HIGH COSTS

Gisborne Herald, Volume LXVI, Issue 20023, 23 August 1939, Page 7

HIGH COSTS

MERCANTILE BUSINESS COMMON, SHELTON AND CO. DIVIDEND OF 5 PER CENT Substantially increased costs of doing business, as compared with those of the previous year, are shown in the statement of accounts and balance sheet now in, circulation among shareholders of Messrs. Common, Shelton and Company, Limited. The net profit for the year was £3368, as compared with £3579 for the previous year, though the gross profit was larger. The company considerably reduced its current liabilities during the year, the mortgage to the bank having been brought down, ito £41,754, as against £46,371 at the end of the previous financial year, while deposits and customers’ credits represent £6094, as against £9311 in the last balance sheet; sundry creditors are also lower, by about £6OO, and The total of the three items mentioned is £58,711, compared with £65,933 for the previous financial year. The total of liabilities is £124,774, including £35,609 which represents share capital, and £15,500 constituting a reserves account. Assets include stocks and materials valued at £39,621 —about £IOOO less than at March. 1938—sundry debts £40,155, over £2OOO less than in. the previous year; property valued at £38,188; and furniture, fittings, motors, plant, and other items valued at £6552. Profit ami Loss Account In the profit and loss account, the carry-forward from the previous year was £493, and gross profits from all sources £36.553, the last item comparing with £36,146 'for 1937-38. Salaries and wages cost the company £18,213, as against £17,030, and other items were much as in the previous year’s profit and loss account. With ia total of £3816 to distribute, the directors recommend that a dividend at the rate of 5 per cent be paid on share .capital, that £ISOO be transferred to the reserves account, and that £’sßo be carried forward.

The report contains a reference to the recent death of Mr. J. B. Kells, who served the -company as a director for 37 years. "He joined the board in 1902, and for itwo periods, 1907-18 and 1927-30, he was managing director,” it adds. ‘‘The directors desire to place on record their very high appreciation of the valued services given lo the company by the deceased.” In* the normal course, Mr. Kells would have been eligible for re-elec-tion to the board, as he and Mr. W. Graham were due to retire by rotation. The shareholders will be asked to fill 'the vacancy caused by Mr. Kells’ death. Mr. Graham will be renominated.