TRADERS’ FINANCE CORF.

Sun (Auckland), Volume II, Issue 531, 7 December 1928, Page 12

TRADERS’ FINANCE CORF.

WRITING DOWN CAPITAL DIVIDENDS IN SIGHT r Competition bringing about a reduction in rates resulted in a slight falling off in the net profits, states the annual report of the Traders’ Finance Corporation, Ltd., for the year ended September 30, 1928. Net returns over the period amounted to £11,462, compared with £12,576 for the year ended September, 1927. The report states that the accounts referred to at the date of the last annual meeting have not yet been finalised, and it is estimated that by writing off £9,000 this year, provision will have been made for contingent losses. This has accordingly been done. The directors recommend the payment of a dividend at the rate of 7 per cent, on preference shares, leaving £293 to be carried forward. Preliminary expenses are stated to be the most unsatisfactory item remaining on the balance sheet. In the ordinary course of events these would have been eliminated this year. Under the circumstances the directors recommend that the ordinary shares be written down 2s Od a share. This, if approved by the shareholders, it is contended will enable payment on all shares to be made next year, and ensure the accumulation of reserves. A resolution relative to the •writing down of capital will be placed before shareholders at the conclusion of the annual meeting, which is scheduled for December 14. ASSETS AND LIABILITIES The nominal capital of the company is £300,000, being 50,000 preference shares at £l, and 250,000 ordinary shares at £l. The issued capital comprises 33,577 preference shares fully paid, £33,577; 10,000 ordinary shares fully paid, £10,000; 129,738 ordinary shares called up to 3 os, £64,869; and 50 ordinary shares called up to 7s 6d, £lB 15s, making a paid-up capital of £108,464 15s, compared with £105,514 15s last year. Among the liabilities are:—Deposits, £10,050, compared with £8,814 last year; National Bank of New Zealand, £32,066, compared with £17,174. Among the assets appears a new item, farm property, stock and implements, £10,085, an explanation of which will probably be given at the annual meeting on December 14. Advances, less unearned interest, total £128,421, compared with £123,389. The amount of formation expenses, mentioned by the directors, is £14,279. The writing down of all ordinary shares by 2s 6d each would produce £17,473 to discharge this item from the balance sheet. The company’s net profits in the past four years have been as f0110w:—1925, £4,880; 1926, £13,058; 1927, £576 (after writing off £12,000); 1928, £1,652 (after writing off £9,900). Dividends have been paid as follows: —Ordinary shares: 1925, 7 per cent.; 1926, 7 per cent., 1927, 3J per cent.; preference shares, 7 per cent, in each year, including 1928. The retiring directors, Messrs. Robert Burns and J. A. Gillett, offer themselves for re-election.

BUTTER AND CHEESE

j Merchants report receipt of overseas j cables as follow: i Norden and Co., from their London i principals, Andrew Clement and Sons, : Ltd., under date December 6: —“New Zeai land butter, salted, to 180 s (equb/Li- ; lent to Is 5.31 dto Is 5.52 d a lb, f.o.b. j New Zealand ports); unsalted, 1965; mar- | ket firm. Cheese, white, 97s (equivalent to 5.75 d a lb f.otb. New Zealand ports); I coloured, 9Ss; market steady.”