COMPANY BALANCE SHEETS.

Otago Witness, Issue 3614, 19 June 1923, Page 24

COMPANY BALANCE SHEETS.

PERTETFAR TRUSTEES, ESTATE AND AGENCY COMPANY (LTD.).’

* Subject to amount due tor income tax. For the year ended April 30 last, this company* while able to show an increasing turnover in business, is, owing to increased expenses, left with a net result which, when income tax is met, will not be so favourable as that of 12 months ago. Always conservative in. respect of its dividend, the usual annual rate of 15 per cent, recommended for distribution absorbs not quite half of the net profit (excluding income tax). Of the residue, £IOOO is destined for reserve, and £149 for bonus to staff Following a procedure similar to that of three yeasr ago £2500 of the general surplus is to be transferred to capital in the form of a bonus dividend applied in meeting a call on shares. To make up this sum, the amount drawn from reserves will more than counterbalance the addition on this occasion. Shareholders, however, will have no need to grumble in receiving for the second time within a short period a present of 2a per 6hare. The reserve fund account, which has etood for three years at £13,000, is now increased to £14,000. At present it stands in the balance sheet at 86.66 per cent, of the paidup capital. If the directors’ recommendations are fully given effect to it will be reduced to 80 per cent. The liabilities entered in the balance sheet as balances due by company, stand at £IOO,OOO approximately, or practically double the total of last year. This is a fluctuating figure, and is contingent to some extent on the facilities open to clients for making favourable investments in the open market. Judged by the large increase in the figures on this occasion, tho expert investor’s aid has been in considerable requisition. The total assets now exceed £135,000. Of these tlio largest item consists of balances due to company, £02,106. This is an increase on 12 months ago, when they were rather under the average of recent years. In relation to tho balances on the other side, they are barely two-thirds, smaller than at any closing date lately, as the following figures will show:

The item of debentures, with the heading of deposits now added for the first time, is higher by £25,000. ’This excess, along with the enhanced bank balance, almost makes up the difference between the balances due to and balances due by. Mortgages with leasehold and building property remain about the same. The profit and toss account shows that the upward movement in charges continues to be maintained. Four years ago the total was £5691. Now it is £9983. Then they represented 59.39 pier cent, of the gross income. Now they represent 68.07 per cent. It should be noted, however, that the charges are not detaded, and that depreciation is specifically mentioned in the latter case and not in the former. That may account for the excess to some extent.

Paiil-np drops Net Apl. 30. capital. Reserves. profit. profit. Dir. £ £ £ £ p.o. 1310 ... 12,500 14.904 9,586 3,882 15 1920 ... 12,500 14,756 13,350 6,630 15 1021 ... 15,000 16.158 13,829 5,654 15 1922 ... 15,000 17.510 13,804 4,630 15 1923 .. 15,000 *17,204 14,666 *4.683 15

Balances Balancr-6 due to the due by tho company. company. Differ. Ratio. 1018-lfl ... £64,207 £76,174 £11,967 84.29. 1919-20 ... 68,647 77.017 8,370 89.00 1920-21 ... 60,004 60,159 155 99.74 1921-22 ... 47,.') 74 50.442 2.468 95.11 1922-23 ... 62,106 99,683 37,577 62.30