PROSPERITY AHEAD

Poverty Bay Herald, Volume LX, Issue 18255, 25 November 1933, Page 4

PROSPERITY AHEAD

GISBORNE SHEEPFARMERS’ COMPANY FINANCES MUCH IMPROVED PREFERENCE DIVIDENDS AGAIN Y* “It must- he appareflj to all shareholders that the eompMv is rapidly, regaining lost ground, and with a continuation of your whole-hearted support should soon be in a position to give yon something by way of rebates or dividends.” ’stated Mr. H. B. Williams, chairman of directors of the Gisborne Sheepfnrmers’ Frozen Meat and Mercantile Company. Limited, in the course of his annual address to shareholders at the general meeting of the company, held to-day. , Air. Williams reviewed the general position of the company! pointing out, that despite the difficult circumstances under which freezing and mercantile business had been operating -during the past year, the finances had improved in many ways, and that economical management had placed the company in a position to wipe out two years’ preference dividends, as recommended by the directors. The meeting was not largely attended, shareholders generally regarding the gathering as purely formal, and tlieC directorate comprising almost a majority of those present. In moving (lie adoption of the report-/ and balance-sheet, as circulated previously and reviewed at the time in the Herald, Mr. Williams gave the following comparative figures relating to killings for the past two seasons at Kaiti and Tokomaru Bay:— Gisborne 1931-32 1932-33 Sheep 296.636 224,701 l>a mbs ... ... 318,613 321.605 Cattle 9.292 15,744 Calves i 463 161 Pigs 1,563 5.524 Bobby calves ... 2.246 Freight carcases...’ £57.685 570,673 Increase of 32.988 freight carcases in favor of season 1932-33. TOKOMARU BAY 1931-32 1932-33 Sheep ... ... 109.553 78,217 Lambs 59,798 60.721 Cattle 886 2,862 Calves 1 15 Pigs 298 61 Freight- carcases... 131.972 134,488 Increase of 2516 freight carcases in favor of season 1932-33.

“At both Kiiili and Tokomaru Bay, tho quantity of sheep handled shows a decrease, lamb totals are about the same, the cattle figures reveal a marked increase, and pig and bobby calf killings at Ivaiti also show an appreciable increase,’’ slated the chairman. “Although the individual totals are generally lower, the weight of meat handled, or in other words the freight carcases, show an improvement for the year. "There is no doubt that had freezing charges not been reduced before the season commenced, a- considerable number of sheep purchased by dealers for forward delivery would not have been killed at our factories, and the decrease in sheep would have been much greater. “The season commenced with labor difficulties, which, of course, were general throughout New Zealand. We were, however, fortunate in that nearly all the old employees commenced at Tokomaru Bay after only a few days, and the majority of Kniti’s old employees commenced after a few weeks. The delay and expense of installing the chain system was thus avoided, whereas the majority of freezing works in order to carry on were compelled to go to this expense. “Additional storage for 40.000 freight carcases has been provided at Kaiti, and no effort has been spared to enable the works to cope with all the stock offering. Similarly, at Tokomaru t Bay, several minor alterations have been made towards the better handling of stock and greater efficiency.” .MERCANTILE BUSINESS

The chairman then reviewed the effect of the freezing merger, as detailed in another column, and referred to the decision of the directors that freezing rates at Tokomaru Bay should bo reduced, lie then proceeded to deal with the gen eral position of the company's affairs, as under:—

“Turning to tho mercantile side oi your business, it is a matter for congratulation that such a satisfactory position has been reached when one considers that the past year has witnessed tho lowest values for wool, moat and butter since the commencement of the depression some four years ago. It is apparent that although tho full benefits were not received in the year under review, tho action o; t lie Government in increasing tho exchange rate and lowering interest charges has benefited farm ers and farmer concerns. The year has been a most difficult one for all concerned, and whilst it has been necessary to curb expenditure, clients and others have met the position in tho right spirit, ancl I think we can safely face the future with a more optimistic feeling as values appear to he definitely on the increase. The period we are just passing through has made one and all realise the necessity for a continued careful conduct of our affairs and for the abolition for all time of indiscriminate expenditures and dealings. “I will now give you a brief explanation of tho main differences between last year’s balance sheet and this. On the assets side, fixed assets are lower by £9026, made up of depreciation, £10,750, less sundry new plant installed amounting to £1724, the main item of which was a new Diesel lighting plant at Tokomaru Bay costing £SOO. The difference in shares and investments is the £ISOO debenture sinking fund, set aside annually. The increase in consignments represents a larger quantity oi unrealised produce at balance date. Secured accounts are some £2136 higher; this is «* small percentage of increase for the year and more than a half is in ade quately secured accounts. Mercantile open accounts are higher by £550, and bad debts to the extent of £llOO have been written off against this year’s profits The main item in the freezing debits is rent from the Gisborne Refrigerating Company, Limited, for tho Kaiti works, ami the amount received from this source was less than last year. It will bo noticed that our bad debts reserve is just over 12 per cent, of the debts, and when we consider that last year’s valuation revealed that- 11 per cent, was adequate provision, 12 per cent, on this year’s value of livestock must make the reserve very much better. Stocks of merchandise and materials are lower by £2657; stocks of materials on tlie freezing side have been considerably written down; there is therefore no appreciable difference in mercantile stocks. “On tho liabilities side of the balance sheet, there is no alteration in the share capital; mortgages show a reduction of £2363, and bank overdraft a reduction of £&4,328. Sundry creditors are about tho same. Allowing for an extra £3OOO received this year from Kaiti, bank overdraft and mortgages jointly show a reduction of £23,691, and taking into account the small net difference in the lussets, £23,691 represents the year’s profit plus depreciation. “Turning to the profit and loss accounts, tho reduction in interest rates and general expenses amounts to £10,103, whilst gross profits in the freezing department are lower by £3567, and in the mercantile department are higher by £4045. Tho profit and Toss appropriation account has changed from a debit balance of £8430 9s lid to a credit balance of £4360 3s lOd.

“I think you will all agree that this is a most satisfactory state of affairs, and discloses a very marked improvement in the company’s position. Your directors aro therefore pleased to recommend the payment of two years’ freezing and mercantile preference share dividends.” DEPORT AND BALANCE SHEET ADOPTED The adoption of the report and balance sheet was seconded by Mr. W. 0. Sherratt. There was no further discussion on the documents, which were duly adopted. Messrs. IT. Kenway, M. L. Holden and G. M. Reynolds were returned to tho directorate on the motion of the chairman. In resjX'ct of tho appointment of auditors for the ensuing year, Mr. T. Corson suggested that local firms of accountants should ho considered in preference to outside firms. Tho chairman pointed out that mm local auditor was appointed in alternate years, and Mr Corson agreed to submit a, recommendation that the directors appoint two local auditing firms at next annual meeting. Messrs. Watkins, Hunt, Wheeler and Johnston, of Wellington, and Messrs. Morris Duncan and Gyllies, of Auckland, were appointed auditors for tho current year. THANKS TO DIRECTORS' AND STAFF A hearty veto of thanks to the manager and staff for their work during the past year was moved by Mr. W. G. bherrutt. Tho staff, ho said, was a most loyal ami energetic one, and the good balance sheet placed beforo the meeting was largely duo to this fact and to tho ability of tho manager, Mr. A. F. Salmon. Tho vote was seconded warmly b v Mr. If. Kenway, and was carried unanimously. Mr. Salmon, acknowledging tho voto to the staff, stated that among the whole of tiie company’s employees, there was not one who was not "putting his weight” in the effort to overcome the difficulties of the period the company | was passing through. I A vote of thanks to the directors was moved by Mr. W. It. Barker, ami seconded by Mr. T. Corson, the chairman acknowledging the vote with the observation that the directors know that they were working for themselves as well as for the shareholders. He stated that he had had the most loyal co-operation from bis fellow-directors, and he cornpli-

mooted lhem upon the manner in which they had carried out their unretmineratcd duties. The chairman was also accorded the thanks of the shareholders and directors, on the motion of Air. Shernitt, seconded warmly by Mr. E. Al. Monckton. The chairman stated in reply that lie had always found interest and pleasure in the work of the company, and would do so as long as the shareholders desired his services.