LEYLAND O’BRIEN TIMBER COMPANY

Dominion, Volume 20, Issue 52, 25 November 1926, Page 14

LEYLAND O’BRIEN TIMBER COMPANY

Dominion Special.

Auckland, November 24. The annual meeting of shareholders in the Leyland and O’Brien Timber Co. look place to-day. when the chairman of directors iMr. W. Elliot) presided. Sir George Elliot said that the company had done remarkably well, which was due to the conservative basis upon which the business was conducted. All the profits made had not been dissipated in dividends 'The company had started with a capital of X’35.000 and the shareholders had not been asked for one penny since. To-day the capital was .L'l 20,0(10, which was very creditable to the management. Mr W. B. Leyland said that they were now passing through a critical time in the timber industry. Great difficulty was experienced in doing bi:siness at a reasonable profit. lie was, however, looking forward to the time when business would again improve in their industry.

N.Z. FARMERS’ CO-OP. DISTRIBUTING CO.

Tlie buluncc-slicet of the New Zealand Farmers’ Co-operutive Ditlribuimg Company Ltd., for the year ended liepleniber 30, shows that the gross profit on trading amounted to .£2(1,1-12, which coni lasts with £25,601 m the previous year, com missions and store charges yielded £2i,564, against £30.710, and transfer lees brouglit in Ills, against 275., the total gross revenue bein'* £50,706, against £55,712. The expenditure under all heads, including depreciation on properties, buildings, plant, furniture, etc., and provision foi bad debts totalled £48,181 as compared with £50.637 in Jhe previous year, a saving of £2156. The net profit is £2525. against £5075. the contraction being due to the smaller revenue received from commissions and store charges. The balance sheet items with those for last year in parentheses are as follow: Liabilities—-(Capital £163,310 (£163,691); dividend suspense account £57 (£57); fixed deposits £15,474 (£15.272); debentures, nil (£7095); sundry creditors and shareholders' current accounts £17.931 (£19,100); reserve for interest on calls paid in advance, £3976 (£3976); reserve for shareholders’ rebates, £3859 (£4196); balance due bankers, £32,739 (.£21.359). Assets—Freehold and leasehold properties £fifi.fi9s (£61,601); stocks on hand, £23,521 (£25.438): plant and furniture. £9123 (£10.024); investments. £11165 (£1108); bills receivable, £Bl6 (£864); sundrv debtors and advances £71.222 (£70.073); profit and loss debit £61.301 (£05.038). Totals, £237,316 (£234.740). The balance of £7094 due to debenture holders, although not actually maturing until 1941, were paid in full on August 6 last. The directors propose to reduce tile capital of the company bv writing down tlie nominal value of the “A” shares from £1 to 145.. and the "B” shares from £5 fo £3 10s. each, which would enable the company to cancel the balance of the nccmnnlatccl losses: to create a reserve of £3600 for bad nnd doubtful accounts, and to provide £lOOO to cover depreciation on certain properties, which have declined to that extent in value since they were purchased. The directors will no doubt bo commended for taking this stop; for it brings the nrosnocts of a. dividend much nearer 'han otherwise would lie the case, and dividend earning shares have a market value.