Page 5 Advertisements Column 5

Otago Daily Times, Issue 20451, 4 July 1928, Page 5

THE COMPANY HAS ALREADY GONE TO ALLOTMENT and only a limited quantity of Debenture Stock and Shares remains unallotted. £SOOO OF DEBENTURE STOCK AND 3000 SHARES are available for Southern Investors. Applications may be lodged through any Licensed Sharebroker.

THE PRESENT PLANT. The existing plant and machinery is valued at £10,116 by Mr G. K. Hansard, of Messrs J. J. Niven & Co., Ltd., who certifies that it is in good order and condition. It will be removed to the new premises, after the completion of the further installation there. THE SUCCESS OF LAUNDRY COMPANIES. It is common knowledge that the laundry business is a very profitable one, and the relatively few companies in New Zealand which are adequately equipped to handle a large turnover and to give full and efficient service are in an infinitely stronger posiVon than that of their lesser competitors. A well-known Auckland laundry company recently made a bonus issue of one share for every five. A large Wellington laundry firm, which had an original capital of only £12,000 in 1911, now has a capital of £36,000, and it is stated that £CC39 of its Reserves were capitalised in 1923. It is known that one such company carrying on business in a city very much smaller than Auckland has an annual turnover of approximately £79,000. The dividends being paid by these companies are as high as is per cent., and their Shares are unobtainable by the general investor. THE PROFITS OF THE PRESENT COMPANY. Assuming that the turnover of the present Company in its first year is as low as £20,000, a net profit thereon of 20 per cent., which experience has proved to be a conservative figure in these cases, will provide £4,000. This net profit of £4OOO will cover the debenture interest twice over, and after allowing for income tax will largely exceed the amount required for a dividend of 8 per cent, on the 19,000 Ordinary Shares now being issued. The foregoing estimate is regarded as the minimum which may be anticipated from the operation of the extended business, while there is no reason to doubt that it will be doubled within a comparatively short period. At present the business is unable to accept further work after Tuesday in most weeks, and the reduction of hand work and the elimination of overtime which will result from the employment of further plant will largely increase the margain of net profit. THE EXPANSION OF THE PRESENT BUSINESS. In view of the above parallel cases and of the present situation of the Auckland Steam Laundry, Limited, it is beyond question that the move which is now being made is not only justified, but is demanded by the circumstances. Business which is now being turned away through lack of facilities, in addition to those classes of work which cannot be dealt with by the existing plant, is in itself sufficient to increase the Company's turnover by nearly 50 per cent., while the further new connections which must be created by an active campaign of publicity and the provision of service such as does not yet exist in Auckland will contribute to double the turnover in the near future. The present works will be leased by the new Company for £ls per week until the new premises are taken over in running order." It is estimated that the new premises will be ready for occupation in 6 months from the incorporation of the present Company, and there will be no period during which the normal activities of the business will be suspended. CONTRACTS. The following are the material Contracts to be taken over by the Com pany:— 1. Agreement to purchase certain assets of the Auckland Steam Laundry, Ltd., at the price of £IO,OOO. 2. Agreement to employ S. H. Harrison at a salary of £SOO per annum. 3. Agreement to employ M. T. Harrison at a salary of £SOO per annum. 4. Agreement with G. Stewart Craig, Ltd., providing for a brokerage of 5 per cent, on all Shares and Stock allotted, exclusive of the Vendors’ Shares and Directors’ Shares. 5. Draft Deed of Trust with G. A. Gribbin. GENERAL. The minimum subscription upon which the Directors may proceed to allotment is 10,000 Shares, inclusive of the Shares which have been subscribed for in the Memorandum of Association of the Company, but exclusive of Vendors’ Shares; but the Directors will not go to allotment until a total of £20,000 in Stock and Shares has been subscribed. The qualification of a Director is 200 Shares, and the Articles provide that the Directors shall be paid such remuneration as the Company in General Meeting shall from time to time determine. The Provisional Directors are the promoters of the Company. The preliminary expenses of and incidental to the promotion of the Company are estimated not to exceed £SOO, exclusive of brokerage and stamp duty, and will be borne by the Company.

FORM OF APPLICATION FOR SHARES. To the Provisional Directors, THE AUCKLAND LAUNDRY, LIMITED (Intended to be registered under “ The Companies Act, 1908.”) C/o G. Stewart Craig, Ltd., 41 Shortland Street, Auckland. Box 487. I HEREBY REQUEST you to allot me Shares in the above-named Company, upon the terms of the Prospectus dated the 12th day of June, 1928, AND I HEREBY AGREE to accept the same or any lesser number that may be allotted to me. I enclose herewith the sum of £ being the amount of 2/6 per share, payable on application * and I agree to pay a further sum of 2/6 per share on allotment and the balance in calls of not more than 5/- each at intervals of not less than 3 months. * or I wish to pay the balance of 17/6 per share on allotment and to receive Interest thereon at 6 per cent, per annum, until the respective due dates of the calls. Name in full (* Mr., Mrs., or Miss) Date 1928. Occupation Address Ordinary Signature.. * Cross out whichever alternative does not apply to your application.

FORM OF APPLICATION FOR DEBENTURE STOCK. To the Provisional Directors, THE AUCKLAND LAUNDRY. LIMITED (Intended to be registered under “The Companies Act, 1908.’’) C/o G. Stewart Craig, Ltd., 41 Shortland Street, Auckland. Box 487. I HEREBY APPLY' for and request you to allot me £ Debenture Stock, bearing 8 per centum per annum interest, upon the terms provided in the Prospectus dated the 12th day of June, 1928, and I enclose herewith the sum of £ being the amount of 2/6 in the £l, payable- on application. AND 1 HEREBY AGREE to accept the said Debenture Stock or any smaller amount that may be allotted to me, * and to pay on allotment the sum of £ being the balance of the said Stock, * or 2/6 in the £1 on allotment, and the balance in three quarterly payments of 5/- in the £1 each. Should a smaller amount of stock be allotted than I have applied for, the sum enclosed herewith shall be adjusted, or any excess credited to the sum payable on allotment. i request the Debenture Stock to be issued as registered in my name * bearer bonds * Name in full (* Mr., Mrs., or Miss) Date , 1928. Occupation Address Ordinary Signature * Cross out whichever alternative does not apply to your application.