FINANCE AND COMMERCE

Taranaki Daily News, 2 August 1930, Page 16

FINANCE AND COMMERCE

FARMERS’ FERTILISER WORKS. LAST INTANGIBLE ASSETS GO. , YEAR'S SATISFACTORY WORKING. (By Wire—Special Reporter.) Auckland, Last Night. There was a good attendance at the annual meeting of shareholders in the New Zealand Farmers’ Fertiliser Co. today". In moving the adoption of the annual report and balance-sheet, the chairman of directors, Mr. A. A. Roes, congratulated the shareholders on the results' of the year's operations. The gross profit amounted to £99,321 4s fid and the profit and .loss charges to £08,346 Os sd, leaving a net profit of £30.975 4s Id. - “The net result," said Mr. Ross, “is that we are able to wipe oft the last of the intangible assets from the bal-ance-sheet, pay’ the usual dividend of 8 per cent, per annum for fourteen months, aud carry forward approximately the same amount as last year. ’ “One item in the balance-sheet which calls for special comment is the bank overdraft, which stands at an unusually high figure. Provision for raw materials v,as made in anticipation of an increase in demand. That anticipation was not realised with the result that stocks accumulated' and the overdraft was higher in consequence. The position is now rapidly righting itself. ■ The output has been well maintained all through the autumn and up to the present time so -with the reduction iii stocks the overdraft is ..steadily coming down to normal. Even on the balancesheet figures the position was not oite to give cause for concern. “Takina all factors into consideration the position may" be summarised as follows:-- Open accounts, £25,057 13s lid; sundry creditors, £14,629 ss; Bank of New Zealand, £197,098 8s; total, £236,785 IGs did. Against this liability must be set the following liquid assets: Stock, £97,810 17s 4d; sundry debtors, £3B ? - 301 10s 4d; total, £136,112 7s Bd. This leaves a balance of liabilities of £lOO,G 73 Os 3d. I am convinced that by the close of next financial year the bank liability .will be a very different ficure from that appearing cm the balancesheet as at May 31.. “With the demand that arose for finely-ground North African phosphate, the directors were confronted with the necessity of installing extra grinding plant at Auckland and New Plymouth. This entailed considerable capital expenditure, but the addition of these new grinding units will mean economy in labour "costs bv overcoming the necessity for working extra shifts. There will be no necessity for capital expenditure of any importance during tho current year. “The question of increasing the paidup capital of the company by the issue of additional shares was seriously considered by the directors, and it- was intended that this should be done. It is now felt, however, that the time is not opportune and that it will have to stand over for the present.’’ Because of the present uncertain economic conditions. Mr. Connett said, he had heard a few farmers say they would reduce the quantities of top-dres-si tm'they had been accustomed to uso That would be a false step. That was x one thing the farmer could not afford to do. Messrs. A. A. Ross, S. Irwin Crookes and M. Harding, the . retiring yiirectots, were re-elected. Mr. J. A. Duncan was re-appointed auditor at -the-same fee. Mr. Ross said there was one point he would like to make clear—the rate of dividend was 8 per cent, per annum and as the company" had had the use* of the shareholders’- money for 14 months they would receive correspond- | ingly more than the figure for 12 months. ,— z

CANTERBURY PRODUCE MARKET. ■ SLIGHT RELAPSE IN POTATOES. By Telegraph.—Press Association. Christchurch, Last Night. The potato market, which received a fillip early in the week, has suffered a slight relapse to-day. Tubers for prompt delivery are quoted at from £4 15s to £4 17s 6d a ton f.0.b., sacks in, for August delivery at £5 a ton and for September at' £5. 2s Gd. Nearly all the activity of the market during tlie past Yew weeks has been in "paper” potatoes.' There have been very few potatoes bought from the farmers for August. The grower is a very firm holder and.adopts an indifferent attitude towards the market quotations and inquiries. There .is a fair inquiry from Auckland and jother parts at present but it is much,;helbw the volume usual at this period of the year. There lias been.a fairly keen consumptive demand for. oats during the past few days. Southern quotations are 3s lOd f.0.b., sacks in, for A Gartons and 3s 9d for. B’s. Local B Gartons have been sold at 4s: f.0.b., sacks in, and. A’s ! at 4s Id. Chaff for prompt delivery has been sold at £7 to £7 2s Gd f.0.b., sacks in, equivalent to £5 7s Gd to £5 19s a ton on trucks. ■ -. v A few odd lines of onions are-.being offered and best quality lines.can command up to £4 on trucks. There is . still a little business being done in next season’s wheat on the basis of 5s 5d to 5s Gd on trucks for Tuscan according to stations. Fowl wheat is firm with the inquiry good at Gs to 6s Id f.0.b.;. sacks in.

Small seeds show no change and business is duller than nt any. corresponding period for some years. I i ■ SHAREMARKET SALES. r I Auckland, August I.—S’haremarket sales: , Commercial Bank of Australia, 21s 4d; Bank of New Zealand, 565; New Zealand Insurance, 445, 455; Pukemiro Collieries, 60s; Renown, new pref., 2s 8d; New Zealand Breweries, 49s 9d; Colonial Sugar, £37 12s fid; Electrolytic. .Zinc, pref; (late sale Thursday), 245; H.M. Arcade Theatre, 30s; Kempthorne Prosser, G2s fid; Mount Lyell, rights. Is 6d. . ' ‘ Christchurch, August I.—Sales on Exchange: Commercial Bank of Austraja. (cam. div.), 21s 3d; Bank of Ne\. South Wales, £36 15s; Staples’ Brewery, 45s Tooth's Brewery, 28s lOd; Mt. Lyell, 23s Cd; Mahakipawa, 21d. Sales reported: New Zealand Government 54 per cent, bonds, 1938. £99 12s 6d; Commercial Bank of Australia (cum. div.), 21s 4d; New Zealand Breweries, 49s lid (two parcels); Tooth’s Brewery, 28s lOd; Union Bank, £lO 16s. PIGS AND POULTRY SALES'. Messrs. Newton King, Ltd., report a good yarding at their Haymarket sales. Baconerg made up to G7s Gd, other prices ■ranging ae follow: Light porkers 40s, large stores in good condition 35s to 375; good slips Site, good weaners 255, others 18s‘ to 21s. Messrs. -Webster Bros, report egg sales during the week at the following prices: Ducks Is 10d, mixed 2s to 2s lid, medium lines 2s to 2s lid, best hens 2s 2d. Messrs. L. A. Nolan and Co. report poultry sales-at the following rates: Hens 2s lid to. 3s 4d, pullets 3s Sd to 7s, cockerels 2s 7d to 4s 3d. ducks 3s to 3s sd, chickens 3d to 4d, bantams ■ lOd to Is 4d. turkeys 8s Gd to 10s„