SUBSTANTIAL PROFIT

Manawatu Standard, Volume LX, Issue 140, 14 May 1940, Page 3

SUBSTANTIAL PROFIT

POWER BOARD’S YEAR. MANAWATU-OROUA AREA. Revenue, of £122,881 and expenditure of £116,479, thus resulting in a * profit of £6339 were 'figures revealed t in the report of the chairman (Mr J. t Boyce), covering the year ended t March 31, 1940, presented at a meet- c ing of the Mamuvatu-Oroua Power ] Board yesterday. From the ])rofit c tins to he deducted a contribution to - capital of £978. ‘ The capital expenditure for the j year amounted to £18,562, the report j added. The new lines completed were . the lines to Oliakea and Pakihikura r (which had been commenced - in the i previous year), the Pahiatua Track, < and Arapata and Taikorea exten- < sions; and much new work lias also J been carried out on lines to cope with the growing loads. The only line to ’ construct .which has been authorised - is Ridge Road; this had been held j up pending authority of the Electri- i city Controller. This has now been ob- j -tained and the work will be proceeded j with as soon as possible. i The board raised during the year < the sum of £25,000 in loans; £IO,OOO 1 of the sum was from an authorisation « obtained during the previous year, j and £15,000 from an authorisation of ( £40,000 obtained 'during the year. The , amount of authorisation still avail , able is £25,000, but.it is-not autici- j pated that any further money will be. i raised for some time, especially while i the restrictions are in operation. The sum of £8313 is still in hand for capital expenditure. The total sinking funds held by the Public Trustee amount to £55,378 and the amount held in the same office for depreciation is £39,261. The board, jias also paid off during the year debentures amounting to £12,234. The position of the board’s indebtedness at March 31, 1940, is as follows -Total loans raised and taken over from Feilding Borough • Council, £590,000; premiums on conversion, £7744 18s 4d; £597.744 18s 4d, less amount repaid, £76,476 10s. Total indebtedness, £521,268 8s 4d. The position of loan repayments and reserves is as follows: Loans repaid, £76,476 10s; sinking funds invested, £55,378 4s 8d; depreciation funds,, £44,334 11s 3d; total, £176,189 5s lid. The number of new connections and additions connected during the is as follow :—New consumers, 157, total 5819; electric ranges, 123, total 1389; water heaters, 178, total 2204; milking motors, 72, total 1415; miscellaneous motors, 213, total 2300; freezing works, 2;, industrial, :14, total 253; others, 5, total 27. INCOME AND EXPENDITURE. The income figures arc as follow, with the increase over 1938-39 shown (shillings and pence omitted): Sales of Current:

The increase in expenditure over the previous year amounts to £13,266; of this amount £7192 is increased cost of power ; and £3249; increase in maintenance, distribution and renewals, represent the main increase. Exclusive of power the estimated expenditure for the year was £57,729, and the actual expenditure was £58,107. Figures for revenue-and purchase of current show : Balance

From„ the above position it shows that the increase in cost of power has been exceptional, but it also shows that ive have obtained a better return on extra power purchased than in previous years, the report adds. The total sales for the year amounted to £9090 compared with £9718 the previous year. This can be considered satisfactory owing to the difficulty in obtaining electric ranges. The amount outstanding at March 31, 1940, on time payment and credit sales was £5338 4s 9d. “It will be observed,” said Mr Boyce, “that .the board has had a very successful year, the balance after providing capital expenditure being £5361. The general increase in the sale of electricity is making a heavy demand on our existing reticulation, from which the main increases in sales are obtained. For extra capital expenditure required on this reticulation the board should now adopt the policy of providing this out of revenue whenever possible, thus avoiding raising further loan moneys, especially during the war period.” - - MEMBERS GRATIFIED. On the motion of the chairman, seconded by Mr J. A. Nash, the report was adopted. The chairman was congratulated on the satisfactory nature of the statement. Mr M. A. Eliott said that the board had been working on safe lines and had shown' a satisfactory profit. He inquired about the position of the trading account, which he said appeared to show ,a very small profit, lie did not think that any ordinary trader would carry, on under those conditions. The' managing-sectetary (Mr K. W. Eglintoh) ' explained that the trading accouiitT-.was - not a true account, but an “'apportionment. .. ;Mr l J- Hodgens, M.P., said that the boitrd 'and the- staff had every reason to be gratified with the result of the

year’s operations. There was ground for gratification in that the board was not faced with the problem of . an. increase in the cost of power and a relative reduction in income. It had paid the board handsomely to buy increased power. >• . . ’ The managing-secretary and the staff were also congratulated • on the manner in which they had prepared the annual report and balance-sheet.

1939-40 Increase Milking 10,569 303 ' Industrial 8,78S 1,002 Freezing works 9,097 307 Water-heating Street and commun11,234 1,232 ' ity lighting ... 1,140 4 Lighting, ! heating' and cooking ... 43,329 3,710 Ohakea Aerodrome 2,020 2,020 Bulk 36,183 5,943 122,364 14,584 Miscellaneous Revenue. Profit on trading • : 164 Rent of dwellings ■ 288 Miscellaneous ... 1 Total , ... 122,818 The increase in sales of current for the year amounts to £14,584 11s 4d. This shows a marked improvement, increases being shown under all headings. EXPENDITURE. ■ The summary of expenditur e is as follows (.shillings and' pence omitted): — ' 1940 1939 Purchase of power. ... Main transmission and 58,372 51,180 distribution ... ... 12,40S 9,780 Renewals and depreciation 6,374 5,752 Public lighting .Management and gen144 94 eral 5,783 815 5,312 Office alterations Interest 21,723 21,120 Sinking fund ... ... 8,24S 7,840 Debentures redeemed 2,134 1,382 Bad debts reserve 250 250 Subsidy on lines ... Unauthorised expendi370 ture 104 22 Miscellaneous charges 120 107 116,479 103,213

Revenue Cost of power available . £ £ £ 1935-36 .. 86,369 36,940 49,429 1936-27 .. 92,054 40,025 52.029 1937-38 .. 101,077 46,455 54,622 1938-39 .. 107,779 61,180 56,599 1939-40 .. 122,364 58,372 63.992