BOOTH, MACDONALD

Otago Daily Times, Issue 27499, 20 September 1950, Page 9

BOOTH, MACDONALD

Lower Profit On Record Turnover Daily Times Special Service CHRISTCHURCH, Sept. 19. An increase in the gross profit from £104,063 in 1949 to £116,495 a reduction in the net trading profit from £32,511 to £25,189, and a record turnover are features of the accounts of Booth, Macdonald and Co., Ltd, for the year ended June 30. The profit for the year, after taxation, is reduced from £13,811 to £10,689. Dividends maintained at 51 per cent, on non-cumulative preference shares and 5 per cent, on ordinary shares absorb £7785, and to the balance of £2904 is added the accumulated balance of £28,660 brought forward from last year. The balance carried forward is thus £31,564. against £28,660 in 1949. Expenses, which total £91,306—£71,552 in 1949—include directors’ fees, reduced from £736 to £SOO, and depreciation, Increased by £3260 to £20,126. The provision for taxation In the appropriation account is £4200 lower at £14,500.

The company is a New Zealand-wide distributing organisation, as well as a manufacturer, and the directors are deeply concerned regarding the distributing problems existing at present and the cost entailed. Dissatisfaction is expressed at the continuance of existing controls, with their hampering effects and the non-avail-abilitv of skilled labour necessary for full productivity. The continued high level of taxation still leaves little scope for the setting aside of reserves necessary to meet the high cost of replacements.