Todd Motors Corporation

Manawatu Times, Volume 64, Issue 305, 27 December 1939, Page 2

Todd Motors Corporation

TAXES MORE THAN HALF INCOME At the second annual general meeting of shareholders of Todd Motors Corporation, Limited, Mr. Charles Todd, chairman of directors, moving the adoption of the report and accounts, said the net profits, subject to income tax and social security tax, of the operating companies were; Todd Motors, Limited, £111,935 18s 6d, and Todd Motor Industries, Limited, £5116 5s Bd, totalling £116,152 4s 2d. Provision for income tax and social security tax absorbed £51),335 la 9d, or more than half of the total income. This left a net profit for both operating companies for the twelve months ended September 30 of £56,817 2s s<L* Of this sum £30,000 was received by this company in May, and the balance of the net profits, totalling £26,817 2s sd, was received on November 15 last. Trade expenses for the financial year amounted to £2Bl 11s 2d, including £250 for annual license; £750 was required this year to pay social security tax on tho £15,000 allocated at last annual meeting m to the preference dividend equalisation account. It was recommended that £425 be provided for directors’ fees for the full year. From the £30,000 received in May, £15,900 wwe placed to the credit of tho preference dividend equalisation account. This, together with the £15,000 from the previous year's profits, increased this account to £30,000, thus securing the sum required to pay two years' preference dividends as provided for in the prospectus. A dividend for the half-year of 6 per cent, per annum was paid to the preference shareholders on May 15, which required £7167 2s Id, and 6 per cent, per annum for the half-year to tho ordinary shareholders, which required £7500. After deduction of these half-yearly dividends and the contribution to tho preference dividend equalisation account, £25,693 9s 2d was available for distribution. The directors recommended a final dividend of 6 per cent, per annum for the half-year ended November 15, 1939, to preference shareholders, requiring £7125 (£7500, Jess £375 social security tax), and a final dividend of £17,812 10s (£18,750, less social security tax £937 10s), for the half-year to the ordinary shareholders, making a total dividend of 10J- per cent, to ordinary shareholders for the year, leaving a balance of £753 19s 2d to be carried forward. There were no bills payable, and credit balances were held at the bank. During tho year all preference shares had been allotted and the capital was now fully paid up. The share capital of the operating companies and the capital reserve are the same as last year.

Tho buildings, plant, equipment and furniture had been depreciated on a liberal basis. The total amount, however, showed an increase on last year of £269 10s sd, accounted for by extra plant installed at the factory at Petone. Stocks had again been prudently valued. The total holdings of used cars and trucks had been taken into stock at £4590 10s, which represented less than 14 days' normal turnover of such vehicles. Motor Trade Outlook.

The chairman said that in normal times the future could be gauged with some degree of accuracy and confidence. With a major war raging, prospects could only be a guess at best. Add to this the general upset which trade generally was suffering from, it must be acknowledged that executives had heavy responsibilities at the present time. Fortunately the company, based as it was on adequate capital and ample reserves, was in a position to meet changing circumstances as they arise. On the declaration of war, and consequent restriction of sales of petrol, the demand for cars dropped to a low level. Business had since picked up and demand was returning to normal. This upward turn in demand was a healthy sign, and it was unfortunate that, along with many others in the industry, they were faced with a shortage of stocks arising from the restrictions imposed under the import licensing regulations. It was perhaps not recognised as widely as it should be that the motor trade was now one of New Zealand's foremost racking industries, making important contributions to the coun try's economic and social welfare, and, above all, being a very large employer of labour. The impact of import restrictions had already been felt keenly, and through-

out the country a large number of skilled tradesmen had had to be dispensed with. It is to bo hoped that relief can bo secured in the way of more ready entry of the required stocks, not only to relieve the manufacturing side of our operations but also to sustain the services of the many retail dealers in all parts of the country. Tho chairman referred to the loss tho company had sustained by the death of Mr. E. P. Yaldwyn, a dirccto. of the company. The meeting stood in silence as a tribute of respect to the late Mr. Yaldwyn. The chariman said the vacancy on the board had been filled bj the appointment of Mr. James Fletcher, of Auckland.