FACTS FOR INVESTORS.

Auckland Star, Volume LIX, Issue 229, 27 September 1928, Page 4

FACTS FOR INVESTORS.

FARMERS' AUCTIONEERING.

SUCCESSFUL OPERATIONS

As already indicated in these columns tlie Farmers , Co-operative Auctioneering Co. finished up its last financial year with a net profit of £41,065.

Past Years Compared.

The following table indicates the trend of operations in recent years:—

Profits. Div. General Gross. Net. p.c. Reserves £ £ Pre. Ord. £ 1925 .. 200,107 55,508 6 8 26,376 1926 .. 131,373 37,939 6 6 26,376 1927 .. 107,882 18,294 6 - 26,376 1928 .. 130,536 41,065 6 6 26,376 The accounts submitted on October 28, 1925, were for a period of 18 months ending July 31. „——» Balance-Sheet Items. The following tables contain the chief balance-sheet items for the years ending July 31, 1925, 1927 and 1928:— LIABILITIES. 1925. 1927. 1928. £ £ £ Paid capital . 478,839 478,895 478,895 Mortgages ... 24,582 7,272 7,212 Fixed deposits 37,179 27,944 25,586 Sundry cred'rs 60,744 41,683 39,864 customers , cr's. 12,635 7,835 6,971 Bank of N.Z. . 31,946 19,556 19,371 The capital account shows £750,000 authorised. £658,267 has been subscribed, of which £405,055 are ordinary shares of £5 each. Uncalled under this head totals £178,314. Preference shares at £1 each, all called up, total £253,212. ASSETS. 1925. 1927. 1928. £ £ £ Properties ... 162,504 174,875 104,462 Machin'y & pi. 13,288 9,960 10,365 Office equipm't 6,552 6,723 7,105 Sundry dr., etc. 363,745 303,282 328,67!) Stocks 116,837 85,140 81,245 Investments .. 48,151 27,867 27,867 Total assets . 711,077 624,301 639,829 The latest balance-sheet iudicates a perfectly healthy position. Outside liabilities are under £100,000, and against these are clean investments totalling £27,867, to say nothing of uncalled capital amounting to £178,000. The margin of tangible assets over total liabilities is not large, actually about 10 per cent, but the general position has'greatly improved during the past four years. In July, 1925, outside liabilities were close on to £170,000. In the interim, stocks have been worked down, thus getting rid of the post-war heritage that afflicted most New Zealand companies of this kind; sundry creditors have been reduced twothirds, and the bank overdraft one-third. And what will please shareholders. most is that net profits have doubled those of last year, making it possible to resume dividends on ordinary shares.

A feature worthy of note is that during all the troublous times this company in common with others has passed through, no outside financial assistance in the shape of debenture issues has been sought. The company, that is the shareholders, has managed its own finance with temporary accommodation from the bank, and preference holders have not been asked to forgo any portion of their privileges or the usual dividend.

Having thns weathered the storm which produced so much financial wreckage throughout the Dominion, the company should be able, in view of the greatly improved outlook for Waikato fanners, to look forward with confidence to the future.