Page 2 Advertisements Column 1

Timaru Herald, Issue 170296, 14 August 1920, Page 2

A Splendid Opportunity ISSUE OF SO,OOO ORDINARY AND SO,OOO % per cent Cumulative Preference SHARES OF £1 EACH Isici 'i &U & Co. Ltd. (Registered under The Companies Act.) MANUFACTURING ENGINEERS, ?/!AKERS AND IMPORTERS OF FARM MACHINERY. HEAD OFFICE AND WORKS: Carlyle Implement and Machine Works, Ckistdardi Authorised Capital £200,000 Ordinary Capital, paid up... £68,000 Preference Capital, paid £77,003 Profits .in "Reserve ....*. . ... ... ... £17,621 , _ DISTRIBUTING BRANCHES: A.shburton. ...Auckland Dunedin " Gisborne Timaru Hastings . Masterton ■ New Plymouth. Palmerston North Hamilton . BOARD OF DIRECTORS: ' "GEO. T. BOOTH, Gliaii-man and Director. SIR GEO. CLIFFORD, Bart. (Chairman of Directors, Canterbury Frozen ; Mdat Co.) . r ■ . , J. A. PANNETT.(Chairman-of Directors, N.Z. - Farmers' Co-operative Assn.) HUGO Auckland.. J. W. HARDING, Waipukurau. GEO. M. HALLi Manager ' _ . PETER TROLOVE . "'JV BROKERS: ' .•» Any Member of the Associated Stock Exchanges of New Zealand. BUSINESS AND ASSETS OF THE COMPANY. Boo.th, Macdonald and Co., Ltd, are engaged chiefly in the manufacture and sale 'of farm machinery. ■ The firm's Ploughs, Harrows, Windmills, otc., "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 factory and depots at the rate of thousands per year. . The headquarters are in Christchurch, and occupy threo acres of land, while the firm has freehold or leaseliold premises in ten of the' principal distributing cities and towns Bootth, Macdonald and Co., Ltd., specialise also in the.supply of machinery for road making and similar purposes, and to that ehd-have personally and periodically searched the markets of the world for the most improved machines and methods. Its efforts to serve and assist bodies in their plans for opening uj> inaooessible country and improving'^ansgprtation' facilities by the construction and maintenance ol' good rqjids.appreciated. In addition, the firm controls the sole New Zealand distributing agfeiicy for a number of widely-sold machinery and other, lines. ' The following figures show how the assets have increased in the last five years:— ~.,.'1 Freehold,,';: ...Plant, 'f"' Property;, ,!V - Tools, etc. Stocks. Total Assets. 1914 .w 21,246 16.200 61,863 132.946 •; 1919 " "... 43,424 30,149 127,250 276,922 Increase £22,178 £13,949 £65,387 £143,976 .. 4 • 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 cif its'kind in the Dominion, and it is safe to say that it could not bo replaced to-day for less than double the amount stated, aoove. _ ' ? 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. •..:',i . >■;; . Booth, Macdonald-and Co., Ltd, have never rmissei' .payrng a dividend. During the Company's existence it has paid out £93,406 to shareholders in dividends.. GROWTH OF BUSINESS AND PROFITS. Tho following figures show that the turnover of. the'business lias increased fivefold since 1900, and that net profits have kept pace::— In 1900 the sales amounted to £29,760 and the net profits to £1>605 jj 1905 )) )i i, £69,805 ~ ~ £4,248 „ 1910 ~ )i ,> £80,812 ~ ~ £6*026 ~ 1915 ~ ~ ~ £108j857 ( , ~ ~ 31 £9,033 si 1919 ii ■ ,»• i) £158,903 ~ ~ £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 lias been the development of this Company's business in the past, there will, be greater oppotumties than ever in the near future. Now is the time to, prepare for'the expansion which will undoubtedly foilow the' war. And it is up to New Zealand to see that Her industries and commerce al-e adequately supported by local capital, and the profits retained in the country ,to swell our own national wealth.' "The.,,war has happily come to an end, and we 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 deihalld not a flash in the pan. There will be no considerable fallingoff 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 afid proyided. for; And that time is too far distant for calculation Production behind requirements, and there can be ho appi-fKMable existlhg.rcbhditio'ris 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 are trying to do our share. \Ve-are employing more men and constantly installing new machinery of the most improved type for rapid/and economical production. And our effors are beingi rewarded by a flow of orers that more than .taxes our present capacity. We want to do more and still more. arid' more capital. The weekly wages bill is Tpuch^iT^erj£han'.''it^wasiv.:.' A gsyi&"4uantityi»fc^aw^maifceritis- I.which it is necessary .to (B&^'Jsg3S I lstSck;a. ! sSßsi:s I'rbm'.'twi'qe:, to'ifour, -times wha't'lt- did before th'o;.warv Every increase in turnover' involves the use of additional capital." 'i ■. ( . ' REASONS FOR INCREASE OF-CAPIITAL. Ini.aMition to the increased amount required as a result of larger' turnover another-important) development requires further .capital. In view of the very great'deiii'aad ..for mgriculttiral' machinery, in the northern- portions of the Dominion, the Company;has decided toestabhsh a factory in Auckland for the manufacture of its and has already for the purpose.; The erectionof 'the' builtlitifelf--with as rapidly as possible, and_a considerably enhanced demand will no doubt result, while the saving in freights will be Very great. Moreover the difficultibs of shipping from the ISbuthern factory will be obviated. TERMS OF ISSUE. i The shares are of two classes—Preference and Ordinary. The former are fully preferred, both as to dividend and capital, and are entitled to 6 .-per. cent.-per annum,; paid half-yearly in March and September Dividends on the latter are paid in March of each year. Under New Zoalnnri law both classes of dividend are free cf Income Tax! , • Botlv classes, of shares ate offered ah par, and will stand on the same footing respectively as existing;share capital of their class, and dividends will accrue from dates on which-payments are received.. - , . Subject to a payment of 10 per cent.- on"the -nominal valuSbf a share* on application, payments may be made in one som or in four equal instalments' at intervals of three months from the date of. allotment. ' , Applications will be dealt'with in order of their receipt. .. '< &&&s&*■ Prosneptus and Forma of Application may be obtained from the H«2ad; Office ~of the Company at Christchurch or from any of its branches. To . the' Directors df BOOTH, 'MACDO NALD AND CO., LTD. "'"Gentlemen.— • I hereby- request you to Fallot .to.me . ' ' . . .. Ordinary - Preference Shares in the above-named' Company upon' the-terms in the Ooinpany's Prospectus > dated the" 15th day of June, 1920, and I hereby agree to-aecept.the saraf or any smaller number that may be allotted to me, and I herewith hand you the sum of , 'Oeing a deposit of Two Shillings a ShfuSf?! on Shares in the , above-named Company, and ■jgtwSlto pay,:,th4, ~b&lanc&.< o f ..18si,'per,^.Sharer-ijs; provided;''by?,: the pßoiftjss'and I authorise-you to-register m e as *the'-holder of the said Shares. Name in Full. ■AddreSs .... Description f Date.......... Signaturo... (Please-state-if Mr.j Mrs.,-or:-Miss)