PRODUCERS LIMITED

Otago Daily Times, Issue 23829, 8 June 1939, Page 7

PRODUCERS LIMITED

' ANNUAL MEETING f : _ . ' ‘ V/. *v- ’ SMALL PROFIT FOR YfeAR, . . ' , ‘ ■'* I' ./ .; , :■./'> .* . The annual meeting of Prhducerg* Ltd., was held yesterday,V; Mr J. Preston presiding In '-the absence *of ■ the chairman (Mr E. H. Murhey). There was a fair attendance of members. • '/■;■. V■ • ■ Chairman’s Remarks V < • “ You will see from the figures submitted to you,”., the chairman said, “ that the company ha£ againhad a successful year and that after making provision for , all necessary contingencies a net profit is- shown for the year of £55 Is Id. 4, This-& not a large profit, .but there are several factors which should be remembered when' considering , the, balance sheet of a company such as this; In' the first place, it , • is, our; policy to supply the requirements of the farmer at the lowest -possible cost, consistent with sound business, and I think that we can claim to do this. The saving in cost to the farmer is the only dividend he gets, consequently there is no necessity for us to accumulate reserves or show a margin of profit which would be necessary if w;e had to pay a dividend. ' »| “During the ;year,” Mf^Preston continued, “ the volume of sales has kept Up remarkably well.- .The turn* over for the year amounted 1 '; to £14,046 14s sd, which is double the turnover of five year's ago. Owing to the times through which we are passing, the tendency 4s for farmers to concentrate upon necessities,, and in consequence. an analysis of our sales shows a decrease in what may be termed luxury lines—carpets, furniture, clothing, and sundries. Fortunately, sales of fertilisers and other non-luxury lines have increased. In keeping With |he'times our, costs of administration;: have in-, creased. Our book debts? stand; at £1546 Is 4d, and I can assure;, youthat , the position in this respect* isvery sound. Actually over fiTsOO.mf’ this amount has since been .liquid; ated, and the small remaining sum is causing «s no anxiety.,'.. In' any case, we have an ample reserve against possible bad debts. . Other items scarcely call for very much comment. General expenses show a reduction of £6, and bad debts, for the year are nil. Stocks are low and are very conservatively valued, and comprise readily saleable goods.'. “In conclusion,” he said, “ I should like to take this opportunity of again thanking the farmers of this province for their loyalty to the company, during the past year. I can assure them that their business is greatly appreciated, and that the policy of their directors is .to run the business of the company entirely in their interests. We have a good staff and I should like to take this opportunity of thanking the manager, Mr A. C. Cameron, the sales manager. Mr R. A. Robertson, and the other members of the staff for the efficiency and courtesy shown by them in the conduct of the company’s business. .The comr pany can be claimed to be a truly co-operative enterprise, and I am convinced that it is only by such companies as this that the real problem of the economic handling of ‘the produce and services of the farmer can. be solved.”

Seconding the motion for the adoption of the annual financial statement Mr D. McGregor Reid endorsed the remarks of the chairman and referred to the advantages which farmers could gain by dealing with the company. The motion was carried after a brief discussion. Directors Re-elected The retiring directors—Messrs E. H. Murney, J. D. Revie and Stuart Sim—were re-elected. The auditor, Mr H. P. Aitken, was also re-elected.