NET PROFIT OF £4636

Southland Times, Issue 23946, 12 October 1939, Page 3

NET PROFIT OF £4636

PERMANENT BUILDING SOCIETY DIRECTORS’ REPORT FOR YEAR A net profit of £4636/11/- is shown in the accounts of the Permanent Building Society of Invercargill for the year ended September 30. During the year £85,153/1/4 has been advanced, principally on new buildings, making the total net advances now current £313,385/10/- (says the directors’ report). The net profit for the year was £4636/11/- to which has been added the balance forward £1540/14/6, making a total credit of £6177/5/6, which it is proposed to apportion as follows:— £ s d

Dividend 51 per cent, on A, C and D shares 3355 6 1 Tc transfer to general reserves 500 0 0 To transfer to security depreciation reserves 191 16 10 Balance to carry forward 2130 2 7 £6177 5 6 The general reserve account will then stand at £19,500 and the security depreciation reserve at £lOOO, making a total reserve of £20,500. It is with regret that the directors have to record the death of Mr J. S. Baxter who was one of the original directors and who always took a very active interest in the society’s progress. Mr J. D. Campbell was appointed to fill the vacancy. Messrs H. F. Drewe and J. D. Campbell retire in accordance with the rules, and again offer themselves for re-election. TWENTY-FIFTH ANNIVERSARY To mark the twenty-fifth anniversary of the society, a special booket dealing with the history and progress of the society since its inception has been prepared. It says that apart from annually increasing its reserve fund, which has now reached the £20,000 mark, the society chooses its securities carefully. The chief aim has been to conform strictly with good building society .practice in lending its funds, namely, on sound dwellings which are readily realizable. The advances are generally on a 75 per cent, basis of the society’s valuation. The equity in each individual advance is further increased by every monthly repayment made. The following analysis of the balance-sheet for the year ended September 30, 1939, discloses the security which members and depositors hold, and at the same time indicates what can be done by the co-operation of the investor and borrower alike. The directors can, therefore, confidently recommend investments in the society as a sound business proposition, and they look forward to a continuance of the support given during the society’s 25 years of service. Total assets, £335,125. Liabilities—Depositors’ investments, which are a first charge against society’s assets, £204,743. Surplus over deposits, £130,382. Members’ shares paid up £98,930, outstanding advances £5003, trust account £443, sundry creditors £2l, reserves £19,808, balance profit and loss £6177, total £130,382.