Page 12 Advertisements Column 3

Sun (Auckland), Volume II, Issue 388, 23 June 1928, Page 12

A Copy of this Prospect is has been filed with the Registrar of - m on the 12th day of Jane. 192# < -™r.n,„ „ ABRIDGED PROSPECTUS OF The Auckland Laundry, Ltd CAPITAL f 30.000: 8 I DEBENTURE STOCK, £25,000 lON ON THE FOLLOWING TERMS:— ’ roß allotment, or THE £25.000 of 8' SUBSCRIPTION 2 6 in the £1 2/6 in the £1 pplication and the balance i application and 2/6 on allotment," thiTb,? 1 quarterly payments each of 5/- in the *>****• 6,000 fully paid Shares will be allotted to the Shareholders o f"”th Steam Laundry, Limited, in part payment for its plant stated hereinafter, free from all liabilities. and bD «» These are classed as Deferred Ordinary Shares and ah»ii dividend in any year until a divider,*entitls Ito receive a dividend in any year until a dividend n* 0 * * annum shall have been paid on the Ordinary Shares for that v*» S ~ DINARY SHARES ARE NOW OFFERED FOR PUBLIC SUSScklp-j allotment, the balance ot more than 5 ■ «,.v and 2, 17.400 ORDINARY ON THE FOLLOWING TERMS: 2/6 per Share on applicatii per Share being: payable in calls of not more than 5 - vals of not less than three months. n Investors desiring to pay their Shares up fully on allotment so, when the payment in advance of 15 - per Share will entitle 43 receive interest on that amount at 6CV per annum until the r ** due dates of the calls. 1.600 Ordinary Shares have been subs< ribed ir. the Memorandum of Associate Each applicant for Debenture Stock shall be entitled to apply for in the proportion of 3 Shares for every £5 of Stock. ** Siam Application may be made for either Shares or Debentures only, but in the over-subscription, applications in the above proportion will receive priority over ett * DIRECTORS. TRUSTEE FOR THE EEBENTTTftr FREDERICK GRIMWADE BASKETT. of TTfkT.TYin>o Auckland, Director and Secretary of Winstone. Limited. JOHN ERNEST CLOSE, of Auckland. Farmer. FRANK MARTIN WINSTONE, of Auckland, Merchant. JOHN McGREGOR. of Auckland, Director of McGregor and Montgoraer; HOLDERS. GEORGE ARTHUR GRIBBIN of *„ v Solicitor. SOLICITORS. NICHOLSON. GRIBBIN. BOGBMtt* NICHOLSON. Imperial * Ltd. Street, Auckland. HAWTYN STANLEY HAEKISON. of Auckland, Company Director (Managing INTERIM SECRETARY. Director). MALCOLM GORDON Me ARTHUR. Auckland, Solicitor. BANKERS. THE BANK OF NEW ZEALAND. AUDITOR. (To be Appointed.) of NORMAN ALEXANDER Dpthy, F.r.A.X.Z.. 41 Short land Str." land. BROKERS. STEWART CRAIG. LTD _ Street, Auckland. P.O. Box 48 : Sbertlm No Promoters’ Shares have been or will be issued. No payment is being mad, ... goodwill. No liabilities are being taken over. No Cash or other consideration has been or will pe paid to any person to induce h s to become a Director or Shareholder of the Company. THE OBJECTS OF THE COMPANY. The objects are: — , _ . , , , _ 1. To acquire the business now carried on by the Auckland Steam Laundry, together with the plant as herein mentioned belonging to it, for the price of £IO.OOO, the terms of an agreement made between the vendor company and G. A. Gribbin as xxuit* for the new Company. The agreement provides (inter alia) that the purchase pricey be satisfied by the payment of £4,000 in cash and the allotment of 6,000 Deferred Slur* credited as fully paid-up. 2. To purchase at the price of £2,600 a freehold site having an area of approt mately IS acres, situated at Surrey Crescent. Grey Lynn, and having a frontage of lss feet, with a total depth of 268 feet. 3. To erect on the new site proposed to be purchased n modern fireproof hpjH lß|C containing 30,000 square feet of space on on. door. Detailed plans have already b*f: prepared, and the architect’s estimate of cost is £15,000. shing. drying, cleaning and pre*s from the manufacturers’ agents, > O , ill be transferred to the new t —miirn -vTo purchase and instal additional plant for ing. Firm quotations have already been obtai total the sum of £12,000. The present plant use in addition to the further installation. 5. Tc provide modern delivery vans, ii collection taC delivery service in all parts of Auckland. MODERN LAUNDRY SERVICE. One of the chief objects of the Company will be to cater for the full requirement*.family washing. This will include the collection of the entire household washing and fci return washed, ironed and aired ready for immediate use. It will be charged for by of the finished and dried articles, at a price bringing it within the reach of every honV hold. This will eliminate home ironing and drying for every class of material. It has been proved to the satisfaction of the Directors that there is very great «op* for such a service, which is now being demanded on nil sides—a demand which cann: be met by any existing Auckland laundry. THE SUCCESS OF THE EXISTING BUSINESS. The undertaking which was carried on by the Auckland Steam Laundry. Limited, v;originallv established more than 25 years ago. and has heon conducted by the pret-r----management for the past 5 years, the annual turnover being approximately £15,000, aai the profits earned having been satisfactory. In fact, the net assets of the vendor Company are more than twice the amou: its paid-up capital. The present site in Belgium Street has become both too small and too valuable for factory purposes, while the existing facilities have become insufficient to cope with tk« business which is already offering, without the assistance of either advertising or cm vassing. ASSETS OF THE COMPANY. Upon completion of the present programme the assets of the Company will be *< follows :—• Land ------ £2,600 Buildings £15.000 New Plant £12,000 Present Plant ..... £IO,OOO £39.600 It will thus be seen that the assets provide a very ample margin for the Debenture holders. The total capital outlay under the above headings will amount to approximately £30,000, the net balance of the present issue being utilised to provide further werkin* capital. The effect of the erection of the new premises atid the installation of tb* uev plant will be that the turnover can be greatly increased with relatively small extension of the staff employed. SECURITY AND TERMS OF DEBENTURES. The Debenture Stock will be issued in any multiple of £lO, with a minimum of £BO. and will constitute a floating charge on the whole of the assets and undertaking of th» Company, subject to the terms of a Deed of Trust to be executed in favour of GsMft Arthur Gribbin as trustee for the Debenture-holders. Interest at B r /c per annum will be paid without any deduction, but subject to ordinary income tax at the rate at which the income of the holder is taxable, if at all. It will b« paid half-yearly, on the first day of each of the months of January and July. The Debenture Stock will be repayable 15 years from the 2nd day of July, 1928. pre vided that the Company will be entitled to redeem all or any of such Stock on the 2nd day of July, 1933, or the 2nd day of July, 1938, if it shall have given 3 months’ preTioni notice in writing of such intention to the holders. Stock will be issued either in bearer bonds or registered in the holder’s name npor request. It may be converted from one form to the other. THE PRESENT PLANT. The existing plant and machinery is valued at £10,116 by Mr. G. K. Ban sard, of Messrs. J. J. Niven & Co., Ltd., who certifies that it is in good order and condition. It will be removed to the new premises, after the completion of the further installation tb*rf. THE SUCCESS OF LAUNDRY COMPANIES. It is common knowledge that the laundry business is a very profitable one. and tb* relatively few companies in New Zealand which are adequately equipped to bandl* * large turnover and to give full and efficient service are in an infinitely stronger position than that of their lesser competitors. A well-known Auckland laundry company recently made a bonus issue of one shan foi every five. A large Wellington laundry firm, which had an original capital of only £12,000 * 1911, now has a capital of £36,000, and it is stated that £9,000 of its Reserves wire capitalised in 1923. It is known that one such company carrying on business in a city very much smaller than Auckland has an annual turnover of approximately £75,000. The dividends being paid by these companies are as high as 15 9£, and their Star* are unobtainable by the general investor. THE PROFITS OF THE PRESENT COMPANY. Assuming that the turnover of the present Company in its first year is as low »• £20,000, a net profit thereon of 20which experience has proved to be a conservafare figure in these cases, will provide £4,000. This net profit of £4,000 will cover the debenture interest twice over, and, afto allowing for income tax, will largely exceed the amount required for a dividend of i 'r. on the 19,000 Ordinary Shares now being issued. The foregoing estimate is regarded as the minimum which may be anticipated fro» the operation of the extended business, while there is no reason to doubt that it will w doubled within a comparatively short period. At present the business is unable to accept further work after Tuesday in weeks, and the reduction of hand work and the elimination of overtime which will ttw* from the employment of further plant will largely increase the margin of net profit. THE EXPANSION OF THE PRESENT BUSINESS. In view of the above parallel cases and of the present situation of the Auckland Steam Laundry, Limited, it is beyond question that the move which is now being is not only justified but is demanded by the circumstances. Business which i* being turned away through lack of facilities, in addition to those classes of work wbicb cannot be dealt with by the existing plant, is in itself sufficient to increase the Company* turnover by nearly 50 9£, while the further new connections which must be created by w active campaign of publicity and the provision of service such as does not yet exirt * Auckland will contribute to double the turnover in the near future. The present works will be leased by the new Company for £ls per week until * new premises are taken over in running order. It is estimated that the new premises will be ready for occupation in 6 months frt» the incorporation of the present Company, and there will be no period during which normal activities of the business will be suspended. CONTRACTS. The following are the material Contracts to be taken over by the Company: (!)• Agreement to purchase certain assets of the Auckland Steam Laundry, at the price of £IO,OOO. (2) Agreement to employ S. H. Harrison at a salary of £SOO per annum. (3) Agreement to employ M. T. Harrison at a salary of £SOO per annum. (4) Agreement with G. Stewart Craig, Ltd., providing for a brokerage of syc Shares and Stock allotted, exclusive of the Vendors’ Shares and Direct Shares. (5) Draft Deed of Trust with G. A. Gribbin. GENERAL. The minimum subscription upon which the Directors may proceed to allot®*® ** 10,000 Shares, inclusive of the Shares which have been subscribed for in the Memorao of Association of the Company, but exclusive of Vendors’ Shares; but the Director* not go to Allotment until a total of £20,000 in Stock and Shares has been subscribed-. The qualification of a Director is 200 Shares, and the Articles provide that the tors shall be paid such remuneration as the Company in General Meeting shall from » to time determine. The Provisional Directors are the promoters of the Company. _ .« preliminary expenses of and incidental to the promotion of the rn ? an v.*jj4 estimated not to exceed £SOO, exclusive of brokerage and stamp duty, and will b® by the Company. FORM OF APPLICATION FOR SHARES. To the Provisional Directors. THE AUCKLAND LAUNDRY, LIMITED (Intended to be registered under “The Companies Act, 1908”) C/o. G. Stewart Craig, Ltd., 41 Shortland Street, Auckland. (Box 487). I HEREBY REQUEST you to allot me 4h*res i» named Company, upon the terms of the "Prospectus dated “the 12th day of J | xne ’A7*d I HEREBY AGREE to accept the same or any lesser number that may b® to me. I enclose herewith the sum of £ being the am®** 5 of 2/6 per share, payable on application - ■- and I agree to pay a further sum of 2/6 per share on allotment and the *» l * D calls of not more than 5/- each at intervals of not less than 3 months. interiet *or I Wish to pay the balance of 17/6 per share on allotment and to rec«l« thereon at 6% per annnm, until the respective due dates of the calls. Name in full * (Mr., Mrs., or Miss) —— Date 1928 Occupation - Address —— apply to'your appiw»B«»-