COMPANY BALANCE SHEETS

Otago Daily Times, Issue 19803, 31 May 1926, Page 6

COMPANY BALANCE SHEETS

NATIONAL MORTGAGE AND AGENCY COMPANY OF NEW ZEALAND (LTD.). Paid-up Capital: 1918-20, £200,000; 1921-25, £250,000.

• Excluding contingencies reserve. t Loss. The net profit for the year that closed on September 30 last exceeds that of the previous financial period by nearly £7OOO, and practically regains the ground that was then lost. The return works out at 15.04 per cent., which compares favourably with the 12.24 per cent, previously recorded, ana shareholders benefit in the additional surplus by 1J per cent. The distribution in dividend and bonus—three-filths tinder the former ana two-fifths under the latter—is 12J per cent., the highest since the paid-up capital baa i-'tood at its present figure, and absorbs £31,250, representing a larger division than in the days when the paid-up capital was £200,000 and a return of 15 per cent, was made. No allocation has been made of the balance of £6351, which goes to swell the accumulation.

General charges which had been cut down until in 1922-23 they totalled £61,472, are beginning to creep up again, and are larger by almost £2500 Land and income tax at £9205 is materially reduced, and is less than a quarter of the burden of four years ago. Debenture interest (£41,7731 makes a heavy demand upon the gross profit, but its rising tendency of a few years ago seems to have been now cheeked, and the nast season shows a still further decrease. The gross revenue maintains an excetpionally even course, the variation since 1922 being under £2OOO, after special provisions have been duly made. Among the liabilities, there is a sum of £790,965 in debentures and loan that may be regarded as definitely interest-bearing. How far the general group of £512,087 adds to the total in this respect is not ascertainable, but will depend largely on the extent of the bank overdrafts. The group covers actual indebtedness, reserve for contingen cies and “etc.,” which give it a wide sphere, and make it impossible to gauge at what figure the actual liabilities stand. Bills ’ payable are responsible for the large sum of £74,641, but, when taken in conjunction with the general group, the aggregate is short of that of September, 1924, owing to a reduction in obligations to customers and in bank overdrafts. The debenture money is borrowed apparently at the moderate rate of 51 per cent., and when it is considered lhat‘there is a total of £761,965 under this heading, or rather more than three times the amount of the paid-up capital, the advantages to the company are obvious. Reserves exceed £310.000, of which reserve fund constitute £290,000. On this occasion, as on the previous one, an addition to reserve fund has not been recommended, and considering its relation to the paid-up capital —ll6 to ICC—there does not seem much need for any. The floating balance, however, is steadily growing, and use may be made of it in the near future for a transfer to this oi some other reserve fund. There is ft further reserve among the miscellaneous liabilities, but its extent is a matter tor conjecture. The debts due to the company aggregate £1.820,223. The main portion is held in loans on mortgage, secured accounts, and property held amounting in all to £864,891. Since their great rise in 1920-21, this oora'biuation has been reduced appreciably, the past year alone showing a drop of over £BO,OOO. Its relation to the total assets has been as follows; Loans on mortgage, etc. Total assets. Batio.

The above reduction has been somewhat conteracted by the rise in current accounts which have reached £422,236. Although this may seem large, it is just about half ot their total of five years earlier. Before arriving at the gross profit, allowance has been made for bad and doubtful debts. Advances on wool and produce are now considerably curtailed. Stocks have risen to £275,821 following their upward movement of the past few years. Whereas formerly the stocks might be closely on a par with the gross profit, the growing tendency of late for them to exceed the other is becoming more pronounced The auditois' report appended to the balancesheet makes no direct reference to stocks. Investments in London and New Zealand are valued at £275,327. This is almost equivalent to the reserve fund and must provide a useful addition to the income. The rest of the cash assets consist of money in bank and on hand—£4B4B. Apparently at the lime of closing the books, there was no reason to hold money invested that was repayable at short notice. The fixed assets at £84,046 have risen considerably in proportion to their aggregate. '

Depreciation has been duly allowed, but it is nob clear whether this takes the shape of actually writing down the book value, or building up a reserve on the other side of the balance sheet. In either case their figure probably does not represent their present market price, and their comparatively small contribution to the total assets is a further indication of the solidity of the company.

Pept. •Reserves. 30. £ Grose profit. £ Net profit. £ Dividend oum General bonne, oh’r'ge. p.o. £ 1918 ... 271,813 156,651 38,222 15 76,632 1919 ... 280,753 169,896 38,940 15 69,260 1920 ... 297,941 203,172 47,188 f9,605 15 84,371 1921 ... 294,988 145,224 10 72,355 1922 ... 291,631 188,125 21,643 10 65,803 1923 ... 301,883 155,416 38,356 Hi 61,472 1924 ... 304,348 156,124 30,611 Hi 62,864 65,309 1925 ... 310,700 157,380 37,601 12J

Year. £ £ Jl.O. 1917-18 526,298 1,612,666 92.69 1118-1!) 528,065 1,688,772 31.27 1919-20 590,822 2,003,518 26.49 1920-21 ... 1,009,880 2,103,844 48.00 1931-22 ... 1,052,918 2,007,096 52.43 1922-29 989,609 1 ,949,088 50.62 1929-24 948.197 1,957,910 48.43 1924-25 864,391 1,960,268 44.10