MESSRS. LOVELL AND CHRISTMAS, LTD.

Patea Mail, Volume LIII, 6 September 1933, Page 2

MESSRS. LOVELL AND CHRISTMAS, LTD.

ANNUAL REPORT,

The 29th ordinary general meeting of Messrs. Lovell and Christmas, Ltd., was held in London recently, Mr. W. G. Lovell, C.8.E., chairman of directors, presiding.

In moving the adoption of the report, Mr. Lovell said that the report submitted was not what they were expecting at this time last year, but then they had not anticipated that butter would fall in value between October and April of their financial year from 1.14 s to 60s per ewt. .and cheese from G6s to 38s per ewt., which was a fall of 43 per cent, in each case, thit level of price easily constituting a new record for lowness. They had not anticipated international exchanges, tariff walls, and quotas, rendering trading in many crises not only difficult but really dangerous. They had had those conditions to contend with, and they had had a period of unprecedented depression and want of confidence. Under such circumstances he was inclined to think that they had not done too badly in realising a. not profit of £93,153. Unfortunately, some of their overseas shippers ,in whom they were financially interested had been hit oven more severely than this company by the continued fall in the price of commodities. In many instances goods had been sold here at far below the cost of production, and heavy losses had been incurred by them. This had necessitate 1 fho withdrawal of £15,240 from the “reserve for specific purposes,”, which had been replaced by £20,000 from “general reserve,” leaving those two amounts respectively at “general reserve” £IIO,OOO and “specific reserve” £111,984. The directors recommended the payment of a dividend of 3 per cent, on the ordinary shares, carrying forward £105,875, as against £101,268 brought in. The turnover showed a very substantial increase, notwithstanding the reduction in the sterling value of the goods they handled. They had made great efforts in this direction, realising that by maintaining and increasing their turnover they wore assuring improved profits when more favourable markets came along.

As to the future, he would say that there was an undercurrent of greater confidence, and that members of thow trade generally were looking forward to more reasonable pr'C-'s in the commodities they handled. Almongii the World Economic Conference had for the time being broken down over the question of stabilisation of international exchanges, he was glad to sec that work was still to be continued on the important questions of “tariff walls” and other restrictions to the free movement of goods, also “the means to secure prices for primary commodities more in line with the cost of production.” The report was adopted.