COMPANY AFFAIRS

Wanganui Chronicle, Volume 79, Issue 244, 15 October 1936, Page 11

COMPANY AFFAIRS

ROTOITI TIMBER CO. PREFERENCE ARREARS PAID. The directors of the Rotoiti Timber Company, Ltd., in their sixteenth annual report for the period ended June 30, 1936, state that the trading results show a net profit of £6338 Ils 9d, the turnover for the period being £37,672 15s Bd—an increase of £9826 7s 7d over last year, the demand being largely due to building activity. Provision has been made for bush cut out to date and the cost of opening up in the two new areas brought into operation during the year. The scheme of capital reduction passed by shareholders was sanctioned by the court on April 2 last, and the amount made available, £44,600, has been used, in accordance with the proposals submitted to the shareholders, as follows:—Accumulated loss written off, £19,922 Is lid; book value of fixed assets reduced by £24,677 18s Id. This substantial reduction of the assets has rendered unnecessary the charging of depreciation in the profit and loss account for the year. The liability for £llOO for unpaid purchase money appearing in last year’s balance-sheet has been paid during the financial year, and another mortgage of £lOOO has been paid since balance date. The prospects of the company will necessarily be affected by the increased costs due to the recent industrial legislation, but this will be offset to some extent by the increase in prices. Out of the net profit of £6338 Ils 9d, the preference shareholders have been paid the dividends outstanding for the seven years to June 30, 1935, at the agreed lower rate of 5 per cent. This payment amounted to £l2BO 13s, leaving available £5057 18s 9d. The directors recommend that the following dividends be paid for the year: On preference shares at the rate of £6.4 per cent, per annum (being 8 per cent., the preference rate, less the statutory 20 per cent.), £234 3s 9d; on ordinary shares at the rate of 3 per cent, per annum, £1338; and that the balance of £3485 15s be carried forward. The retiring directors, Messrs. C. G. White and R. A. Wilson, offer themselves for re-election.