£2,000,000 LOSS IN SIX YEARS.

Star (Christchurch), Issue 18015, 27 November 1926, Page 8

£2,000,000 LOSS IN SIX YEARS.

WOLSELEY MOTORS, LTD., COMPULSORILY WOUND UP.

(Special to the “ Star.”) LONDON, September 29. Sir Gilbert Garnsey (of Messrs Price, Waterhouse and Co., chartered accountants), presiding yesterday at a meeting of the 6£ per cent debentureholders in Wolseley Motors, Ltd., said that since 1920 the losses each year ran into six figures. On the basis of book values, the whole of the ordinary share capital of £1,000,000 had been lost, and a third of the preference share capital of £3,000,000. At present assets totalled £2,332,000. and liabilities are estimated at £1,687,971. It was proposed, said the chairman, to write off the whole of the 1,000,000 ordinary shares held by Vickers, Ltd., and that firm was prepared to hand over the entire administration of the company to a new board of directors, on which the debenture stockholders would be asked to appoint representatives. Vickers, Ltd., were prepared to pay off the bank overdraft of £454,000, and to provide a substantial sum in exchange for new ordinary shares, or other security, in the reconstructed company. He therefore moved that the holders of the first mortgage debenture stock secured by trustees between the company and the B.S.T. (Birmingham, Ltd.) should agree to defer the rights to payments due to them till January 1, 1927. Mr Gilbert Johnstone said that they were amazed to understand how a company with such splendid premises and such an able staff had succeeded in losing so much money. Tie seconded the resolution. Mr W. Henman, of Birmingham, ascribed the whole source of the trouble to bad management. The resolution was passed with four dissentients. Cables last week stated that Mr Justice Eve granted an order for the compulsory winding up of the company.