TURNOVER DECLINES

Wanganui Chronicle, Volume 80, Issue 248, 19 October 1937, Page 11

TURNOVER DECLINES

ROTOITI TIMBER CO. INCREASE IN DIVIDEND. Net profits are shown at £2958 in the annual accounts of the Rotoiti Timber Company for the year ended June 30, less than half last year’s figure of £6338. Turnover for the year was £34,918, showing a decline of £2755. The directors of the company recommend a dividend of 4 per cent, on ordinary shares, compared with 3 per cent, last year. This will take £1784 out of the £6044 available for distribution, and after the preferential dividend of 6 2-5 per cent., requiring £234, has been paid, a balance of £4025 remains to be carried forward. The directors state in their report that the building trade was quieter than was anticipated, and the decrease in profits is largely a reflection of the higher working costs due to increased wages and the adoption of the 40-hour week. In addition, depreciation of £1255 10s 3d was provided for this year, whereas in the previous year's accounts this item was covered by the reduction of value of the assets under the capital reduction scheme. The mortgage liabilityin the balance-sheet has been reduced by £lOOO cash payment, and £3OO has oeen paid off the debentures.

A tractor has been purchased for bush working and is proving very satisfactory. As the working of the Waione block has become necessary m order to’comply with the terms of J 6. !?'’., the directors considered that the best and cheapest method of working this and surrounding area would be to eree a mill adjacent to the bush and convey the timber by road to the Ngongotaha yard. The new mill is nearing completion and nhen ready, timber will be delivered < t Ngongotaha at a cheaper cost than at present. The Mourea mill will continue to take the timber from the areas adjacent to Lake Rotoiti. Several areas of bush adjoining the company’s present blocks have been secured on favourable terms. Shareholders were invited to take up the balance of the preference share issue, states the report, but the results has been disappointing. In the meantime any additoinal finance required for securing new areas and erection of the new mill is being obtained from the company’s bankers. The building trade is at present quiet, but the scarcity of houses that exists throughout the Dominion must result in a demand for timber before long, state the directors. The company has now a stock of first-class timber and will be in a position to cater for the increased demand when it comes along.

The paid-up capital of the company is £48,259, and sundry other liabilities make up a total of £63,603 in the bal-ance-sheet. Against this the principal assets held are £22,405 in bush, plant buildings, etc., and £16,972 in shares and advances to subsidiary companies One subsidiary firm, the Rotorua Development Company, Limited, made a profit of £64 3s 6d, and the Rotoehu Land Company, Limited, incurred a loss of £8 13s Id during the year ended June 30. The profit and the loss have been transferred by the respective companies to their development accounts, and have not been dealt with in the books of the Rotoiti Timber Company, Limited.