reasonably safe investment and shareholders should be able tq look forward to a continuance pf present rate of dividend. The following table indicates results over the past five years: —

CHRISTCHURCH GAS COMPANY. Condensed Comparative Balance-Sheet as at December 31, 1929.

* Indicates increase and f decrease as^ compared with 1928.

LIABILITIES! '"" iv ASSETS. Capital paid-up 336,495 — . Freehold property 24,775 — Deposits by employees Plant, buildings, mains against applications and meters 502,310 *6,595 for shares 7,837 *5,154 Furniture 622 *176 Reserve fund 66,410 — Investments 190 — Renewal fund ...... 47,837 — Debtors 13,881 *3,090 Dividend, 31/12/29 .. 13,460 — Stocks 31,566 f8,263 Profit and loss A/c. . . 8,515 *424 Cookers on hire purchase 38,257 *2,687 Shareholders' funds 480,554 *5,578 Bank , 12,519 f2,157 Debentures .......... 100,000 — Taxation reserve .... 14,048 — Sundry creditors ... 27,518 f3,440 £622,120 *2,138 £622,120 *2,138

1925 1926 1927 1928 1929 £ £ £ £ £ Sales, gas, etc. ... 181,028 181,662 183,504 182,098 187,678 Net profit 28,819 24,137 22,272 28,052 ?7,344 Dividend, amount 23,163 23,146 23,518 26,527 26,920 Dividend, rate .. 10 - 8 8 8 8 Reserves *182,183 *125,089 120,815 122,340 122,763 *£ 57,909 reserves afterwards capitalised.