INVERCARGILL LICENSING TRUST SIXTH ANNUAL REPORT FOR THE YEAR ENDED 31st MARCH, 1950

Appendix to the Journals of the House of Representatives, 1950 Session I, H-24

H—24

1950 NEW ZEALAND

INVERCARGILL LICENSING TRUST SIXTH ANNUAL REPORT FOR THE YEAR ENDED 31st MARCH, 1950

Presented to Both Houses of the General Assembly Pursuant to the Invercargill Licensing Trust Act, 1944, Section 28

By Authority: R. E, Owen, Government Printer, Wellington. —1950.

H—24

ANNUAL REPORT

The members of the Invercargill Licensing Trust have pleasure in presenting the sixth annual report and statements of account for the past financial year, together with balance-sheet as at the 31st March, 1950. The year has been a most successful one from all points of view. Many improvements have been made in accommodation, and the trading results also show substantially increased returns. The turnover for the year at £396,771 represents an increase of £36,161 on the previous year's figures, while the net profit at £58,280, as against last year's profit of £34,216, represents an increase of £24,064. Some of the hotel tariffs have been increased by Price Tribunal authority, and these increases have prevented further losses on that side of the business. We are now in a position to offer to the travelling public a very high standard in hotel accommodation. Our financial position is now assured and without taking into consideration goodwill usually assessed on liquor sales, we can safely value our equity at more than the figure of £46,101 as shown in our books. A most conservative valuation of the assets held by the Trust at present-day values would show that true values would exceed by as much as 50 per cent, the book values as shown in the accounts. It has been decided to distribute from the profits of this year the sum of £5,000, and that amount will be apportioned among various cultural, social, and sporting interests. When the Trust commenced business, it was felt that a reasonable proportion of the profits earned should be given back to the public, and it was decided to distribute up to 50 per cent, of the net profits of each year. On that basis we could this year have distributed up to £11,500, but with rising costs of buildings, and increased wages pending,, it was thought wise to transfer more to the General Reserve, which Account will now have a credit of £41,101 A statement is appended showing yearly turnover, net profit, and allocations of net profit for each of the last six years. During the year we have been steadily improving the accommodation in all residential hotels and we hope soon to commence additions and renovations at Hotel Avenal. This hotel will be a medium tariff one and will accommodate fifty guests, besides providing a large modern bar for the needs of that particular district. Extensions, to bar space in Deschlers Hotel are now under way, and it is hoped that at an early date we may be able to dispense with one of our temporary bars. Once again we are pleased to report on the general good behaviour in all establishments, and congratulate our managers and staff on their efforts to keep the consumption of liquor on a high standard. In appreciation of their efforts, the members of the Trust have decided to distribute a bonus totalling £2,000 among members of the various staffs in proportion to their length of service with the Trust. During the year more shares have been acquired in Southland Breweries, Ltd., from whom the bulk of our draught ale is purchased. Our holding in that company is now 13,264 fully-paid shares of £1 each, of a total share capital of fifty thousand £1 shares. The interest in and the business arrangements with that company have been mutually beneficial. Our new General Manager has now completed more than one year's service with us, and the year's results are a reflection on his executive ability and knowledge of the hotel trade. It is with regret that we record the loss of the services of Mr. T. F. Doyle, who has gone to Wellington to reside permanently. He was one of the original members of the Board and his general business ability was much appreciated. I wish to place on record my sincere thanks to the members of the Trust for their loyalty, assistance, and co-operation, so freely given during the year. H. Ritchie, Chairman.

3

H—24

INVERCARGILL LICENSING TRUST Balance-sheet as at 31st March, 1950 1949 Liabilities 1949 £ Current Liabilities— £ £ £ Current Assets— £ £ £ 276,179 Bank of New Zealand: Overdraft 258,474 1,154 Cash in hand .. .. 2,455 18,005 Ordinary trade creditors .. .. 16,413 .. Amount on deposit .. .. 50 Unclaimed moneys .. 95 1,521 Imprest advances - .. 1,545 27,111 Provision for taxation .. .. 28,134 4,050 Staff bonus .. .. .. .. 2,000 1,802 Sundry trade debtors .. .. 1,763 4,750 Community Centre Donation Reserve .. 5,150 Stocks on hand— 12,936 Cellar .. .. .. 18,747 326,045 Total of Current Liabilities .. .. 310,266 3,876 Provisions .. .. .. 3,751 15,613 Reserves: General Reserve .. .. .. 23,143 14,610 Maintenance stores .. .. 9,545 10,030 Profit and Loss Appropriation Account ... .. 22,958 33,806 35,899 Total of current assets .. .. .. 37,856 7,083 Investments at Cost: Ordinary Shares of £1 each in Southland Breweries, Ltd., each fully paid .. 17,177 Fixed AssetsFixtures and fittings at cost .. 1,380 Less Depreciation Reserve.. 60 1,320 Furniture at cost .. .. 41,712 30,133 Less Depreciation Reserve .. 10,490 31,222 15,230 Linen, crockery, glassware, &c., at valuation .. .. 9,519 Motor-vehicles at cost .. 1,047 409 Less Depreciation Reserve .. 720 327 Plant at cost .. .. 28,957 13,795 Less Depreciation Reserve .. 12,317 16,640 Buildings at cost .. .. 217,550 174,460 Less Depreciation Reserve .. 49,923 167,627 63,677 Freehold land at cost .. .. 63,677 297,704 Total of Fixed Assets .. .. ..290,332 11,002 Fictitious assets: goodwill .. .. .. 11,002 £351,688 £356,367 £351,688 £356,367 (Figures adjusted to the nearest pound.)

4

S—24

The Audit Office having examined the balance-sheet and accompanying accounts required by law to be audited, hereby certifies them to be correct.— J. P. Rutherford, Controller and Auditor-General. For and on behalf of the Invercargill Licensing Trust: L. E. Raines, General Manager and Treasurer. Combined Trading Account for Year Ended 31st March, 1950 1949. 1949. £ Stocks on hand, Ist April, 1949— £ £ £ Sales— £ £ 4,505 Cellar .. .. .. .. 4,082 | 283,402 Liquor .. .. .. .. 308,719 3,980 Provisions .. .. .. .. 3,137 I 43,440 Board and residence .. .. .. 54,759 : 7,219 | 363,478 Purchases during year—■ j 12,958 Restaurant .. .. .. .. 11,554 179,203 Cellar .. .. .. .. 187,955 ! 7,861 Cake kitchen .. .. .. 7,500 32",425 ' Provisions .. .. .. .. 30,792 I 7,608 Elmwood Gardens .. .. .. 8,107 : 218,747 ' 5,341 Milk-bar .. .. .. .. 6,132 ; 33,293 225,966 ; Less stocks on hand, 31st March, 1950— 4,082 Cellar .. .. .. .. 5,025 3,137 Provisions .. .. .. .. 3,095 •—— . 8,120 212,894 Cost price of goods sold .. .. .. 217,846 147,716 Gross profit .. .. .. .. .. 178,925 . £360,610 £396.771 £360,610 £396,7.71

5

H 24

INVERCARGILL LICENSING TRUST— continued Combined Profit and Loss Account for Year Ended 31st March, 1950 £ Depreciation— £ £ i £ £ 4,174 Buildings .. .. .. .. 3,326 147,716 Gross profit from Trading Account .. .. 178,925 Fixtures and fittings .. .. .. 60 1,428 Gross profit from store cellar .. .. .. 1,283 3,503 Furniture .. .. .. .. 3,803 . Gross profit from Maintenance Department .. 353 4,758 Linen, glassware, &c. .. .. 3,168 15,359 Rents .. .. .. .. .. 16,113 1,166 Plant .. .. .. .. 1,390 ! 487 Dividends .. .. .. .. .. 573 102 Trucks .. .. .. .. 82 11,829 | 255 Audit fees .. ~ .. .. 348 Fuel and power .. .. .. 4,321 1,041 Honoraria and allowances .. .. 1,075 1,653 Insurance .. .. .. .. 1,520 11,354 Interest .. .. .. .. 9,955 1,158 Land-tax .. .. .. 1,772 2,597 Laundry .. .. .. .. 2,964 3,160 Rates .. .. .. 3,869 9,108 Rent .. .. .. .. 8,913 6,984 Repairs and maintenance .. .. 4,882 Staff— 69,836 Salaries and wages .. .. .. 78,994 1,738 Superannuation .. .. .. 2,042 8,092 Sundry trading expenses .. .. 6,371 . 95 Unauthorized expenditure .. .. 112 , 127,138 130,774 138,967 34,216 Net profit .. .. .. .. .. 58,280 £164,990 £197,247 £164,990 £197,247 (Figures adjusted to the nearest pound.)

6

H—24

Profit and Loss Appropriation Account 1949 \ 1949 £ £ £ £ 2,200 Donations allocated during year, 1949-50 .. .. 2,500 5,723 Balance brought forward, Ist April, 1949 .. .. 10,030 3,523 Transferred to General Reserve .. .. .. 7,530 ——— — 5,723 10,030 5,723 10,030 34,365 Net profit for year ended 31st March, 1950 .. 58,280 £ 16,100 Provision for taxation .. .. .. 27,500 8,235 Special depreciation on buildings and plant .. 7,822 35,322 10,030 Balance carried'forward, 31st March, 1950 .. .. 22,958 £40,088 £68,310 £40,088 £68,310 (Figures adjusted to the nearest pound.)

7

H—24

INVERCARGILL LICENSING TRUST—continued Schedule of Departmental Net Profits and Losses

Statement Showing Yearly Turnover, Net Profit, and Allocations of Net Profit

Approximate Cost oj Paper.—Preparation, not given; printing (659 copies). £l5 10s.

By Authority: R. E, Owen ; Government Printer, Wellington, —1950, Price 6d.]

8

Net Net Profits. Losses. Hotels— £ £ A venal .. .. .. ... 1,879 Cecil .. .. . . 2,954 Deschlers 5,467 Grand .. .. 16,156 Southland .. . . .. 4,809 Appleby 7,423 Clyde . 7,434 Kelvin .. .. .. 11,737 Bottle-stores — Mary Street 1,587 North Invercargill .. • • « 2,148 Rugby Park 3,057 Spey Street 4,161 Brown Owl Restaurant 1,999 Head Office 6,816 PropertiesCecil Buildings 730 Grand Buildings 147 Trust Buildings . .. .. 23 Bulk store ... .. 1,992 Maintenance Department 461 Gala Street .. :.. .. ... 48 Sydney Street .. .. ... 70 69,689 11,409 11,409 Total net profit as per Combined Profit and £58,280 Loss Account j (Figures adjusted to nearest pound.)

Year Ending Turnover. Net Profit. Thirty Per Cent. Special Depreciation. Transfers to Taxation Reserve Account. Profit Distributed as Donations. Transfers to General Reserve Account. £ £ £ £ £ £ 31st March, 1945 139,129 22,360 17,235 5,125 31st March, 1946 260,561 32,961 20,911 6,050 6,000 31st March, 1947 313,556 26,562 13j 199 9,057 3,340 966 31st March, 1948 345,991 27,54810,072 11,753 2,200 3,523 31st March, 1949 360,610 34,216 8,236 16,100 2,351 7,529 31st March, 1950 396,771 58,280 7,822 27,500 5,000 17,958 1,816,618 201,927 39,329 102,556 18,941 41,101