YEAR’S TRADING

Gisborne Herald, Volume LXVI, Issue 20078, 26 October 1939, Page 4

YEAR’S TRADING

NET PROFIT HIGHER GISBORNE SHEEPFARMERS’ NO FREEZING DIVIDENDS MERCANTILE IMPROVED The accounts of the Gisborne Sheepfarmers’ Frozen Meat and Mercantile Company, Limited, for the year ended August 31 show a net profit of £4558, which, with a balance of £1042 brought forward from last year, makes a total of £SGOO available for distribution.

The directors recommend that the usual dividend be paid on mercantile preference shares and a dividend of 3 per cent on ordinary mercantile shares. No dividend is proposed on the freezing shares, this being the first time for some years that it has been found necessary to pass the preference dividend. It is proposed that £2OOO be transferred to the mercantile reserve account, leaving £1124 to be carried forward.

A dissection of the balance sheet shows a profit on the mercantile department of £7423, compared with £9379 last year and £8637 in 1937. On the other hand, the loss of £2277 in the freezing department compares with losses of £6179 and £4281 in the two previous years. The net result of the combined departments was a profit of £4558, an increase on the figure of £2882 last year, but a substantial decline on the profit of in 1937.

Higher Mercantile Dividend

This year’s ordinary dividend of 3 per cent on mercantile shares compares with a distribution of 2J per cent in each of the two preceding years.

Changes in the balance sheet this year as against last include an increase in sundry creditors from £7440 to £22,398: an increase in advances against consignments from £1853 to £16398; and a bank overdraft of £9904 compared with a credit balance of £2183 last year. The reserves, at £27,076 compare with £26,633 last year and £20,450 two years ago. Fixed assets have declined from £404,967 last year to £394,280. Investments have increased from £54,954 to £60,777, and sundry debtors have increased from £60,239 to £89,126, the reserve for bad debts standing at £7OOO in each year. Stocks on hand are valued at £45,880. compared with £41,546 last year. The report shows that killings at the Gisborne works decreased by 714 freight carcases, but at Tokomaru Bay there was an increase of 34,485 carcases, the aggregate figures being the best for some years. It is commented that the decline at Gisborne was due to the falling off in cattle and pigs, while at Tokomaru Bay there was an increase in all stock except pigs. The loss in the freezing department is ascribed to the further drop in the values of by-products and increased costs. f Loss From Directorate The report explains that the profit of £4558 was obtained after paying a 10 per cent rebate on stock and wool commissions, writing ofi; £12,798 for depreciation, and providing £6796 for income and social security taxes. Reference is made to the death of one of the directors, Mr. Howard Ken way, who had been on the directorate since 1911 and had served as deputy chairman since 1930. The vacancy was . filled by the election of Mr. O. T. Williams.

In accordance with the articles of association, Messrs. G. M. Reynolds, M. L. Holden and O. T. Williams retire by rotation but offer themselves for re-election. The auditors, Mr. H. E. Dodd and Messrs. Watkins, Hull, Wheeler and Johnstone, retire, but the latter are eligible for re-election and, together with Messrs. Morris, Duncan and Gyllies, will be nominated.