JOSEPH NATHAN & COMPANY, (LIMITED.)

Matamata Record, Volume III, Issue 144, 7 August 1919, Page 4

JOSEPH NATHAN & COMPANY, (LIMITED.)

New Capital Proposals. The ordinary general meeting of J. Nathan and Co. was held on April 28th, in London- The chairman moved the adoption of the report, and in the course of his remarks said:—During the year under review, the shortage of freight space in New Zealand, as compared with the previous year, has been intensified. Instead of reducing the stock of goods and the amount of produce in store and afloat, the company has been forced to carry even larger stocks than they held last year, to the extent of some £70,000. There has been a further outlay in connection with our Giaxo factories of £20,000, and our book debts have been increased by £II,OOO. Investments in New Zealand War Loan have been increased by £5,000, so that we get a net increase in the assets of £48,000. This has been provided for on the liabilities side to the extent of £26,500 by way of increased capital and profit, and £21,500 increase in the amount owing to ordinary creditors. The advances from bankers show a decrease. THE PROFIT.

The profit for the year, after* making ample provision for depreciation, contingencies, etc., is, as per the printed balance-sheet, £53,161, and the net profit is £44670, from which the sum of £12,500 has been set aside as a provision for land and income tax. If we add the amount brought forward last year, less the final dividends paid in respect to that year, we shall have available for this year £59,837. The interim dividends paid and the final dividends recommended by the directors will absorb, roughly, £19,000. After deducting the £2,000 which it is proposed shall be written off the surrendered rights, we shall have approximately a net amount of £38,800 to carry forward, against £27,000 last year, which will leave us in a position to meet any claims for excess profits. The directors consider the time has arrived when the preferred ordinary shareholders should begin to enjoy part of their participatory rights in the profits to which they are entitled after the ordinary snares shall have received 10 per cent. They therefore recommend declaring dividends at the rate of 8* per cent on the preferred ordinary and 12 per cent on the ordinary, both subject to income-tax, and they hope that the future will enable them not only to maintain this, but to increase same. The Government contract for 2,000 tons of glaxo was renewed for the current New Zealand dairy season. * NEW GLAXO FACTORY COMPLETED. The additional glaxo factory mentioned in last year's speech has been duly completed, and is now in working order. The following dividends were declared : 8i per cent less income tax on the paid up preferred ordinary capital of the company, and 12 per cent less income tax on the paid up ordinary capital.