N.Z. REFRIGERATING COMPANY

Otago Witness, Issue 3802, 25 January 1927, Page 14

N.Z. REFRIGERATING COMPANY

AN UNFAVOURABLE YEAR. CHRISTCHURCH. January 18. . The annual report of the New Zealand Refrigerating Company (Ltd.), to be presented at the annual general meeting of shareholders on February 2, states that in presenting to the shareholders the balance sheet and profit and loss account for the year ended October 31, 1926, the directhave to report that, owing to the keen competition for the purchase of stock in New Zealand, and the unfavourable markets for nearly all the company’s products, due to the during the English coal strike, the results arc such that they are unable to recommend the payment of a dividend. During the year the company bought the greater part of the buildings and plant of the Wanganui Meat Freezing Company (Ltd.) for £40,000. The buildings were sold to the Harbour Board for £30,000, and the plant transferred to the company’s other works. At the same time 36,310 fully paid £1 shares in the capital of this company were allotted to the trustees to be distributed in due course, to the shareholders of the Wanganui Company in exchange for their shares, and for the goodwill which has already proved of "reat value to this company. As, however, the shares and goodwill of the Wangap” : Company have no saleable value, the consider that the amount should ’ written off as soon as possible, and have accordin' written off this year £l2 103 6s Bd, being one-third of the nominal value of those items. The profit and loss account, therefore, shows that, while the season’s operations resulted in a small profit of £4627 10s Bd. The amount which the directors recommend to bo carried forward to the credit of the account will be £7412 2s 6d less than last year. Having regard to the very ad verse conditions of the industry during the past year the directors consider that the "results are not unsatisfactory, but that, as some of the unsound features of the trade still remain, they are justified in recommending the conservation of the resources of the.company, rather than the dispersal of them in the payment of dividends.