COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 19256, 21 August 1924, Page 6

COMPANY BALANCE SHEETS.

THE KAIAPOI WOOLLEN MAN CFACTURING COMPANY (LTD.). Year Paid-up llinrlpnd. rndnl capital. Reserves. Balance. 1 tcl. <«“• June. 30, £ £ l ~ I’; 0 ' P .F inin .moon 154,563 •' [320 300,009 60.473 0 10 376,265 io«,o;w 37,3:11 - * l').M r.Tfi 07!• 00.7(77. •83.320 7 8 I'l'-i ... 376.273 41.038 *21.125 r. R)->4 375,000 40.045 3,282 » • Ross. Although the result for the year lately closed is a distinct improvement on those of (he preceding two seasons, the optimism expressed in the previous annual report has scarcclv been realised. Competition from outside is ono reason assigned for the dullness of trade, while the fact that the mse in the price of wool was not followed by a corresponding rise in the selling prices has had its effect. , The ordinary shareholders for the second vear in succession are to receive no dividend, the, profit cf £5-282 leaving little over after the 1> per cent, to preference shareholder? has been met. It is the tlrst time in thiec years, however, that any dividend, preference or ordinary, has been paid out of surplus. The chief factor in producing this surpJus is the reduced charges, a saving of £22,000 approximately having taken place in ‘he group that consists of rates, taxes, salaries, interest, and discount The increases in the. other expenditure ia more than compensated for by the larger gross profit, which has risen from £75,501 to £BO,IOO. The re iation of the aforesaid group to the gross return ia now more favourable in consequence, as will be seen below; Pates dross Tear. tuxes,ete. return. Ratio. 1318-13 £31,001 £114,501 20.87 p.c. 1313-20 54,707 361,074 33.33 p.e. 3020-21 54.015 1.11,411 41.70 p.c. 1021- 77,416 21.302 355.22 p.c. 1022- 63,243 75,501 83.76 p.e. 3023-24 41,430 80,180 51.68 p.c. Large stocks still seem to be canned, the increase from that of 12 months ago being in the neighbourhood of £70,000. As this is the matter on which the welfare of the company chiefly depends, it is needless to say that rigid supervision has teen exercised in regard to the values. The stock, figure, £453,251. occupies what almost seems a disproportionate place when compared with Die gross return, but the excessive importation of woollen goods into this dominion during the period under review is doubtless mainly responsible tor this position. For the past six annual closing dates the proportion to the total assets has been: Total Yc-nr. Block. assets. Ratio. 1318-PI ... £317,003 £541,236 58.57 p.c. 1313-20 ... 313,614 606,758 52.67 p.c. 1320- ... 523,822 817,271 64.03 p.c. 1321- ... 425,760 630,233 61.68 p.c. 1322- ... 384,286 650,258 53.10 p.c. 1023- ... 453,251 732,438 61.88 p.c. Property and plant have in no wise suffered by the adverse seasons through which the company has passed. Each year depreciation has been written off, the amount on this occasion representing slightly more than 2i per cent, over ail. The asset is steadily growing in value and has now reached £184,382, but whether this increase is duo to land, buildings, or machinery, the published accounts do not disclose. In view of the branch clothing factories at Timaru and Grcymouth having been closed during the year, so large an increase might not have been expected. Sundry debtors, including bills receivable, comprise the bulk of what is left on this side of the balance sheet. These at £90,287 allow little variation from tho figure of 12 months earlier, Tho total liabilities to the public are sundry creditors and deposits totalling £310,735. This is considerably larger than in previous yeans, and may be attributed in no small part to the enhanced stock. Tho bank balance is evidentaly included, but it cannot be ascertained whether further money has been borrowed on deposit during the year. The only alteration in the paid-up capital is caused by the withdrawal of the employees’ benefit shares from that heading, and by their being placed in the list of genenal liabilities. The total paid in ordinary shares still stands to that represented by preference shares in the proportion roughly of four to one, no call Laving been made during the year in respect of those that are part-paid. This may be regarded ns surprising when it is remembered that out of the total assets of £733,498 no less than £637,634 is tied up in fixtures and stock. Tho downward movement in the reserves has been checked. They have proved equal to tho demands made upon them in recent years, but are only a shadow of what they have been. As the.re has been no call upon them in respect of year 1023-24 to-.-rnake losses good or meet dividends, it is to be hoped the tide has turned, and the current season may show some-thing in tho way of augmentation both to them and.the company generally.