COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 18872, 26 May 1923, Page 6

COMPANY BALANCE SHEETS.

WILSON’S (N.Z.) PORTLAND CEMENT (LTD.). Paid-up Capital, £600,000. Marine Not Div. Reserves. Insurance. Profit, per Period to £ £ £ cent. March 31, 191!)* ... 1,175 March 31, 1920 ... 10,COB _ 12,972 March 31, 1921 ... 13,367 5,000 37,171 6 March 31, 1932 ... 17,350 6,007 41,989 BJ March 31, 1023 ... 25,610 0,710 63,260 7J •Ten months only. This company commenced operations about five years ago, some months prior to the close of the war. Formed as a successor to three cement companies, it started off with a paid-up capital of £(300,000, the figure at which it still stands. It has had to lace tho difficulties besetting a new concern, as well as the disorganisation of trade caused by the war and its aftermath. Although ’ tho first two periods were barren of dividend, the third produced 5 per cent., and the two ensuing years show a rise of 1J per cent, each time. Concurrently the reserve has been steadily increasing, and preliminary, expenses, standing at £3642, were written off within 24 months. The balance sheets published for the earlier periods were detailed in a manner that must have been satisfactory to all concerned. Latterly, however, the information contained in them has been cut down tq a minimum. Where the capital employed 'is well over half a million pounds, it would seem that the total of nine headings in the balance sheet can scarcely cover the points that a shareholder desires and is entitled to know. The main asset consists of the land, buildings, and plant connected with the production of cement. Since the company was established tho valuo of these properties has been regularly diminished each year, the largest annual decrement, £56,092, having taken place in tho past 12 months. If this figure represents depreciation alone, the writing down of almost 12 per cent., exclusive of any capital expenditure during the period, seems drastic. This is how property stands in relation to tho total assets: Total Proper! v. Assets. Patio. March 31, 1919 ... £543,278' £638,133 85.13 p.o. March 31, 1920 ... 530,851 645,266 82.27 p.c. March 31, 1921 ... 522,515 709,326 73.66 p.o. March 31, 1922 ... 501,295 733,501 68.34 p.o. March 31, 1923 ... 445,203 733,427 60.70 p.o. While tho property figure has been falling, tho cash and bank figure has been mounting. The bank overdraft of £30,617 four years ago has been cleared off, and cash balances now stand at £101,845 on the other side. It may be a sign of increasing business that Sundry Debtors at £78,058, after making provision for doubtful items, are higher than ever. Stock, although increased from last year, shows a considerably smaller valuation than in the earlier stages of the company’s existence. One of tho chief difficulties to contend with at the beginning wes tlfe uncertainty of tho coal supply. To obviate this, the directors purchased a coal mine. The result of this step is now seen in the fact that another company, styled Wilsons Collieries (Ltd.), appears in the balance sheet as an asset to tho extent of £81,295. As the total liabilities of this coal concern come to £81,586, it is obvious that Wilson’s (N.Z.) Portland Cefiient (Ltd.) has something more "than a passing interest in it. The bulk of this money is represented by the mine, with its buildings and plant, tho working of which after an initial loss, resulted in a net profit for the past 12 months of £6847, still leaving a balance on the .debit side of £BBB. Sundry Creditors, including provision for income tax, made the large total of £76,092. There is enough, however, in the cash balances to meet this and leave something over. Marine insurance account necessitated by the employment of the vessels in tho company’s employment, was augmented two years ago by the transfer of £4410 from profits. In the interval it has grown to £6719 The published profit and loss account supplies no details, ! the total charges not even being now stated. The net profit continue to increase, the latest annual return being 9 per cent, approximately, as against 7 per cent, in the prior year. As might be expected in a young company, reserves are comparatively small. Tho directors, sanguine apparently regarding the future, have followed the policy of dividing up tho major portion of the profits among the shareholders. Yet reserves are accumulating step by step with the increasing dividend, and in time to come will doubtless find a place of their own in tho balance sheet.