Page 12 Advertisements Column 2

Sun (Christchurch), Volume VII, Issue 2031, 18 August 1920, Page 12

A Splendid Opportunity ISSUE OF 10,000 ORDINARY AND SHARES OF £1 EACH (Registered under the Companies Act.) MANUFACTURING ENGINEERS, MAKERS AND IMPORTERS OF FARM MACHINERY. HEAD OFFICE AND WORKS: CARLYLE IMPLEMENT AND MACHINE WORKS, CHRISTCHURCH. Authorised Capital Ordinary Capital, paid up Preference Capital, paid up .. Profits in Reserve £200,000 £68,245 £77,003 £17,G21 DISTRIBUTING BRANCHES: Ashburton Auckland Dunedin Gisborne Hamilton Hastings Masterton New Plymouth Palmerston North Tiiuaru BOARD OF DIRECTORS: GEO. T. BOOTH, Chairman and Managing Director. SIR GEO. CLIFFORD, Bart. (Chairman of Directors, Canterbury Frozen Meat Co.) J. A. PANNETT (Chairman of Directors, N.Z. Farmers' Co operative Association) HUGO FRIEDLANDER. Auckland ,T. W. HARDING, Waipukurau GEO. M. HALL, Sales Manager PETER TROLOVE BROKERS: Any Member of the Associated Stock Exchange of New Zealand. BUSINESS AND ASSETS OF THE COMPANY. Booth, Macdonald and Co., Ltd., are engaged chiefly iu the manufacture and sale of farm machinery. The firm's Ploughs, Harrows, Windmills, etc., are at work on thousands of farms from the North Cape to the Bluff, helping to produce food and clothing for the world. And they are pouring out of the "actory and depots at the rate of thousands per year. The headquarters aro in Cliristchurch, and occupy three acres of land, while the firm has freehold or leasehold premises in ten of the principal distributing cities and towns throughout the Dominion. Booth, Macdonald and Co., Ltd., specialise also iu the supply of machinery for road making and similar purposes, and to that cud have personally and periodically searched the markets of the world for the most improved machines and methods. Its efforts lo serve and assist local governing bodies in their plans for opening up inaccessible country and improving transportation facilities by the construction and maintenance of good roads are appreciated. The following figures show how the assets have increased in the last five Freehold Propertv. £ " .. 21,246 .. 43,424 Plant, Tools, etc £ 16,200 30,149 Stocks. Total Assets. £ £ 61,863 132,946 127,250 276,922 Increase £22,178 Properties are taken at book values, after annual depreciations have been written off. Present market value of properties is several thousands of pounds higher. The same applies to plant. It is maintained in perfect running order at the expense of current revenue. In addition, substantial amounts have been written off annually for depreciation. Booth, Macdonald and Co., Ltd., have the finest plant of its kind in the Dominion, and it is safe to say that it could not be replaced to-day for less than double the amount stated above. Stocks are taken at cost price or less, and in many cases, at considerably less than present market values. The total assets are sufficient to pay off all liabilities (exclusive of capital) three times over. Booth, Macdonald and Co., Ltd., have never missed paying a dividend. During the Company's existence it has paid out £93,405 to shareholders in dividends. GROWTH OF BUSINESS AND PROFITS. The following figures show that the turnover of the business has increased I fivefold since 1900, and that net profits have kept apace:— In 1900 the sales amounted to £29,760 and the net profits to £1,605 j „ 1905 „ „ „ £60,805 „ „ ~ £4,248 ! „ 1910 .„ „ „ £80,812 „ „ „ £6,026 „ 1915 „ „ „ £108,857 „ „ „ £9,033 „ 1919 „ „ „ £156,903 „ „ „ £12,899 PROSPECTS OF COMPANY. Commenting on the issue now offered to the public, Mr Geo. T. Booth, Chairman and Managing Director, writes: — "In referring, during the War, to the prospects of this Company's business, especially in the period subsequent to the cessation of hostilities, I said: 'Rapid . as has been the development of this Company's business in the past, there will be greater opportunities than ever in the near future. Now is the time to prepare for the expansion which will undoubtedly follow the War. Aud it is up to New Zealand to see that her industries and commerce are adequately supported by local capital, and the profits retained iu the country to swell our own national wealth.' "The War has happily come to an end, and wo are experiencing the expansion that I anticipated. Never have the prospects ahead of New Zealand been so bright. There is an absolutely insatiable demand for almost all our products, at prices that would have seemed incredible a few years ago. And this demand is not a flash in the pan. There will be no considerable falling-off until the world, now starving, not only for food and clothing, but for practically all kinds of goods, materials and services, is adequately fed and clothed aud provided for. And fliat time is too far distant for calculation. Production still lags lamentably behind requirements, and there can be no appreciable alleviation of existiw conditions until supply catches up with demand and the world's wants are reasonably satisfied. "To that end every farm should be worked to its utmost capacity, every factory should increase its output, every ship should be driven faster. '' We arc trying to do our share. We are employing more men aud constantly installing new. machinery of the most improved type for rapid and economical j production. And our efforts are being rewarded by a flow of orders that more than taxes our present capacity. We want to do more and still more. But expansion involves more and more capital. The weekly wages bill is much higher : than it was. A given quantity of raw materials, which it is necessary to carry • u stock, costs from twice to four times what it did before the War. Every I increase in turnover involves the use of additional capital." REASONS FOR INCREASE OF CAPITAL. In addition to the increased amount required as a result of larger turnover another important development requires further capital. In view of the very great demand for agricultural machinery in the northern portions of the Dominion, the Company has decided to establish a factory in Auckland for the j manufacture of its products, and has already secured a suitable area of land for I the purpose. The erection of buildings and plant will be proceeded with as i rapidly as possible, and a considerably enhanced demand will no doubt result, ! while the saving in freights will be very great. Moreover, the difficulties of shipping from the Southern factory will be obviated. TERMS OF ISSUE. The shares are of two classes—Preference aud Ordinary. ! The former are fully preferred, both as to dividend and capital, and arc entitled jto 6 per cent, per annum, paid half-yearly in March and September. Dividends on I the latter are paid in March of eaeh year. Under IS'ew Zealand law both classes of dividend are free of Income Tax. I Both classes of shares arc offered at par, and will stand on the same footing respectively as existing share capital of their class, and dividends will accrue from of 10 per cent, on the nominal value of a share on applicative in one sum or in four equal instalments at intervals MACDONALD & CO., LTD. above-named Company upon the terms of the Company's Prospectus' i day of June, 1920, and I hereby agree to accept the same or any !■ that may be allotted to me, anil 1 herewith hand you Cue sum of ...., being a deposit of Two Shillings a Share on . .' above-named Company and to pay the balance of ISs. per share as ic said Prospectus, aud 1 authorise you to register me as the holder ile if Mr., Mrs., or Mi