THROUGH A SLUMP.

North Otago Times, Volume CVII, Issue 17170, 29 March 1927, Page 6

THROUGH A SLUMP.

BOQTH macdonald's year. . At a meeting of shareholders of ^ Booth, Macdonald anR Co., at Christchurch, a proposal to reduce the capital to 2s 6d a share was agreed to. . The past year's opeijations resulted in a loss of £25,027 15s 3d. The* report stated that the early months promised well, but a slump set in about April and continued . throughout the year, with the result that saies fell off considerably. New methods and closer accounting in the factories resulted in certain savings being made and greater efficiency, but the earnings werc quite insufficient to provide for the necessary depreciation. In view of existing conditions and the unsatisfactory trend of business throughout the Dominion, the directors felt there was little prospect of early recovery unless drastic methods were adopted. They proposed to write down ordinaxw share capital by a further 7s 6d a share, and to adjust the assets to correspond, by making special provisjon for depreciation of plant, buildings, etc., and for doubtful debts and slowmoving stocks, besid'es absorbing the debit balance carried forward from 1925. When that was done the deficiency would be absorbed and the year's accounts would open with a clean sheet. With reasonably prosperous trading conditions, the directors hoped that they might be able to accumulate reserves and hasten the resumption of dividendpaying.