COMPANY BALANCE SHEETS.

Otago Daily Times, Issue 21244, 27 January 1931, Page 13

COMPANY BALANCE SHEETS.

WELLINGTON GAS COMPANY, LIMITED. Paid-up capital: 1917, £310,337; 1918, £310,340; 1919-21, £320,340; 1922-30, £363,370. Dividend

While a concern trading even in so indispensable a commodity as gas is perhaps not so susceptible to prevailing conditions as some other businesses, the existing depression must affect it to a certain extent. The continued increase in sales shown by the Wellington Gas Company is consequently all the more creditable, although, on this occasion, it is more than counteracted by the greater expenditure. The balance on revenue account is equivalent to 15.59 per cent, on the paid-up capital, but, when the unearned income is added and depreciation deducted, a net profit of £41,366, or 11.38 per cent., is brought out. When the annual provision of £15,000 for mortgage redemption fund, and the preference and ordinary share dividends are met, there will be a deficiency of £167 to be taken from reserves. Expenditure, which has mounted steadily since 1924, continues its upward course. In relation to sales, the ordinary expenses, after remaining about the same level for some years, have made a distinct rise. They are, however, well under their proportions of prior years, as the following table shows: —

Although the sales continue to increase, no further reduction in the price of gas may be expected unless the growth of expenditure can be checked. The general indebtedness is practically all comprised under amounts due by company (£36,047). In relation to the sundry debtors the figure seems large,' as the liquidation of it would require, a larger sum than the amounts due to the company, when realised, plus the balance in bank. Considerable assistance continues to be derived from the mortgage debenture stock aggregating £200,000. Claiming 6i per cent., it effects a pronounced saving in the cost of financing the company. The present year is given as the date of maturity, but possibly arrangements can be made for a renewal ,of the greater part, if not of the whole. Since it was established three years ago the relative redemption fund has reached £60,000 by four equal, annual instalments, and is available against any repayment that may be required. The different reserve accounts total £74,300, to which the floating balance adds £21,719. The allowances for residuals, plant (£2500), and superannuation £2000) appear as newcomers, but whether they have been recently established,, or transferred from some other heading, does not appear. The assumption is that debenture redemption fund meanwhile absorbs all surpluses available for reserves, no additions being reported to the amounts earmarked for depreciation, taxation, retorts setting, and bad debts which rem Sin at £45,400, £15,000, £B4OO, and £IOOO respectively. With developments in various directions, it is not surprising to find the fixed assets growing larger. The laying of 10 miles of mains and the connection of 1425 services, with extensions to the business prepiises, account for the capital nearly £30,000 during the year. The sum of £21,123 has been applied towards writing down, giving an average rate of approximately 3.2 per cent, over the whole. As a marked increase occurs under the revenue from interest and rents, it is gathered that the greater portion of capital expended is already producing, a return. Freehold property in relation to the total assets has as follows: v Preehold Total Property. Assets. Ratio

Cash assets, consisting of investments, deposits, and money 1 in bank, comprise £65,691. The decrease during the year may be partly accounted for by the larger amount contained in freehold property and in stock, the same items being also responsible for the larger sundry creditors. Stocks at £34,460 have grown considerably, but, as the greater part probably consists of coal, there need not necessarily have been much accumulation of fittings. Sundry ' debtors stand at £26,911, bringing the aggregate of liquid assets to £127,062. A company of this nature is fortunate when approximately one-half of its liquid assets is producing revenue. LONDON MARKETS. HIGH COMMISSIONER’S CABLEGRAM. (Special to Daily Times.) WELLINGTON, January 26. The Department of Agriculture has received the following cablegram, dated January 24, from the High Commissioner for New Zealand, London: — Tallow. —No auction this week. Market quiet, with very little business doing. Spot quotations are nominally unchanged. Hemp.—Manila , market has declined further owing to insufficient support. “K ” grade, Januarv-March shipment, sold at £l9 ss, but closed better, and prices hardened. Sellers are now asking £l9 15s. Sisal. —Market dull, but firmer at the close, with buyers December-February shipment, No. 1 fair average quality, at £l6 15s; second grade, £l6. The New Zealand market is idle, with quotations noihinally unchanged. No first-hand sales are reported; , , Wool. —The sales opened on the 20th with a representative catalogue. There was a fair attendance. Competition was somewhat irregular compared with the closing rates of last senes. Merino 15 per cent, and crossbred 10 per cent, to 15 per cent, lower. There are 172,000 bales available for the series, of which New Zealand contributes 55,000, Australia 112,000, and South American 2100

Dm. 31 Reserve*. Revenue. Pref. Ord £ £ p.o. p.c. 191T .. 79.382 23,039 5 5 1018 .. 94,209 38,404 5 5 1919 .. 114.789 43,707 E 5 1920 .. 121,552 34,354 5 8 1921 .. 124.G17 28,447 5 8 1922 .. 08,212 38.445 5 8 1923 .. 83.802 54,022 5 8 1924 .. 74.890 09.409 5 8 1925 .. 90,542 04,895 5 8 1926 .. 111,752 00,838 5 •8 1027 .. 112,148 59.581 6 S 1928 .. 111.012 57,030 5 8 1929 .. 91,080 61,740 5 8 1930 .. 90,019 50,035 5 S

Ordinary Expenses. Sales. Ratio £ S P.C. 1017 .. . 122.418 81.18 1018 .. . 101,SCO 81,15 1010 .. . 188,894 78.95 1920 .. . 219,509 87.09 1921 .. . 235,206 93.02 1922 .. . 218,027 90.15 1923 .. . 200,780 82.43 1924 .. , 211.727 74.39 1925 .. . 221,550 73.43 1920 .. . 224,148 75.51 1927 .. . 239,598 75.13 1928 .. . 230,040 75.89 1929 .. . 252,895 ' 75.59 1930 .. . 257,650 78.02

e £ p.c. loir .. . 408,004 89.94 1918 .. . 471,220 88.07 191!) .. . 525,053 78.0G 1020 .. . 555,740 73.27 1021 .. , 083,228 07.33 1022 .. . 058.273 78.51 1923 .. . ■ 074,170 77.72 1024 .. . 661,644 72.73 1925 .. . 080,980 75.71 1020 .. . 084.220 83.67 1027 .. . 728,670 83,77 1028 .. . 752.273 , 83,34 1929 .. . .. 033,103 754,007 83.87 1930 .. . 707.743 83.45