COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 18736, 14 December 1922, Page 6

COMPANY BALANCE SHEETS.

THE GEAR MEAT PRESERVING AND FREEZING COMPANY OF NEW ZEALAND (LTD.). Div. with I’aiJ-up Net bonus. Nov. 30. capital. ' profit. Reserves. p.c. ISIS ... £02,000 £107,415 £506.247 25 1910 ... 02,000 166,607 630,313 35 1920 ... 460,000 138,548 333,546 7J 1921 ... 460,000 71,272 336,317 T\ 1922 ... 460,000 96,610 371,951 8J Prom the above figures it is apparent that the period of depression through which t,ne general community is passing, and which has hit the farming community hard, has not affected every pastoral concern to the same extent. Her© is a company, working on a capital by no means large, that has prospered eo greatly that' three years ago the net profit represented 181.09 per cent., and the reserves 685.12 per cent, of the paidup capital. Thereafter it was decided to increase the paid-up capital fivefold by transferring from reserves. Since then div.dends have been paid on a slightly larger scale, the mulcted reserves at tho same time being gradually replenished. Tho slump is reflected on the returns for the year 1920-21, when the net profit fell almost to one-half of the previous year’s and no provision was made for reserves in the profit and loss account. This setback, which did not cause a drop in the rate of dividend, appears to have boon temporary, as the latest financial year shows an increased net profit and additions to reserves. The most striking feature in the profit and loss account for the past year is the reduction in office and legal expenses, including rates and taxes. It may be taken that the hand of th© tax gatherer has not been laid so heavily upon the company owing to reduced rate and smaller profits. Tho charges for tho latest five years and the appropriation towards liability for taxes, etc., are as follows: ApproprioCharges. tion. 1917- £44,595 £35,000 1918- ... 29,482 36,000 1910-20 42,587 60,000 1930-21 60,360 40,000 1921-22 14,074 37,600 The gross profit has diminished by £11,012 7s in comparison with that of 12 months ago, but owing to the reduction in charges, the net result permits of additions to reserves, th© payment of a slightly larger dividend and a balance to cany forward of similar amount after an appropriation for taxes. Apart from a trifling balance on unpaid dividends, the liabilities to, the public are included under the one heading, “Sundry creditors,’ - which at £86,172 is lower than it has been for some time past. With advances from the Imperial Government, it went as high as £380,794. Tire total of the two reserve accounts approximates the figure lor investments on the other side, and it is not surprising to find that the larger of the two admits of the payment of a bonus of 3d per share. Properties, plant, and furniture remain at th© same amount as for the last two years. Depreciation will bo dealt with by the charge against profits in respect of these assets. Sundry debtors and deposits ar© smaller, but it is not apparent which heading is responsible for the reduction —possibly the latter, looking to the large increase in investments account® lower down. Stock in hand continues to shrink annually in value. It now stands at something near a tenth of what it showed four years ago) when shipping facilities were n-t so good. A largo credit balance at its bankers is a characteristic of this company. Apart from deposits, the amount of which is not stated, tho investments bear the following relation to the surplus funds in recent years—viz.: Invest- Surplus meats. funds. 1917- £104.933 £844,747 1918- 109.933 768,813 1919- 119,933 850,796 1920- 119,113 853,567 1921- 334,806 892,451 They have increased, therefore, from 16.27 per cent, in 1917-18 to 37.51 per cent, in 1921-22. With tho company occupying so strong a financial position, it. is not to be wondered that tho breaking of the storm affected it but little, and it was soon able to proceed on its way in a manner that must be the envy of its weaker brethren.