COMPANY BALANCE SHEETS

Otago Daily Times, Issue 19196, 12 June 1924, Page 6

COMPANY BALANCE SHEETS

PERPETUAL TRUSTEES ESTATE \ND AGENCY COMPANY OF NEW ZEALAND (LTD.). Year Paid-up Re. Gross Net ended capital, serves, profit, profit. Div. April 30, £ £ £ £ p.c. 1919 .. 12,500 14,991 9,586 3,892 15 1920 12,500 11,756 13,330 6,630 15 1921 .. 15,000 16,158 13,829 5,651 15 1922 .. 15,000 17,510 13,801 1,631) 15 1923 .. 15,000 16,616 11,666 4,681 15 1921 .. 17,500 *18,839 15,207 6,268 15 'Subject to deduction of income tax for year 1923-21. This company seems to be enjoying increasing prosperity 'the older it grows, and its mu VICeS seem to bo ever greater in demand, the result of the past year’s transaction's is a net profit of £6268. At the end of 1919-20 tlie surplus was slightly higher, but that wue in the days when expenses had not reached then' present dimensions. The gross profit is the largest recorded, and with charges ciown by some .£954, the net result is .£lsßl up on that of 1922-23. The return comes to 35.81 per cent, on the enhanced capital, and out of it shareholders receive their usual 13 per cent. No addition is mode to reserve, but tho needs of the employee's receive due attention in the formation of a staff benefit fund. A bala.noe of £4839 is carried forward (subject to income tax for, the year just ended), as against £3294 12 months ago. In relation to each other reserve and share capital have kept fairly level. The actual reserves now exceed the paid-up capital notwithstanding the raising o,f the latter at the beginning of the year. To avoid a gross return of 100 per cent., it looks at if the paidup capital would require to be still further increased. The ratio of capital to the. funds involved is in thrilling contrast to that of a commercial company. The balances due by the company stand at £100,573. This is slightly larger than at the close of 1922-23, but from the general wording there is not much information convoyed. The staff benefit fund, for instance, is now' a balance due by the company, and in itself more than accounts for tho increase. Taking the assets which in aggregate show a rise of approximately £2500, some considerable alteration has taken place in their grouping. Debentures now stand alone at £18,550. 'When deposits were added last year the total was £44,550. Deposits are no longer mentioned, and tho substantial increase in ‘ balances due to company”—£l9,23s—may lie partly due to the disappearance of deposits as a heading. Mortgages, leasehold, and buildings have gone up about 25 per cent. From the designation of this property, it might almost be assumed that mortgages form the greater port and, as depreciation is not mentioned in the profit and loss account, the capital value of the wasting asset is apparently not large. The bank balance, which formerly swayed from side to side of the balance sheet, never fur from the dividing line, has now fixed itself firmly on the assets side and is strengthening its position. The largest asset, “balances due to company” has reached £81,401. Whatever this may consist of, apart from advances to clients, cannot be discerned, but its rise during the post 12 months has placed it well ahead of previous years. When put opposite the balances due by the company, the relation between the two more closely approximates the preceding years as the figures below bear out: Balances Balances due duo to the by the Differcompany. company, enec. Ratio. Year. £ £ £ p. c . 1918- .. 61,207 76,174 11,967 84.29 1919- .. 68,647 ■ 77,017 8,370 89.13 1920- .. 60,004 60,159 155 99 74 1921- .. 47,974 50,442 2,468 95 11 1922- .. 62,106 99,683 37,577 62,30 1923- .. 81,101 100,574 19,173 80.93 Out of the previous annual surplus £2500 was set aside as a bonus payment to shareholders to moot a call on share capital of similar amount. The rate of dividend has not ‘been affected by this distribution. On tins occasion tho staff have, had a eliaro in the division of tho surplus, £1260 being set aside to start a staff benefit Innd, °This provision has solved what looked a matter of some difficulty—viz., tha disposal of the fast accumulating funds. Tire rvoy in which this question will be dealt with in next and other future yours will bo followed with interest.