N. Z. Farmers Co-operative Distributing Co.

Horowhenua Chronicle, 30 November 1912, Page 2

N. Z. Farmers Co-operative Distributing Co.

ANNUAL B-EPOBT.

GOOD FUTURE PIIOSPJEGTS

The annual report of tho directors of tho N'ew Zealand 00-operative Distributing Company, Ltd., which is to be presented at the annual general meeting of shareholders to l>e hold in Wellington, on December 13th, states:—

The total not profit for the year, after making provision for liad debts and writing down plant and office furniture necount, is £913 4s, which is sufficient to enable the directors to wipe off the expenses accounts incidental to the formation and establishment of the company, and then "have a satisfactory credit. The company therefore stands to-day clear of all encumbrances, and in a financially strong and profit-earning position.

During the past five years .n satisfactory and increasing rate of profit lias been attained, while tho percentage of expenses on tho total yearly earnings show n marked decline, as is shown by the following figures:—looß, 91.28 per cent: 1009. 92.G0 per cent; 1910, 77.17 per cent: 1911, 79.90 per cent: 1912, 71.70 per cent. It will thus be seen that we have in four years effected a saving of 17 per cent, in the general administration of the business, which much he considered very satisfactory to all concerned. There has been a steady increa.se in tho total sales from year to year, and the ratio of profit has been gradually rising. Several dominion agencies controlled by the coinjNUiy have, in a large measure, been responsible for the high earning power of tho business.

Your directors offer their congratulations to the shareholders on the exceptionally good future prospects of the company. Now that our financial position warrants it, it is proposed to considerably extend our business, and special stops will be taken in variou directions to give effect to this policy. It is not proposed this year to recommend the payment of a •dividend on capital, the major portion of the past year's profits heing necessai'y to extinguish the, flotation and early losses inseparable from the establishment of any new business, and particularly one of this character. It may, however, be pointed out that shareholders would have received a dividend on their shares fully twelve months earlier had it noe been for the loss of the sum of over £1000 (apart from the .amount of compensation actually received) through the depreciation of tho lmse of the Victoria street promises owing to the operations of the State Coal depot and which has had to be met out of the profits of the past few years. Your directors consider that a fair portion of tho remaining available credit should he distributed I>y way of bonus to those who consign to the company, and thus encourage this department of tho business, for which every facility exists in premises and staff for a large increase.

As the whole of future profits will bo available for distribution, shareholders may expect, with ovovy confidence, that dividends on capital will bo both ample and regular. Your directors recommend that the hbalancp to the, credit of profit and loss account be disposed of: Ist— Bonus coupons for the financial yenr ending 30th September 1912, be redeemed on the following basis: — (.a) TCobntfi to shareholders, ten per cent.; (b) rebate to non-shareholders seven and a half per cent. 2nd.— Bonus to staff, the allocation of which bo left to directors. 3rd.— Balance to bo carried forward to dividend on capital account.

It is proposed' to issuo the 28(3 forfeited shares at a premium of five shillings each to existing shareholders, preference to lie give-ii to those holding not more than live shares. Applications to be sent in before 3Lst day of January, 1913. As soon as these shares havo been all taken up then the calls at present paid on saaue, namely, £112 Gs 3d, be set aside to form the nucleus of a reserve account. Your directors propose to issue new shares with a minimum of live in number and at a premium of 10s per share. .During the coming year an extraordinary general meeting will bo convened to consider the advisableuess of amending the articles of .association (o permit the company to pay a dividend on capital up to 10 per cent., in lieu of the present provision restricting the maximum dividend to "> per cent. In addition to the bonus coupons issued with account sales for consignments to the company, thus providing the means of obtaining temporary accommodation without delay or unnecessary formalities. Since the prosperity of the company. Your directors, both past ami pre.senl. have gratuitously given their attention to the Company's affairs, but a proposal will be submitted to you in general meeting to grant a .small sum to establish the principle of an annual honorarium.

The other benefits acorn ing from the company's operations should not beb lost sight of. The commission rates would have been raised considerably by proprietary firms had not the company afforded the necessary protection. During the year the company's suppliers have saved hundreds of pounds, by reason of not having been charged the "receiving and delivery" charge, as levied by all other auctioneers hero, and, by judicious forward contracts and direct importations, these who havo purchased through the company have been well served. Your directors urge m>oll shareholders to

pass their business through tho company, which will l>e to their immediate bouoiU as well as indirectly the property of the company. Your directors tender their hearty thanks to bile staff for their untiring efforts on behalf of the company during the year. This report, together with the balance shoot, will bo considered by the shareholders in general meeting, and your directors invite you to be represented thereat, either personally or by proxy. The retiring directors are .Messrs .). Tlalsillie, A. P. Alport, and Alex. Strachan, All of whom, being eligible, offer themselves for re-election. Nominations of directors must be lodged with the secretary ten days clear bebl'ore the meeting. The retiring auditor, Mr I). McKay. P.A. offers himself for re-election. Sluiresoldovti may vote either personally or by proxy. Tho person appointed as proxy must lie a member of the copany. Proxy forms must be lodged at the registered oflice of the company at least IS hours prior to the time of meeting. Tho company's articles of association provide that no member .shall bob entitled to be present at tho meeting, or <o vole, either personally or by proxy, whilst any call due on shares held by him remains unpaid. The report is duly signed by Mr J. (!. "Wilson (Chairman , ) an<l Mr Herbert .)'. I'ichards tn director).