THE D.I.C.

Otago Daily Times, Issue 22099, 1 November 1933, Page 5

THE D.I.C.

ANNUAL MEETING A SATISFACTORY YEAR. 7 The annual meeting of the Drapery and General Importing Company of New Zealand, Ltd., was held in the Somerset Lounge, Savoy, yesterday afternoon. The chairman of directors (Mr Willie Fels) presided. CHAIRMAN’S ADDRESS. The chairman stated that before speaking on the business of the meeting he wished to refer to the loss which the board had suffered by the death of Mr Emi] I. Halsted. He had been for many years chairman of the company, and had presided, over its affairs with outstanding ability almost to the last. The chairman added that he was sure shareholders would extend their sympathy to Mr Halsted’s family and the board. After the trying conditions of last year, which had continued to some extent until recently, it was with some satisfaction that the directors could put before shareholders a balance sheet with much improved figures. The company’s capital stood at £431,283. Its indebtedness to the) National Bank had been decreased fropi £48,702 last year to £5197, and the iterp, sundry creditors, which had been reduced last year by £57,428, showed a further reduction of £4425, and now stood at £206,618. Reserves were about the §ame as last year (£85,334), and, with the addition of ’the balance carried forward (£28,387), made a total of £113,722, representing over 26 per cent, of the paid-up capital of the company, a fairly sound position, which the directors hoped to improve, in years to come. Turning to the asset side of the balance sheet the chairman stated that when reviewing last year’s balance sheet he had stated that stocks were the - lowest since 1917. They had then stood at £164,754, but this year they had been brought down even below that figure to £151,466. This was something to be proud of, and had been achieved only by the incessant care and watchfulness of the directors,, managers, and their staffs. It was the more creditable as since February all imports had had to carry the 25 per cent, exchange rate and the sales tax.

“ The working down of stocks,” he added, “ has not only resulted in smaller reductions at stocktaking, in lesser insurance, and a remarkably clean stock, but it will enable our buyers at the expected lowering of the exchange rate on London to place substantial - orders again in the Home markets, and thus carry out the spirit of the Ottawa Conference. The high exchange rate and the sales _ tax have restricted business in all directions, and the sooner they are abolished the better it will be for *Bll traders, the general , public, and, not the least, the revenue of the, Customs Department.” Sundry debtors (£65,591) showed an improvement against £69,620 last year and £86,183 two years ago, he continued. The general secretary and the secretaries in the four branches had given their special attention to the outstanding accounts during these times of scarcity of money, and they deserved to be complimented on their work. Warehouses, fixtures, and plant, at £545,700, had been written down by £15,570, as against £12.896 a year ago. Investments were £4378, against £5867 last year. The total assets amounted to £767,601, as against £811,714 last year. This was the outcome of smaller stocks and a reduction of sundry debtors and warehouses and fixtures, resulting, it was gratifying to state, in smaller indebtedness to the bank and others. Comparing the profit and loss account, the gross profit (£190,679) is £6OIO less than last year, but the disbursements were £173,573 against £193,833, showing savings of £20,260, comprising trade expenses. Interest, fire and earthquake insurance, smaller bad debts, etc. Considering the difficult trading conditions of last year, the profit and loss account disclosed a most encouraging result, full of promise for the future, and, needless to say, it had not been accomplished without the closest co-operation of the general manager, managers, and staffs. In a large, company such as theirs there had been S J changes during the year in the and the methods to adapt themselves to ever-changing modern requirements. The most important change had been in Christchurch, where Mr H. C. Hassall, who had been many years in the company's employ as assistant manager and manager in different branches, had been appointed to the management as from February last on the resignation of Mr O. ,C. Cox, who, after many years of business, had retired into private life. The directors were glad to be able to recommend the payment of a 5 per cent, dividend per annum on preference shares and 2J per cent, per annum on ordinary shares. He moved the adoption of the report and balance sheet. AN EXCELLENT RESULT.

The motion was seconded by Mr H. H. Sykes, who assured the chairman that the shareholders agreed with his remarks in respect of Mr E. I. Halsted. He congratulated the directors on what he described as the wonderful result of the year’s trading. Everyone knew what an anxious year it had been, and he was satisfied that when business improved a little more the directors would see the result of their work. Like the chairman, he thought that the Government would help the country more than it realised if it reduced taxation. He congratulated all who had co-operated in producing euch a fine'balance sheet. He thought it remarkable that expenditure should have been reduced lay £20,260 in one year, especially in view of the fact that the efficiency of the company had been so well maintained. Liabilities had decreased and'stock had been written down, an action which he believed to be essential in a business that was affected by changing fashions. He thanked the managers and staffs on the manner in which they had attended to the business of the company during the year. GENERAL MANAGER’S REMARKS. The general manager (Mr M. S. Myers) said that the company occupied a unique position in both New Zealand and Australia. This was explained by the fact that it comprised three stores, each of which was of the first magnitude in its respective main centre, and one smaller store in Wanganui, which, in its own smaller sphere, occupied a like position. This gave great scope for combined and better buying. A healthy spirit of rivalry based upon real esprit de corps had been engendered throughout the service and had resulted in competition to give everimproving quality and service to the company’s customers. Not only was the company’s service to customers thus improved, but by the intelligent use of the comparative figures of one branch with thos4 of another,, there existed a keen rivalry to secure the minimum stock-holding in relation to turnover, the cleanest of stocks, and the most satisfactory result from each year’s working. The lessons learned by all in the service from team work properly functioning were shown, in the concrete results that once a year were put before shareholders. As the result of working along the lines indicated, stocks in all branches were remarkably low. They were also remarkably clean and, with scarcely an exception, there was no department which had not a considerably smaller percentage this year of what was termed “old stock” (namely, goods over 12 months old). Because slocks were in this position, the company was able at all times to buy advantageously exactly to the current demand of its customers, and it was thus assured of being able to keep always up to date. It was pleasing to be able to report that for some time past there had been a decided tendency on the part of customers to purchase goods of improved quality. Despite the restrictions placed upon purchasing by limited purses, the true economy of quality was again being realised, and as the company’s trade had successfully been built up on the slogan “ for quality.” it is pleasing to be able to report this condition, which augured well for the company’s future.

He w-ouid fail in his duty if no mention w-ere made of the company’s staff in New Zealand and London. In all, about 800 w-ere employed in the business. The younger members of the staff had during the past year been trained in the selling side of their work and in the company’s policy of giving consistent service to its customers. He could faithfully say that the loyal spirit and cooperation of the staff as a whole with the executive officers, and in turn with the company’s directors, entitled it to the thanks of the company for the very large part it had contributed in bringing about last year’s result. They were proud of the staff, and with its aid, and in view of the present improved outlook, they looked forward with hope and confidence to being able to show a still further improvement this year in the company’s result and position. The motion was carried.

ELECTION OF DIRECTORS, Mr A. Ibbotson moved the re-election of, Messrs P. L. Halsted and Alfred Pels, the retiring directors. He stated that the balance sheet showed the service that they had given to the company., ’ Mr E. Gilkison, in seconding the motion, said that the company had come through some hard years, but it had. now reached a stage when a small dividend could be paid. They were clearly at the turn of the tide, and all that remained for shareholders to do was to wait for better times. The motion was carried. On the motion of Mr H. L. Sprosen, seconded by Mr A. J. Thompson, the following auditors were re-elected:—Messrs William Brown and Co. (Dunedin), Mr J. W. K. Lawrence (Christchurch), Mr E. R. Dymock (Wellington), Mr T. Ballingall (Wanganui), and Messrs Henry R. Frost and Sons (London). VOTE OF THANKS. Mr A. M'Millan moved a hearty vote of thanks to the directors, managers, and staffs in New Zealand and London. In thanks, the manager of the Dunedin branch (Mr G. Crow) ssaid that the affairs of the company were in such a condition that it must benefit immediately when times improved. That improvement now seemed to be definitely on the way.