FARMERS DISTRIBUTING CO.

Dominion, Volume 6, Issue 1610, 29 November 1912, Page 8

FARMERS DISTRIBUTING CO.

; ANNUAL REPORT. The report winch is - to be jirescnted at tho annual meeting of the New Zealand , l-'arniers'-Co-operative Distributing Company 011 December 13 stated -tliat- the total net proiiC lor'the year, alter mailing provision-for bad-debts and, writing down -plant and'olhce nir'niture account,, .is £918 «fe, which 'ii. sufficient lo ciiablo the directors to wipe-olf the' counts incidental- to the lornnition -and. establishment of .the company, and "then 'have-a satisfactory credit, 'rue company therefore stands to-day' clear of all: encumbrances,- and in'a fma'ucially strong and proiii>eaming position. During the past, live years a satisfactory and increasing'rate of profit has been attained, Hthilo tho' percentage of expenses on the total yearly earnings ■ show a marked decline, as ; shown liy.. the following figures:—loUß,-91.8 per cent.; . I'JU'J, 92.69 per cent.; 1910, 77.17 per cent.; -lull, i9.'J6 per cent.; 191! i- 7i-.70 per. cent.

It will thus bo seen that-in,-lour years a saving of ,17 per cent, in the ; general, ad-, ministration'of tho business lias been ei-' fected. There has been a steady increase in the total sales-from year, to Kar,"and the ratio of profit has been grigjually Several Domiinon agencies "controlled by the company have, in-"a largo' ineasuK-, been responsible for the high-earning pu\. er of the business. . The. directors congratulate shareholders on the exceptionally good future prospects of- the company.' -Now that the financial position warrants' it, it is; proposed-'tu' considerably extend ' tho business, and special, steps n'ill Ixi taken' in, various directions to give effect-to this policy. ■ It-is not' proposed - this year-to -reconimend the payment of a' uividend, on capital,: the .major portion .of;the past.year'; profits being. iiMessar.y to..extinguish th<' llotation. and early, losses inseparable froin the. establishment' of any new business, arid particularly.'one of this ,character.- "• .'lt .-may,. however, be 'pointed' out; th: shareholders would have received a dividend on their shares fully twelve months earlier had-it not been for the -loss of the sum of over <£1000 (apart from the amount Of compensation actually received) through; the depreciation: of the lease of "the Vic;. toria Street premises owing. to. ; the operatiCns of. the State coal depot, and which; h&s had to bo met out of the profits of. the past few .years. . . - ■ The directors consider that'a fair p<jrtion'.'of.'.the remaining' available 'credit ; ■should be distributed by way of bonus to th'osp whb consign to the company, and thus encourage' this' department of the business. .:. -. . . ... ■ • . ■ ■ ... :-.The directors recommend that the balance to the credit of profit and .loss account •be'-.disposed of as follows:—First:. ■Bonus coupons for, the financial year, ending .September'3o,. 1912,: be redeemed on the.;.following..basis: (a) Rebate to snareholders, ten ■ per cent. ; .(b), rebate to nonshareholders, seven'and a half per cent.; second: 'bonils, to staff; third: balance to ; be carried, forward to dividend on capital account. . .... • 1 ; 'It is proposal to issue ; the 28G forfeited, shares at a-.preinium of five shillings eacli to shareholders;-.' preference to bo ; given4o those holding riot more than-five shares. ! As.sooii as. these s.hares 'have been all taken up, - then the calls at present paid "6n same, namely','.£ll2 ss'. 3d., be'set aside to form the nucleus of a reserve account'. ■ -• : - ' i ■ ;'The directors propose' to issue'" new shaves, with a minimum of five in num-ber,-and at a premium of 1 10s. per share. •'.During the-coming year fin extraordin-.. ary'general , meeting will be convened to c6nsider.:'the advisableness of amending ttye' articles of association to permit the company to pay a dividend on capital up to 10 per cent, in lieu of the present provision restricting the maximum dividend to 5 per cent.- i •

In addition to the.bonus/coupons issued with account sales for consignments to the company, it is ..proposed to . forthwith issue coupons entitling shareholders to a bonus on their purchases from the company. ' .

The directors areprcpared to receive -'applicationsfor.'loans at current interest rates to'shareholders up-to the full value of paid-up sliare3 held by them. in the company, thus, providing the means of obtaining temporal'}-'accommodation., without delay or unnecessary'formalities. The retiring directors are Messrs. J.: Balsillie, A. P. Allport, and Alex, Strachan, all of whom, ■ l>sing 'eligible, offer themselves for re-election.