INCREASED DEMAND.

Star (Christchurch), Volume LXVI, Issue 20328, 11 June 1934, Page 12

INCREASED DEMAND.

Products of Petrol Company. ASSOCIATED MOTORISTS, LTD. The second annual report of the directors of Associated Motorists Petrol Company, Ltd., covers the year ended March 31, 1934 and is as follows: The demand for the company’s products is steadily increasing. A comprehensive national distributing organisation has been built up and the com--1 pany enjoys the goodwill of the whole of the retail trade. During the year the company has been faced with a revere price war and the directors wish to thank the Government and Parliament for the passing of legislation providing for the control of petrol prices. There is yet much room for improvement of conditions in the trade, both wholesale and retail, but under the circumstances, and in view of the price war, the figures at March 31, 1934, can be considered satisfactory. The year’s working shows, after providing reserve for taxation, a net profit of £5769 10s lOd, and it is proposed to pay to the preference shareholders a dividend of 5 per cent thus absorbing £5459 7s lid. The holders of ordinary shares will not receive a dividend. The figures disclose the strong liquid financial position of the company. The Accounts. The clveC items of the balance-sheet are as fooowfc: LIABIRITJ ES—- £ s. cl. ; Capital paid up 11 1,787 17 6 Moneys held act*, shares not allotted 72 10 0 Bills payable and sundry creditors (including provision for payment of income tax) 75,289 9 6 Insurance reserve 227 11 9 Forfeited shares acct. . . 2,079 13 6 P. and R. appropriation account 2,542 0 7 £194,999 2 10 FIXED ASSETS Freehold ' and leasehold land, buildings, plant (at cost less dep.), Subject to mortgage £5040 to cover cont. liability 53,214 4 5 FROATING ASSETS— Sundry drs. (less reserve for bad and doubtful debts) 13,655 6 5 Stocks on hand and afloat 75,07 22 2 Cash at bank 45,977 13 9 Cash on hand 51 0 8 Bills receivable 325 1 3 Establishment exes. (balance) 333 6 8 Brokerage on shares (balance) 6,3 <0 7 6 £194,999 2 10 The profit and loss account shows a gross profit on trading of £56,318 3s lOd, to which are added transfer fees £4 and interest £52 13s, making £56,374 16s lOd. Salaries, wages, rents, taxes, trade expenses, insurance, brokerage, establisnment and preliminary expenses written off and provision for income tax totalled £48,605 6s. Directors’ fees were £2OOO, and the balance was £12,769 10s, from which £7OOO is added to reserve for taxation, making the balance £5769 10s lOd to be transferred to the appropriation account. ’ , At the annual meeting, last week, the chairman of directors, Mr C. Todd, in moving the adoption of the report and balance-sheet, said that the figures at March 31, 1934, showed the company to be in a strong financial position. The share capital was £114,787 paid up, whilst there are 15,869 shares unallotted, £375 uncalled and calls in arrear amount to £3968. Shares were moving steadily and they expected in a short time would be fully subscribed. Bills payable and sundry creditors. Apart from provision for income tax, this represented almost wholly a shipment of petrol unloading at end of the financial year. Insurance reserve represented sums set apart on small drum coastal shipments. In other words, the company carried its own risk. Total assets showed at £194.973 and fixed assets £53,214. Included in this figure were ocean installations at each of the four main centres and five smaller inland installations with a holding capacity of 4,500.000 gallons. The mortgage was merely a contingent liability. The floating assets were: Book debts £13.655, all quite good; stocks of petrol and oil taken at latest landed cost. £75.072; and cash at bank, £45,977. Full provision had been made for depreciation, bad debts, taxation and miscellaneous.. The only items not represented by tangible assets were balances of establishment expenses and brokerage on shares, totalling £6703 14s 2d. which thev expected to clear off in the near future. The balance appropriation was £5769 10s lOd and the _ directors recommended a dividend of 5. per cent on preference shares absorbing £5489 7s lid, leaving £2BO 2s lid to carry forward.

The report and statement of accounts were adopted, and it was agreed to pay a dividend to preference shareholders of 5 per cent for the year. The election of directors resulted in the re-election of Messrs Ansell, Carey and Passmore.