COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 19001, 25 October 1923, Page 6

COMPANY BALANCE SHEETS.

SHARLAND AND CO. (LTD.). Year Paid-up Cross Net ended capital. Deserves, profits. profits. Div. Aug. 91. £ £ £ £ p.c. 1918 ... 75,000 ;Ki,nir. 52.929 ei.isi -itj 1919 ... 75,000 41,588 55,889 .12.09:1 -|7\ 1920 ... 108.250 19,797 59,499 12,1 78 1921 ... 125.000 12.881 51.430 12(1 9 1922 ... 125,000 •l-t'9s.') 5,1,(151 9,791 II 1929 ... 125,C0T *14,753 51,011 8,549 7 •Providing for income tax. f Exclusive of special dividend of (id )nr share. The results of the latest financial year's trading are not so favourable os those of the previous one. On that occasion it looked from the improvement shown as if the company’ was forging ahead to regain its former position, and shareholders may now be disappointed at tlie slight setback. The. gross profit has risen £363, but the charges have increased to a larger extent and the net profit shows a decrease of £1215, of 1 per cent. Tlie directors are apparently optimistic, however, regarding the company's future os notwithstanding these figures, they have seen fit to increase the dividend 1 pel cent. This step has made it necessary to encroach slightly’ on reserve. It is with a reduced carry forward (providing for income tax) that the new season is faced. No details are given regarding the different branches of expenditure. The large retrenchment that took place 12 months ago has not been continued, the movement in the opposite direction losing £1360 in spite of reduced taxation. Bad debts have claimed a heavier toll by £262. In former years, this charge- was a larger one, but latterly’ there had been considerable reduction. Full depreciation on premises and plant has been allowed for, the provision being practically identical with that of 1921-22. Tlie gross profit is rising gradually, and now gives a, return of 43.21 per cent. Four years ago with three-fifths of the capital the return was 74.51 per cent. Mortgages remain at their old figure of £18,750. The period of depression through which this company passed, in common with others, did not increase this total. Sundry creditors have risen by £1*2,760. This is a miscellaneous heading including bank overdraft and the word “etc.” which does not convey’ much information. Shareholders are not enlightened on the important point a-s to how ranch each branch ia responsible for. The contingent liability on bills under discount, etc., claims .£ll,-100. The aDPciai beading for reserve is maintained at £10,090. The capital of £123,000 is divided between preference and ordinary’ shares in the proportion, satisfactory from the point of view of the holders of the former, of three to seven. The stock on hand taken at saleable values is £97,333, an increase of £2404. The item of hirlieat value in the concern, its proportion towards the total assets continues to diminish. Book debts show a higher figure than formerly, the increase from last year being £12,058. This mav be the result of an increasing turnover. The reduction in plant and fixtures will be mainly due to the full depreciation allowed, and the same prohaoly holds good in respect of freehold properties. In the latter case the prudent policy is followed of writing down each year, even when the actual value of the premises ia said to exceed their book value. The secret reserve is thus maintained. In this last matter, the Now Zealand Government War Loans lend assistance, as their figure in the balance sheet is said to be under market price. As they aggregate £11,509, they cover the reserve fund and leave something over. They also will bring in a useful sum in interest annually, but whether_ it will be sufficient to compensate for tho interest on bank overdraft cannot be ascertained from the published accounts.