DRAPERY AND GENERAL IMPORTING COMPANY

Wanganui Chronicle, Volume LXXXII, Issue 19447, 5 November 1925, Page 11

DRAPERY AND GENERAL IMPORTING COMPANY

ANNUAL MEETING. The annual meeting of shareholders in teh Drapery and General Importing Co. of New Zealand was held in the Somerset Lounge, Savoy Buildings, , There were about 25 shareholders pre- ' sent, and Air W. Pels (chairman of j directors) presided. The forty-first yearly report and balance sheet was as follows:—Shareholders were paid the customary discount of 21 per cent, oh their purchases for the first six months of the year in Afay last, and will receive it for the second six months of the year on 30th inst. The net profits for the ■ past year, after making full provision for land and income tax, are £51,040 I 2s Id, which with £22,282 8s 8d brought j forward from last year, show a total Ito the credit of profit and loss account ’of £73,322 10s 9d. On Afay 1 an interim dividend was paid on preference shares at the rate of 6 per cent, per annum for the half-year ending February 20, which absorbed £7500, and leaves £65,822 10s 9d, now available for division. This sum the directors propose to deal with as follows:—To payment of dividend at the rate of 6 per cent, per annum on preference shares for half-year ending Apgust 20, 1925, £7500; to payment of dividend at the rate of 8 per cent, per annum, plus a bonus of 2 per cent, on ordinary shares, £17.781 9s 4d; in addition to reserve fund (which wil then stand at £45,000). £14,885 4s 3d: to balance to be carried forward. £25,655 17s 2d. The dividend (if approved) will be payable on and after October 30, 1925. As provided by the Articles of Association, Messrs E. I. Halsted and I. S. do Beer retire from the directorate on the present occasion, and being eligible, offer themselves for re-election. Your

directors report, with very much regret, the death of Air E. B. Sealy, j your auditor for several years for , Christchurch, Wellington and Wanganui. Prior to his appointment as auditor, Air Sealy held for 20 years the position of secretary at .Christchurch, and by his death the company has lost the services of a most zealous officer. After Air Sealy’s death, Air J. W. K. Lawrence, of Christchurch, Air • E. R. Dymock, of Wellington and Air T. Ballingall, of Wanganui, were ap- ' pointed auditors in those towns respecI lively. They, with Alessrs. Wm. Brown | and Co. Dunedin, retire, and being eligi ible offer themselves for re-election. : In moving the adoption of the report and balance sheet the chairman said: — j“You will see that, though the totals j as per balance sheet, addmp to the subi stantial figure of £666,853, it is £53,563 I less than a year ago, but this contraction is really a consolidation of the company’s finances, which I am sure will have your full approval, in view of the very unsettled trade outlook all over the world. Though half the disi tance of the globe separates us from j the Alother Country, all our activities

in commerce and the production of our great staple articles are affected by the ruling conditions there, and, without wanting to be pessimistic, at present these are not what they should be, and we must try to shape our destinies accordingly and exercise caution in our affairs private and public. Your directors have had this object continually before them in the administration ol the company and in going through the figures with you now, you will be able to judge how far they have been successful in carrying out their aim. The company’s capital, £427,884, is practically the same as last year. Sundry creditors have been reduced from £162,258 to £136,581, or by £25,677. A loan of £48,000 secured by mortgage was paid off thus reducing the company’s outside liabilities by £73,677. ; The reserve fund grew to August 20, ■ • 1924, from £21,149 to £30,115 and the ! directors with your approval propose 1 to add to it now £14,885, practically 50 i per cent., thus bringing it up to ; £45,000. The carry forward which I stood last year at £22,282 will be increased after the suggested allocations to £24,655. The credit to the profit and loss account is £65,823, against last year, £54,611 —an increase of £11,212. “Now, turning to the asset side of the balance sheet, we find stocks at £280,858. When we met last time I mentioned that, having had to absorb the stocks of Herbert, Haynes and the Mutual Stores, the company’s stocks had crept up to £330,906, but that there was every hope of having them reduced to normal figures again in another year. By the unceasing efforts of the directors and managers, impressing all heads of departments with the necessity of bringing down stocks. I am happy to say this was achieved, and ] our stocks to-day are £12,564 less than they were in 1923, when the Dunedin j business was still carried on in tht ! premises in High Street. I take this opportunity of emphasising that stock ; values have been taken on the most j conservative basis. Any lines which I required clearing out were brought down in such a way as to ensure their j immediate sale, and our stocks to-day. therefore, are even cleaner than at balI ance date. Sundry debtors are £87,112. i against last year £88,347. Wharehouscs fixtures and plant stand in the books at £248,692, against £251,722 a year ago. They are down about £3OOO, full provision having been made for : depreciation. New Zealand Government stocks, etc., are £40,328, against ' £39,654. Bills receivable are £lllO against £653. There is a credit balance ! with the National Bank of £8338, against £8457. Cash in hand is £414 • against £668. These last six items have undergone little variation against i a year ago. The profit and loss account shows a credit balance of £284,506, against £268,396, an increase of £16,110. But salaries and expenses . have grown from £206,285 to £211,184. I or by £4899. The net profits for the I past year, after having made full provision for land and income tax, are £73,323, against £62.111 in 1924—an increase of £11,212. The usual 6 per cent, on preference shares was paid on May for the half-year ending February 20, and the directors propose to you now the payment of a dividend of 6 per cent, on preference shares for the half-year to August 20, a dividend at the rate of 8 per cent, per annum, and a bonus of 2 per cent, on ordinary shares. The directors are very pleased to be in a position to put before you I such a satisfactory balance sheet. The . company’s business is well spread through the South and North Islands, , and it cannot help growing with the growth of the Dominion. , “It is the aim of our managers and I their large staffs to give the best service to our customers and the public at large, and I believe this is generally • recognised and appreciated by them. ' The directors testify with pleasure to the whole-hearted co-operation of their managers and staffs in our branches in New Zealand and our buying staff in ' London, and the success of your company is to a great extent due to them. ' On the motion of Mr D. Rodgers the retiring directors (Messrs E. I. Halsted and I. 8. de Beer) were re-cleeted without opposition. The mover spoke in highly complimentary terms of the work carried out by the directors, with whom the shareholders had every reason to be satisfied. Mr R: W. Glendinning, who seconded the motion, congratulated the directors and the staff ’ on the progress made. 1 j The retiring auditors —Messrs J. W.

K. Lawrence (Christchurch), E. R. Dymock (Wellington), T. Ballingall (Wanganui), and William Brown and Co. (Dunedin) were also re-elected.