FLUENZOL'S YEAR

Evening Post, Volume CXXVI, Issue 156, 30 December 1938, Page 10

FLUENZOL'S YEAR

NEW SPECIAL LINES

INCREASED TURNOVER

Mr. J. R. Kirk, chairman of The Fluenzol Proprietary, Ltd., in moving the adoption of the directors' report and balance-sheet, at the recent annual meeting, analysed 'the balancesheet and congratulated shareholders on the result. It was with pleasure, he said, that the directors reported continued progress in the operations of the company during the year ended September 30, 1938. Turnover had been more than doubled, due very largely to the acquisition of additional lines. The gross profit was considerably higher and the net profit might be regarded as extremely satisfactory. "Like most other similar companies," said the chairman, "we have felt the weight of greatly increased manufacturing and distributing costs, but we have been able to so increase our turnover with new products that the final result of the year's operations will be appreciated by all shareholders. "Although we are substantial importers of drugs and Pharmaceuticals we have always considered * that New Zealand-made goods should be our first concern and some years ago we commenced to extend the list of goods manufactured at our works.

"We realised that on account of the very nature of our products and their uses, no chemical manufacturer should be -without experienced, qualified chemists and laboratories to guarantee the purity, quality, and potency of his products and we therefore made arrangements to ensure that every-day chemical control of goods throughout processing is an inherent part of our service to our customers. That the above policy is appreciated by users of chemical goods is evidenced by our ever-increasing turnover in galenicals, Pharmaceuticals, toilet products, and proprietary lines." Gross profit, said the chairman, was £14,139 0s Id, and, after making provisions for depreciation, bad debts, etc., the net profit was £2972 19s 7d. After providing reserves for taxation the appropriation account stood at £2687 15s 6d and the directors recommended that a dividend of 8 per centum on ordinary and preference shares be paid, absorbing £713 12s Od, leaving a balance of £1974 3s 6d. They further recommended that the sum of £500 be transferred to a dividend equalisation account, that a further £500 be transferred to general reserve account and that the balance of £974 3s 6d be carried forward.

The report and balance-sheet and the recommendation of the directors were adopted. The balance-sheet to September 30 was as follows: — Liabilities. — Unsecured creditors: Sundry creditors, bills payable, and reserve,for income tax, £9095 6s 9d; secured creditors, Bank of New Zealand,* £3322 11s Id; general reserve, £500; paid-up capital, £8920; profit and loss appropriation account, £2687 15s 6d. Total, £24,525 13s 4d. Assets.—Sundry debtors, £6738 14s 6d, or (less reserve for bad debts and discounts, £620) £6118 14s 6d; stock in trade, £6233 13s 6d; life policysurrender value, £ 163 9s Od. Total floating assets, £12,515 17s Od. Furniture, less depreciation, £124 4s 8d; manufacturing plant, at cost less depreciation, £2201 4s 9d; motor-cars, less depreciation, £340; freehold land and buildings, at cost less depreciation, £9344 6s lid. Total fixed assets, £12,009 16s 4d. Grand total, £24,525 10s 4d.