MOSGIEL WOOLLEN COMPANY

Dominion, Volume 20, Issue 45, 17 November 1926, Page 6

MOSGIEL WOOLLEN COMPANY

A SATISFACTORY YEAR CHAIRMAN'S REVIEW AT ANNUAL MEETING Dominion Special, Dunedin. November IG. “I am glad that the result of the year’s work is satisfactory, and I am sure that shareholders must be pleased that iti s so,” said Sir John Roberts (chairman of directors) in moving at the fiftv-tliird annual meeting to-day the adoption of the Mosgiel Woollen Company’s report and balance-sheet. “Complaints have been made by some of the woollen companies,” he went on, “that they have not been kept so fully emploved as they could have desired, and this lias made the position somewhat difficult for them, but I am glad to be able to report that the Mosgiel mill has been kept going by a fair measure of support from our customers.”

The import of woollen goods during the past rear, lie said, had been somewhat excessive, and that, no doubt, accounted for the lessened demand for the local production. Imports had of late, however, considerably eased off, and'this would, no doubt, greatly assist the mills of the Dominion. Wool prices during the past year bad been fairly uniform. When wool was subject to violent fluctuations trade was carried on in a very uncertain way, and from a manufacturer’s point of view stable values were much to be desired. He was pleased to be able to report that the entire output of the mill during the past year had been satisfactorily disposed of. “On July 26,” lie went on to say, "we had a somewhat serious fire in the warehouse, and a large claim had to be made on the insuring companies. The origin of the fire has not been ascertained, and it is difficult to suggest what it could have been. All the goods in the basement were seriously damaged by the fire, and the insurance offices took these over at mill cost and sold them by auction. The goods on the first and, second floors were damaged by smoke only, and insurance was paid for the estimated depreciation caused by the same. As is usual in such cases, the directors considered that it was wise to sell all these damaged goods at the reduced values, and a clearance of them has been effected. The total amount paid by the companies was £18,670, but this was reduced by £6OOO realised by the goods sold at auction. The monies received on account of the fire considerably augmented our available cash, and this in a large measure accounts for the substantial sum we have on deposit. We must have a good stock of goods in the warehouse, and a large proportion of the £lO,OOO now on deposit will be required to stock up with Our business requires that stocks must accumulate pending delivery to the purchasers at stated periods.” Turning to the balance-sheet, he said that the capital stood at the old figure. The reserve account had increased by £3OOO. t , Sundry debtors, including discount off book debts and provision for income-tax, new lift, heating apparatus, and fire alarm system, snowed a reduction of £l5OB compared with the previous year’s amount. Last year no provision was made for income-tax, and this year £2OOO was suggested as provision for the outlay on lift, heating, and fire alarm. On the credit side of the balance-sheet jt would be noticed that they had in cash £ll,BOO, as against £8233 which they owed the bank a year ago. Goods manufactured and in process showed a reduction of £36,961, and this was largely accounted for by the sale of goods resulting from the fire and the money paid by the insurance companies. Turning to the profit and loss account, he said that on the debit side working expenses were higher by £1433. This, however, required .no explanation, as on many j revious occasions it had been remarked that this expenditure Was always a fluctuating one. In regard to charges and salaries, including income-tax, this year’s account was £2109 in excess of last year. The provision for income-tax more than accounted for this increase. On the credit side it would be noted that the interest account showed _ a small credit as against debits which had been shown for many years. The goods account showed tn increased profit of £9401; and stood at £44,542. He trusted these explanations would assist shareholders to a clear understanding of the accounts. . The chairman then moved the adoption of the report and balance-sheet, and that a further dividend of 4 per cent, and a bonus of 2 per cent, be paid, making 10 per cent, for the year. This was carried.