DAIRY FINANCE COMPANY

Hauraki Plains Gazette, Volume XXXIII, Issue 4424, 7 June 1922, Page 2

DAIRY FINANCE COMPANY

SUCCESSFUL YEAR RECORDED The annual meeting of the Thames Valley Dairy Finance Co., Ltd,, was held on Monday morning last and was piesided over by the chairman of directors, Mr. Geo. Buchanan. ANNUAL REPORT. The directors’ annual report, presented to the meeting, was as fallows: During the past year there have been considerable demands for advances, chiefly owing- to fall in price of butter-fat, and many dairy farmers have been assisted over their difficulties through the aid of the Company. Notwithstanding the increase in bank rate of interest to 7 per cent, in the early part of the Company’s financial year, the operations, for the past twelve months have been quite successful.. This is chiefly due to your directors keeping all available money out on loans. Reference to the balance-sheet and profit and loss account shows that, advances have increased to £11,673 15s Id, against £7588 12s during the prey vibus year. A further allotment of 800 shares was made during the year. The amount available as profit is £587 9s, the allocation of which the directors recommend as follows.: Payment of a dividend on the paid-up capital of 9 per cent., absorbing £309 7s 6d; payment of a b’dnus on paid-un capita! of 3 per cent,, absorbing £lO3 2s 6d: to transfer to Reserve Fund £lOO, leaving a balance of £74 19s, The retiring directors for this year are Messrs. L. E. Cassrels and W. Montgomerie, both of whom are eligible for re-election. You will be called upon at the annual meeting .to elect, two directors and to appoint an auditor. BALANCE-SHEET. The balance-sheet showed the assets to consist of advances to the value of £11,673 16s Id. The liabil-i ities consist of paid-up capital, £3487 5s ; reserve fund account, £365 ; Bank of New Zealand, £6596 16s 10d ; deposit account. £6OO ; accrued interest on deposits, £l4 .2s 7d ; sundry deh - ors, £23 Is 8d; and profit and loss, £587 9s. The profit and loss- account showed the receipts to be £1163 5s 7d and the expenditure £576 17s lOd, thus leaving a balance to profit an I loss appropriation account ot £586 7s 9d.

The chairman said that during the past year the directors Ihiad had to be very careful in the choice of securities they accepted. In a rising market it did not require so mucn watching as in a slump time.. He fell sure .that the securities were’-safe, and that the' financial position was sound arid one to be proud of. The demands for money during the past year had been so great that the directors had to turn down a large number of applications. The overdraft had been kept, at its limit),, so that the earning power of the share capita l was as great as could be obtained. He felt sure the shareholders would be well satisfied with the results obtained. The directors had kept, all the money invested, and always had. a waiting list of applications for money. This fact had tempted the directors to discuss the matter of issuing more share capital, and this would 'be brought before the meeting later. • Mr. de Castro complimented the directors on the position shown', but expressed the opinion that it would be advisable to build up as big a reservefund as possible. He moved, as a recommendation to the directors, that the interest accruing from the amount of; the reserve fund be placed to the credit of the reserve fund. This was seconded by Mr. Gillman, and after discussion was cai-ried. In discussing the growth of the business the chairman said that the advances last year showed an increase of nearly fifty per cent. The issue of further share capital enabled the directors to take advantage of the whole of; the overdraft allowed by the bank. The extra interest paid to the bank this year -was £216 more than last year. While some pit the items in the expenditure were greater than last year he could assure the shareholders it was necessary or it would riot be so. The report and balance-sheet was then adopted. DIRECTORS AND AUDITOR.

Messrs Montgomerie and Cassreis were re-elected as directors and Messrs English and Luxford reappointed auditors. HONORARIUM AND BONUS. On the motion of Mn. 19. Edwards, se onded by Mr. W, J. Byrne,, the chairman was granted an honorarium O|f £l5 15s, the directors £lO 10s, with a bonus of £2 2s, and the secretary a bonus of £lO. ISSUE OF SHARE CAPITAL. Mr. G Buchanan moved that the issue of a further 3000 shares be made by the directors, where thougnt advisable by them, such shares to oe issued at a premium. In seconding the proposal, Mr W. D; Nicholas said he felt sure that even with the additional .-Shares and a further £2OOO overdraft from the bank, if it could be obtained, the directors would have rio difficulty in keeping the whole of the money invested. He traced the history of the company since its inception. A few years, back the demand for money was so great that the directors went joint ami severally liable to the bank for a £2OOO loan. Last year the demand was so great that numbers of applications bad to be turned down just for the want of. ijiinds. The district in which the. company was operating was advancing so rapidly that he considered even if the shares now proposed to be issued were doubled the directors should have no difficulty in keeping the whole of its funds fully invested. The one great feature to bear in mind was that the company was materially assisting production, and many farmers ip this district who had received assistance were to-day much further advanced than they would have been. Af|ter some further discussion on the matter the proposal was carried. On the motion of Mr, E. E. Gillman, seconded by Mr. H. Hare, a hearty vote of thanks was accorded to the

directors, Messrs. G. Buchanan, P. RHubbard, W. D. Nicholas, W. Montgomerie. and L. E. Cassrels, and also the secretary, Mr. W. H, Blakeway, for the good work done duripg the past year.