DOLLAR RATES.

Evening Post, Volume CXXIII, Issue 123, 26 May 1937, Page 14

DOLLAR RATES.

M CKENZIE'S STORES SALES AND PROFITS' NOTABLE INCREASES The directors of McKenzie's Department Stores, Ltd., in their first report, to b,e presented to shareholders at the annual meeting at Wellington on June 8, report that the company has made steady progress, both sales and profits showing increases over the previous year. ) "The year under review has been a record one for McKenzie's stores. The trading companies carried forward last year undistributed profits amount- ) ing to £46,031 8s 8d; to this is to be added the profit for the year ended March 31, 1y37—£80,005 19s—thus giving an aggregate of undistributed prolit availaole of £126,037 7s Bd. "The dividend declared by J. H. McKenzie, Limited, absorbs from their profit £77,400, and- leaves a balance of profit of £48,637 7s 8d to carry forward to the. next trading period. "The dividend declared by the subsidiary company makes available £77,398 ISs for McKenzie's Department Stores, Limited. From this I amount, sundry expenses amounting to £783 11s 3d have to be deducted, leavI ing a balance ■ available- for distribution of £76,615 Is 9d. . "Your directors recommend that a dividend at the rate of 17J per cent, be paid on the paid-up capital of the 1 company, which now stands at £400,000. This dividend will absorb > £70,000, leaving a sum of £6615 Is 9d Ito carry forward. The trading companies will carry forward undivided profits of £48,637 7s Bd. The total uni distributed balance carried forward to I next year is £55,252 9s 5d." ' The consolidated balance-sheets of > J. R. McKenzie, Ltd., and subsidiaries and the balance-sheet of McKenzie's Department Stores, Ltd., have already appeared in these columns. They are i included in the report for the period ended May 15. A foreword to the report states that over 25 years ago Mr. J. R. McKenzie and the late Mr. G. H. Carter started business in New Zealand as retailers I of fancy goods. Stores were opened in Christchurch and- Dunedin. From this small beginning has grown the pre- ! sent McKenzie chain, which now. operates 26 stores. Up until November 9 last the business was conducted as a private company. McKenzie's Department Stores, . Ltd.—a public company—was incorporated on. that date with a nominal capital of £500,000 In 500,000 shares of £1 each. This company purchased the shares of J. R. McKenzie, Ltd., for 344,000 fully paid £1 shares and £156,000 in cash. In addition to the 344,000 shares so allotted, the public company issued 3250 shares at. £1 and has since issued a further 52,750 shares to shareholders and employees at a price of £3 per share. All of these shares were subscribed for and paid in cash, therefore the present position of the company is that it has a total issued capital of 400,000 £1 shares— 100,000 shares being held in reserve for subsequent issue or distribution to shareholders. .. During the twelve months five new stores have been opened and are operating successfully. Twenty-six trading stores are now operating in various parts of New Zealand. • The directors have decided to contribute a sum of £1000 to benevolent purposes. '..- • , . ' .During the. period, .in^ .review the directors invited- several gentlemen outside the McK'erizie interests to join the iboard, Mr. A. W." Duncan and Mr. L. V. Moses retired,--and Sir Charles Statham, Mr. J.--E;-Ramsay, and Mr. J. >M.A. Ilott were elected. The board of ..directors is now as follows:—Messrs. J. R. McKenzie (managing director), J ,M. A. Ilott, T. B. Guscott, and J. E. Ramsay, and Sir Charles Statham. Mr. Guscott retires, but is eligible and Offers himself for re-election. ; Regarding the capital position the report states that the;authorised capital of McKenzie's Department Stores. Ltd,, is £500,000 in 20s shares, of which 347,250 have been allotted at 20s each and 52,75,0 at a premium of 40s each. This gives an allotted and fully paid up capital of £400,000 and provides a share premium reserve of "Full provision for taxes has been made, and it is hoped this will be adequate. Leasehold, improvements, and fittings have been substantially depreciated." _ i The asset, freehold property, standing at £206,775 16s lOd, represents the cost of various properties to the company. There are mortgages on only two properties, amounting to £27,218 15s 4d, leaving a net value of £179,557 Is 6d.' The company has a substantial equity in these figures. The trading companies have their • warehouse and .general head office at 222 Willis Street, Wellington. Substantial additions are now being made to provide more warehouse space and new up^to-date offices. The McKenzie block (states the report) when finished ■will be a credit to the company.

The Associated Banks (other than the Bank of New South Wales) quoted the following dollar rates today, on a New Zealand currency basis. They are subject to alteration without notice: — U.S.A. Canadian Dollars Dollars (Per (Per £1 N.Z.) £1 N.Z.J Selling— T.T 3.964 3.9513-16 On demand .. 3.96| 3.96 5-16 Buying— On demand .. 4.0015-16 4.00 9-16