COMMERCE AND FINANCE

Otago Daily Times, Issue 21982, 17 June 1933, Page 18

COMMERCE AND FINANCE

COMPANY BALANCE SHEETS

GORDON AND GOTCH (AUSTRALASIA), LTD,

Paid-up capital, £600,000.

* Excluding taxation reserve, t Hate per annum. An increase of £2220 in the net profit for the past half-year, when compared with the preceding six months, brings the figure not only to its highest for the latest four financial periods, but renders unnecessary a demand upon reserves to maintain the 8 per cent, per annum distribution on both preference and ordinary holdings. The balance of £1678, which is added to the undivided surplus carried forward, replaces the greater part of the total ot withdrawals that were made from reserves on the previous three occasions to meet the dividend. The trading balance, _ which has continned the improvement it showed at SeP* tember last, has reached £50,943. _ The expenditure group, at £15,509, is slightly reduced, but the provision for taxation has been increased some 50 per cent. The nature of the general expenditure is fully detailed without the amounts being entered. The expenditure has compared with the trading balance as follows: —i

The taxation provision has increased in a considerably greater proportion than the relative trading balance. A comparison with the figures at March, 1930, illustrates the additional burden which has now to be borne, . Apart from taxation reserve, the mam group of reserves shows an upward tendency. While general reserve and contingency reserve, at £215,173 and £31,000 respectively, are unaltered, a small addition has been made to the leasehold property reserve, which stands at £3019. The floating balance, at £16,438, js larger by £1678, bringing the total reserves to £265,620. The investments earmarked for reserve fund remain at £19,745 only, but with further investments of £114,738 and goodwill valued at £118,074 appearing among the assets, the manner in which reserves are represented is fairly apparent, Taxation reserve has risen to £18,321. Possibly the calls upon this account are not evenly distributed over each half-year, so that a certain amount of fluctuation is inevitable. . . The outside liabilities are divided between the general group at £92,401 and subscriptions paid in advance at £3570. A decrease of nearly £36,000 has • taken place in the total indebtedness, but as no details are given of the great bulk of the component parts, it does not appear under what headings the reduction has been effected. There is room for considerable variation in the nature of an indebtedness of nearly £IOO,OOO. Possibly an apEreciable portion may consist of interestearing items, but on this occasion a bank overdraft is not included. Fixed assets aggregate £265,694, from which there is a deduction of £3019 for leasehold property reserve. Freehold property at £206,056 is slightly reduced, but as depreciation does not appear as charged against either freehold or leasehold property, the difference is apparently due to some realisation. With leasehold property, which stands at £23,049, subject to a reserve of £3019, the position looks similar. Plant, fixtures and fittings are down to £35,032, the reduction of £IO2B appearing at what might be regarded as a fair allowance for the six months’. deterioration. No is given of the respective values of the different sections, which may be made up of items whereon the recognised depreciation rates vary materially. Stocks have fallen back to £195,161, The smaller sections are taken at cost, but the largest—stock on hand—which practically represents three-fourths of the whole, is taken partly at cost, and partly at valuation. It may be assumed that the valuation has taken place where the cost exceeded the market price. Sundry debtors, including bills receivable, stand at £239,594. The reduction of them .by some £50,000 points to the realisation which has taken place and it has. been mainly instrumental in transforming a bank overdraft of £14,581 into a credit balance of £41,849. The other chief liquid assets are little altered. Goodwill remains at £118,074, and acts as a set-off to reserves. General investments, at £114,738, have diminished. Like reserve fund investments, at £19,745, they are entered at cost. The extent of their fluctuation will depend on how the money is employed. The assumption is that the reserve fund investments still remain in the Commonwealth Loan, and, if the others arc simi-' larly placed in gilt-edged securities, fluctuation will be small. The prominent position occupied by investments has been a feature of recent balance sheets of this company.

Trading Net tDlrldend. •Reserves. Balance. Profit. Pref. Ord. £ £ £ P.c. p.c. Sep. 30. 1027 . . 108.300 75,019 41,91* 8 10 Mar. 31, 1924 . . 187,535 80,872 17,973 8 10 Sep. 30, 1923 . . 200.283 78,107 40,880 8 12 Mar. 81, 1929 . . 217.300 83,037 51.675 S 12 Sep. 30. 1929 . . 235,512 87,070 52,055 8 12 Mar. 31, 1030 . . 248,310 70,553 (1,078 8 10 Sep. 30, 1930 . . 237,330 02.415 32,702 8 8 Mar. 31, 1031 . . 201.413 63,058 27,893 8 8 Sep. 30, 1931 . . 261,413 47,377 23.751 8 8 Mar. 31. 1032 . . 204.050 41,723 22.342 8 8 Sep. SO, 1932 . . 263,720 45,807 . 23,458 8 8 Mar. 31. 1933 . . 205,020 50,013 25,078 8 8

Expenditure. Trading General, Taxation. Total. Balance. Batlo. E £ e £ p.cT Sep. 30. 1029 21,751 12,364 34,115 *7,070 39.18 Mar. 31.1930 21.238 7,638 28,874 70.553 40.93 Sep. 80, 1930 21,338 8.317 39,653 02,415 47.51 Mar. 81. 1931 17.985 7.181 26,166 63,053 47.43 Sep. 30, 1931 17,000 5.720 23,626 47,377 49.87 Mar. 31, 1032 14,400 4,972 19.381 41,728 40.45 Sop. SO, 1932 18.951 0,488 22,439 45.897 48.30 Mar. 31, 1033 15,509 0,750 25,265 50,943 <9.59