COMPANY BALANCE SHEETS

Otago Daily Times, Issue 19717, 18 February 1926, Page 8

COMPANY BALANCE SHEETS

AUCKLAND GAS COMPANY (DTD.).

The net profit of £79,305 is virtually a return of 8 per cent, on the paid-up capital as it stood at the close of the year. The full amount paid-up does not rank for dividend for. the whole period; hence a distribution of 8 per cent, is possible, leaving about £IOOO intact. The surplfis is practically the same as that for 1924, when the capital employed was less. On the other hand, if it had not been for the reduction of Gd per 100 cubic feet in the price of gas effected during the first half of the year, there would have been a substantial increase on the 1924 figures. The result of the trading i s that consumers have benefited while shareholders have not suffered. The expenditure under the different headings of manufacture, distribution and management aggregates £411,592, within £llOO of the previous year’s total. Salaries and wages, which amounted to nearly £45,000 in 1924, have no place in the 1925 accounts. Apparently they are now included under repairs and maintenance in the respective groups. Some relief has been felt under rates and taxes, but the general interest has increased over two and a-half times. Although the capital value represented by the fixed assets is greater by £65,000, Tt has evidently not been considered necessary to increase the depreciation allowance proportionally, the provision being reduced by over £4OOO. Among the receipts, gas sales have dropped £3812, which is not as much as might have been expected in view of the concession in price, while the demand for residuals and fittings appears to be increasing. The relative positions of expenses and sale s since 1919 are as under—

The upward movement continues on both sides although not so decidedly as formerly. The latest rise leaves the relation practically unaltered. Liabilities to depositors on temporary loan 8 now stand at £111,320. Their growth during the year comes to over £40,000, and is reflected in the larger stocks and enhanced capital expenditure. The bank balance has changed sides, and by the aid of increased deposits, it has not reached a larger figure than £1449. The greater amount expended on general interest is accounted for by these two items. The total borrowed on debentures remains as before—viz., £259,050, incurring an annual interest bill of £15,202. Compared with the paidup capital it is a sum equivalent to 26 per cent., which costs something under 6 per cfent. Sundry liabilities at £21,464 make a further obligation, but the assumption is that the queslion of interest does not enter here. Stocks form the appreciable total of £107,515. The largest value is represented by “gas fittings, etc,” totalling £39,443. It is an indication of where the demand chiefly lies at the present time when the fittings exceed the stock of coal by £IO,OOO. Accounts due to the company absorb £57,653. It is noticeable that, while the sales are nearly half a million pounds, the bad debts written, off. amount _to £835, and on this basis the above outstanding accounts may be regarded’ as almost entriely good. New Zealand Government war loan and debenture investments come to £38,700 as before, and add £1717 to the revenue. The fixed assets have all gone up. The chief extension has been in mains and services, 35 miles of mains having been laid during the year. The depreciation allowance of £25,000 is approximately 2 per cent, over all, and it not ascertainable how the provision has been allotted. The group total is £1,274,364, an increase of £65,334, which, when the depreciation provision is allowed for. means considerable capital expenditure during the period. In relation to the total assets the proportions for the past six year s are as follow —viz.:

The larger stock held have preserved normal relations between the two. Whether for lighting or heating purposes or both, the demand for gas does not seem to be slackening. In the lucid exposition of its activities delivered by the chairman at the recent annual meeting, some of the disabilities under which the company laboured were referred to, and it is satis factory that, in spite of such handicaps, the position has been so well maintained. At the same time in view of such conditions, well-wishers of the company would probably like to see something larger in the shape of reserves, even although it may mean for feiting 1 or 2 per cent, of the dividend.

Dpc. 31 Paid-up Capital. Debentures. Heserves. Net DivlProfit. dead. 1918 ... £557,817 £109,050 £143,336 p.o. £54,395 9J 1919 ... 559,226 109,060 109,050 143,621 135,830 56,484 9J 1920 ... 560,841 47,623 9J 1921 ... 830,858 258,550 31,241 61,695 8 1922 ... 833.916 259,050 32,854 8 1923 ... 938,091 •259,050 259,050 34,468 37,458 73,161 8 1924 ... 965,671 79,03 7 8 1926 ... 993,232 259,060 38,474 79,305 8

viz.: Expanses. Sales. Ratio. 1020 ... ... £321,223 £.'167,083 87.51 p.c. 1021 ... 381,170 441,124 86.41 p.c. 1022 ... 304,253 460,736 85.57 p.c. 1023 ... ... 406,855 478,302 85.06 p.c. 1024 ... 410,574 487,894 84.15 p.c. 1025 ... ... 411,502 ' 489,180 84.14 p.c.

Fixed Assets. Total Appf-fs. I! a tie. 1020 .. & 033.668 £1,027.221 86.23 p.c. 1221 .. 1,010,224 - 1,232.036 82.00 p.c. 1222 ... 1,046,000 1,206,845 86.75 p.c. 1223 1,116,037 1,303.947 85.58 p.c. 1224 .. 1,200,030 1,403,753 86.13 p.c. 1225 .. 1,274,364 1,478,648 86.18 p c.