BRUCE WOOLLEN COMPANY

Otago Daily Times, Issue 25384, 16 November 1943, Page 3

BRUCE WOOLLEN COMPANY

A SUCCESSFUL YEAR HEAVY TAXATION DEMANDS " The Government will receive / the largest portion of the company’s earnings again this year in the form of income tax. social security tax. and national security tax," said Mr F. L. Nicolson, chairman of directors of the Bruce Woollen Manufacturing Company, Ltd., when addressing the annual meeting of shareholders at Milton yesterday. “ When I tell you that during the past four years the amount reserved for taxation has been £231,500, and that the shareholders’ return during this period has been £43,200, you will have a clear understanding of the drag which taxation has had on the finances of the company, with a resultant retarding of its normal expansion.” An increase of £3350 in gross profits as compared with the previous year was recorded. Mr Nicolson said. The year’s record turnover produced a net profit of £23,534, compared with £20,501 last year, an increase of £3033. Provision of £67,000 had -been found necessary to cover taxation. and £12.000. had been written off plant and premises as depreciation. It was recommended that the net profit, with the addition of £10,109 brought forward from the previous year, should be distributed as follows—Dividend on preference shares, £2800; dividend on ordinary shares of 6 per cent., £6000; bonus on ordinary shares, 2 per cent., £2000; transfer to reserve account. £11,000; carried forward, £11,843. New items in the balance sheet Included advances to workers for their contribution to the Liberty Loan, and these were being repaid by deductions from the employees’ earnings. Advances to workers for homes had also been found necessary in order that suitable accommodation might be ensured. Mr Nicolson surveyed the year’s activities at the mill, which, he said, had been heavily taxed by the urgency of both the armed forces and essential civilian requirements. The ability of the mill to switch over from defence to civilian production in June of this year had greatly assisted in providing certain civilian requirements. Tire directors were planning to have adequate machinery and plant available to meet civil demands as soon as the war ended. The annual report and balance sheet were adopted on the motion of the chairman. seconded by Mr A. H. Allen. Messrs T. Espie and R. M. Rutherford, the retiring directors, were re-elected unopnosed. Messrs J. W. Smeaton and Co. were appointed auditors. Appropriate reference was made to the late Mr J. J. Lane, who for 34 years had been the company's auditor.