BRUCE WOOLLEN COMPANY

Otago Daily Times, Issue 22399, 22 October 1934, Page 12

BRUCE WOOLLEN COMPANY

ANNUAL MEETING The thirtv-seventh annual meeting of. the Bruce Woollen Company was held at Milton on Saturday. Mr P. M Skimming presided over a small attendance of shareholders. ADOPTION OF REPORT. The chairman, moving the adoption of the annual report, said that he was pleased to be able to meet shareholders with results slightly better than those shown during the previous years. There was no doubt that the substantial increases in wool prices as well as in meat values during the past year had assisted materially in bringing about this result, but the uncertainty about wool values tor the future and the proposed quotas of produce to be admitted to the United Kingdom did not make the outlook as stable as they would like. The 100 per cent, rise in wool at last seasons sales meant a much greater outlay in purchasing raw material, and the fact that not 5 per cent, of sales for the past year were made at increased prices had been a serious matter for the woollen industry, and naturally had a very adverse ettect upon profits. This was particularly the case when they now appeared to be faced with a decided drop in the price of wool, although nobody could tell what the position would be until the wool sales opened in November, as there was no doubt that New Zealand was now' very definitely the market for New Zealand wool. It was very gratifying to be able to record a substantial increase in the sale of the company's manufactured goods, the money volume being the highest reached m ince 1930. When it was considered that this result had been obtained on prices on a much lower- basis than in that year it made the result all the more satisfactory, and went to show that the quality of the company's goods was appreciated by the buying public. Reviewing the balance sheet it was first of all very complimentary to note that the new Companies Act had called for no alteration to its form except in the statement ot the amount paid in directors' fees. Ihe company's capital and reserves remained as last year, with the exception that further provision had had to be made for income tax. The company's loans by way of deposits and bank overdraft showed a reduction of £4158 15s sd, and while thev would like to see this item very materially reduced, when the extra cash outlay for wool was taken into consideration 'the result was satisfactory, lbe small increase in current liabilities was accounted for by sales tax charged to customers, but not due for payment. Ihe position of the Company's fixed assets was shown clearly in the balance sheet, and the plant and premises were kept in thorough repair. .The value of current assets showed an increase of £486 6s Id, stock (which had been conservatively valued after due consideration to prevailing circumstances) showing a reduction of £2631 15s Bd. book debts an increase of £2722 15s 2d. and bills receivable an increase of £395 6s 7d. Advances on workers' homes showed a slight reduction. It was very gratifying to note that the liquid position of the company (or the difference between loans and current assets) had improved to such an extent that whereas loans were greater than current assets by £4557 4s Id in 1927. the present year's figures showerthat current assets were no less than. £48,204 lis «1 in excess of loans, an improvement ot £52,761 15s 8d since 1927. The figures, in the profit and loss account showed Utte variation, with the exception that this rear the company had charged, depreciation to profit and loss account instead of to profit and loss appropriation account. After carefully reviewing the position the directors were of the opinion that the dividend on ordinary shares should be increased to 3 per cent. The motion was seconded by Mr J. A. Stewart and carried. GENERAL. The retiring directors, Messrs Archibald M'Kechnie and R. M. Rutherford, were re-elected, and Mr J- J- Lane was reappointed auditor. Votes of thanks to the directors and the staff concluded the meeting.