COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 19182, 27 May 1924, Page 6

COMPANY BALANCE SHEETS.

THE TRUSTEES, EXECUTORS, ANi> AGENCY COMPANY OP NEW ZEALAND (LTD.). Paid-up Capital, £IO.OOO Dividend Grose Net cum. Reprofit. profit, bonus, serve# Mar. 31, £ £ p.c. £ 1917 5.442 2,062 15 14,752 1918 5,719 2.152 15 15,188 1919 6,069 2.169 15 15,560 1920 7,012 2,309 13 16,369 1921 7,290 2,213 15 16,934 1922 .. „ .. 7,725 2,321 15 17,655 1923 7,995 2,658 15 18,713 1924 8,603 2,805 15 19,859 The above figure® indicate a progressive prosperity which follows an almost monotonous course. Only in one period, 1920-21, waa a set-back received, and it was small, affecting the net profit alone. This company may not be able to present large amounts in its balance sheet, but it depend® leas upon the vagaries of the commercial world tnan the majority, and in the increasing turnover may bo seen tho demand for an institution of this nature. The rate of dividend has not kept pace with tho other columns, but 15 per cent, gives shareholders little ground for complaint, and it eeeoms not unreasonable to assume that, with reserves almost doubling the paid-up capital, some rearrangement of the latter may be contemplated at a not distant date. A record figure is touched this year in £8603 for the gross profit, £609 in excess of that of 12 months ago. The hulk of this is produced from agency and commission, but interest and rent are responsible for approximately 24 per cent., which in itself is more than sufficient to pay the dividend and to allow of the writing down of assets. On the other side expenses, which had shown a slight reduction in the previous year, have increased £462. This is due chiefly to standing charges which are £4OO up. The net result is a profit larger by £147, representing a return of 28.05 per cent, on tho paid-up capital. The feature of the balance sheet is its simplicity. The assets almost entirely consist of those revenue-earning and the accrued revenue earned, the return on this occasion being at the rate of 7.48 per cent, as against 7.26 per cent, for 1922-23. It is noticeable that although the revenue ia larger, the portion accrued at the date of closing the book® is considerably smaller. The sum of £27,501 is held in invested funds, made up of mortgages, debentures, deposit, and freehold property. The last-named alone ia affected by depreciation, the usual annual allowance of £IOO having been made. Their capital

value is higher, by .£2076 than that of a, year ago—a larger increase than any other recent year has been able to show. The more liquid assets occupy a comparatively small place, and when sundry creditors are doducted come out at £IOO lower than **■ March, 1923. The only liability is sundiiy creditors, £532. This gives a surplus of assets of £30,993 — an increase of £llBO over last year. The capital of £IO,OOO at tho end of 43 years hae thus ewollen more than threefold. Instead of the company asking its shareholders to made good all or part of their liability of 80 per cent, per share, it looks as if the shareholders might expect the company to hand over some of its accumulated reserve*. Tho total securities controlled on behalf of clients is now close upon three millions. The increase for the past year is £60.748, as against £261,562 for the one preceding. Although the greater part consists of mortgages and debentures, shares and other property of a fluctuating nature form an appreciable portion. Hence the rise and fall of the ehare market has a considerable influence upon this total. Mortgages have fallen otf and debentures and snares have been augmented. The relation of the increase to tho different classes of investments works cut thus:—

It may perhaps be regarded as a satisfactory sign that mortgages are reduced. Tho manipulation of such a mass of funds, in 6ome cases doubtless split up into ern-all amounts, must call for never-ceasing care on the part of the management, and the present position of the company is sufficient evidettCA of the professional skill bestowed in this connection.

Rati o. InJJc. Increase . crease. crease. creafle Invest ment. £ £ p.c. p.e. Mortgages .. — 35,712 S8.7S Debentures 67,231 — 110,67 — Shares 23,857 — 39.27 — Landed property 9,354 — 15.39 .— Other securities .. — 3,982 — 6.55 £100.442 JE39.694 165.33 65.33