A DIFFICULT YEAR

Evening Post, Volume CXII, Issue 85, 7 October 1931, Page 12

A DIFFICULT YEAR

GUARANTEE CORPORATION

The directors o£ the New Zealand Guarantee Corporation, Ltd., report that "the past year has been one of great difficulty, and, although, during the year, your board have been inundated with applications for loans, most of them have not had the desired margin of security, and it has been difficult to .find avenues sufficiently safe for the funds available. Notwithstanding this, and the necessity for exercising extreme caution in accepting business, a fair turnover was maintained. In order to maintain your company's reputation for sound and solid finance, your board have considered it advisable to adopt a very conservative policy, and have, therefore, decided to write down heavily every doubtful account, with the result that the net profit thereby disclosed is £1110 6s Bd. The called-up capital of the Corporation remains at £214,390, the amount paid up on the ordinary shares being Bs. The uncalled capital is» £285,585, and, as the overdraft, which stood at £131,775 2s 5d at this time last year, has been practically extinguished, the possibility of making any further calls _is even more remote than ever. Interim dividends at the rate of 7 per cent, per annum on preference shares, 7%d per share on the fully paid ordinary shares, and 3d per share on the remainder, amounting to £6774 13s 9d for the six months ended 28th February, 1931, were declared and paid. The balance of profits carried forward from last year amounted to £1902 13s Bd, and, in view of the provisions made and the fact that liquid cash available is in excels of present requirements, the board recommend the transfer of £10,000 from reserves, and the payment of the following dividends: At the rate of 7 per cent, per annum on preference shares; a further dividend of 5d per share on the fully paid ordinary shares, making a total of 12% d for the year; and 2d per share on the balance of the ordinary snares allotted, makinj? a total of 5d per share for the year. These dividends will absorb the sum of £4749 15s lOd, leaving a balance to be carried forward to next year of £1488 10s 9d." Messrs. S. Kirkcaldie and Will Appleton, directors, offer themselves for re-election.