SELFRIDGES RESULTS

Wanganui Chronicle, Volume 80, Issue 123, 27 May 1938, Page 11

SELFRIDGES RESULTS

LOSS IN AUSTRALIA HIGHER TURNOVER REPORTED Selfridges (Australasia), Ltd., reports a net loss of £21,273 for the year ended January 31, compared with net profits of £14,187 the previous year and £5873 for 1935-36. An interim dividend of 4 per cent, paid in September required £7455. No final dividend is recommended. The previous year’s distribution was 6 per cent. A credit of £202 remaining after payment of the interim dividend reduces the debit balance to £21,070, and this has been written off against share premium reserve, reducing that item to £2679. During the year £9OOO. representing additional costs in consequence of new awards and expenses associated with the chain store inquiry, was charged to general expenses. Depreciation provided (including amortisation of leases) amounted to £8034. The report states that the loss was made in spite of a substantial increase . in turnover. It was disclosed after stocktaking, and was contrary to the board's expectations. It has been investigated, and the result of the investigation will be disclosed at the annual meeting. Earnings of Subsidiaries The company is in a sound financial position, the report adds. The stores are receiving increased patronage, sales being greater by 8 per cent, than those of the previous year foi the same number of stores. The increase has been augmented by the opening of additional units. Paid-up capital is £235,788. There is a reserve of £41,000 created in connection with the acquisition of promoters’ shares in other companies. Creditors are owed £99,478. Among the assets, leasehold property is valued at £56,966, plant and fittings at £54,362, and stock at £123,778. The company’s interest (shares and current account) in Selfridges (W.A.), Limited, is shown at £42,897, and in Selfridges (N.Z.), Limited, at £57,483. Selfridges (W.A.), Limited, began trading on September 16, 1937, and made a net profit for four months and a-half to January 31 of £1526, after setting aside £330 as provision for taxation. The profit is carried forward. Selfridges (N.Z.), Limited, began trading on October 28. Its net profit for two months and a-half, after providing £ll6 for taxation was £598. This is carried forward. The directors believe that prospects are bright for both subsidiaries. Shareholders’ Circular Ten shareholders, claiming to hold and represent between them share..totalling £40,000, have issued a circular setting out what they believe should be done to rehabilitate the company. Among their suggestions are the reelection of the chairman, Mr. E. C. B. Midlane; and increase of the directorate from live to seven by the addition of “men with long experience in merchandising and accountancy"; and the revision of the managing director's employment agreement, which they believe should be made an annual one. The 10 shareholders state that the majority of the directors has undertaken to nominate and elect to the board Messrs. J. A. Carpenter and John W. Austin, after the shareholders have increased the board to seven.