FARMERS’ CO-OP. PROFITS REDUCED.

Star (Christchurch), Issue 19176, 16 September 1930, Page 8

FARMERS’ CO-OP. PROFITS REDUCED.

EXISTING CONDITIONS ARE PRINCIPAL CAUSE The forty-ninth annual report of the directors of the New Zealand Farmers’ Co-operative Association of Canterbury, Ltd., to be presented at the annual general meeting of shareholders on September 27, has been issued. The report covers the year ended July 31, 1930, and is as follows: — The gross profit for the year amounted to the sum of £190,743 11s lOd, and the net profit to £19,031 3s 9d, whi -h, with the balance of profit carried forward last year, shows £38,164 3s Id to the credit of the profit and loss account. The diminished gross profit is due partly to reduced commissions on the sales of wool, live stock, etc., owing to greatly reduced prices, and partly to the consequent withdrawal from sale of a proportion of the -usual wool and live stock turnover. The diminished net profit is partly due to the above causes, and partly to the extra provision which it has been deemed advisable to make for possible contingencies in connection with advance accounts because of Ihe seriously decreased returns of some of our clients, and the unknown future of prices of farm products. The turnover and service of our merchandise departments have been well maintained and improved during the year. It is recommended to shareholders that the balance to the credit of the profit and loss account be dealt with as follows : The transfer of a further sum of £20,000 to the special reserve account inaugurated two years ago, which will then stand at £40,000. The transfer of a sum of £SOOO to the reserve against alterations and plant account. The payment of one year’s dividend of 6 per cent on first preferx cnce shares amounting to £9OOO. And that the balance of £1164 3s Id be carried forward. The following directors retire by rotation and are eligible for re-elec-tion:—Mr W. J. Anderson, Hon D. Buddo, Messrs 11. H. Holland, H. 11. Knight and G. Mangels.