LOAN AND MERCANTILE

Waikato Times, Volume 111, Issue 18524, 2 January 1932, Page 11

LOAN AND MERCANTILE

ANNUAL REPORT OF COMPANY. A LOSS OF £ 1 4S,iG j. A loss of £118,405 is shown in the accounls of the New Zealand Loan and .Mercantile Agency Company, Limited, for the year ended .tune 50. This compares with a profit of £70.5;>0 in 1020-80 and of £17'.),717 in 1028-2!). The conditions had also adversely affected the position of many, of the company’s clients, with the result that special provisions had to he made for had and doubtful debts, a transfer of £155,000 from accounls set aside in past years for contingencies being made for the purpose. The credit balance of £0585 then shown is added to £12,102 brought forward from the previous year to make £18,998 carried forward. An interim dividend was paid on Hu- Of per cent, second preference stock i'll a time, the report stales, when it appeared that profits would he earned by the end ot tile year, sufficient ;il least to pay the full dividend oil hoi 1 1 classes o' - preference stock. In face of the result of the year's trailing the directors were unable to recommend payment ot any lurtlier dividends. The position, Ilierefme. is tli.it the. whole ot the second preference received half its dividend for the year and the first preference receives none. In order to regularise the position, as far as possible, the seeoml preferen :<: payment, amounting to £lti,2nO, has been charged against contingent and taxation reserves and not against icsenuc. in lt*2!)-80 lull preference

dividends were paid and 4 per cent was distributed on ordinary slock. The directors state that no provision lias been made for depreciation due to the adverse exchanges between Australia and New Zealand and Great Britain. The hoard believes that those rates of exchange are, at least to a large degree, temporary, and w..l gradually disappear.