JUBILEE BONUS

Otago Daily Times, Issue 26619, 15 November 1947, Page 8

JUBILEE BONUS

MOSGIEL WOOLLEN COMPANY SEVENTY-FIFTH YEAR ENTERED The Mosgiel Woollen Factory Company, Ltd., is now in its seventy-fifth year of existence and, in recognition of this fact, it was resolved at the seventy-fourth annual meeting yesterday to pay a jubilee cash bonus of 10s a share to existing shareholders and to pay a bonus equivalent to three weeks’ wages to all members of the staff on the company’s pay roll at September 30 last. Payment of the usual dividend of 3 per cent, from trading and 3 per cent, from revenue from investments, making a total of 10 per cent, for the year, was also approved. After payment of the interim dividend of 4 per cent, on April 6, absorbing £3815, providing £IB,OOO for Government taxation, £7032 for depreciation and transferring £SOOO to reserve, the company was left with a balance to the credit of the profit and loss account of £29,264. After payment of the dividend and bonus approved at the annual meeting, the amount remaining to be carried forward was £23,542. Chairman’s Address In moving the adoption of the seventy-fourth annual report and balance sheet, the chairman, Mr J. S. Hislop, said that he regretted having to report a slight decrease in production for the year. This was entirely due to the impossibility of increasing the female staff at the mill. “The outlook is, however, improving and we hope early next year to be able to obtain our share of imported labour under the Government immigration scheme.” said Mr Hislop. “ This will mean that we will have to find accommodation for these employees, and your directors are at present con-, sidering the best way to bring this about. “Referring to the balance sheet and profit and loss account, I desire to explain the variations compared with last year’s figures. Paid-up capital remains at £95,380. After again placing £SOOO to general reserve, this account now stands at £80,588. Depreciation reserve has been transferred from* the. assets’ side, where it appeared as a deduction from fixed assets. The amount is unaltered ,at £43,348. Dividend equalisation fund remains at £IO,OOO. Employees’ benefit fund, at £14,900, is down by £529, this being due to current pension payments to retired employees exceeding the interest receipts from the fund’s investments. Sundry creditors at £6725 are up by £846. Owing to a reduction in our assessable income, it has only been necessary to provide the reduced amount of £lB/)0 for taxatiQn. making a reduction in this accofint of £13,826, which now stands at £66.623. “On the assets side, land, buildings and machinery at £64,081 show a reduction of £6710, there being 0n1y£322 added to this group during the; year. As in past years depreciation has been written off in keeping with rates allowed by the Income Tax Department. New Zealand Government loans and other investments at £103,501 show a slight reduction of £350. Cash on deposit and tax paid in advance at £70,000 are down by £21,014. Sundry debtors and stock at £92,340 are up by £18,497. The increase in this group is due chiefly to a substantial sum owing to the company by the Government being the balance on wool subsidy for last season’s wool purchases. Trend of Asset Groups “ In the profit and loss account gross profit at £54,898 is down by £12,282, whilst the net profit at £14,646 shows a reduction of £2992. So much for the past. I shall now in a general way give the directors the anticipated trend of the three main asset groups. “First is that of fixed assets. The infinitesimal addition during the past year should not be taken as the trend in the future. As far as we can gauge future plant and building values, our present commitments for buildings and plant will absorb approximately £IOO,OOO. During the year a contract was let to William McLellan, Ltd., of Dunedin, for the immediate erection of »the Dunedin unit. There will be approximately 23,000 square feet in this building when completed. The building will be to the latest design, providing for ideal working conditions comparable with any industrial building ih New Zealand. The plant for this unit will be partially provided from Mosgiel together with modern machines as available from overseas.

“ Overseas plant deliveries are still very obscure, but we are hopeful of „ certain deliveries during the current financial year. Our recently-appointed factory manager for Mosgiel is at present in Great Britain, thoroughly investigating the position of our orders, and new machinery which is being developed by British manufacturers. The wisdom in the past in keeping our reserves in a reasonably liquid state will now bring its reward in the free availability of the funds to finance this - major development. The space released at Mosgiel due to certain machinery transferred to Dunedin will be occupied by new machinery in developing our weaving department. To this ena all available workers in Mosgiel will be fully occupied. As mentioned previously, plans are now being _ prepared for the erection of a hostel to "accommodate immigrants offering from overseas. “ With regard to investments—as the above extensions materialise this group for some time will contract. “The.major item in the current assets group is that of stocks. Here the future is very obscure. For the past year the New Zealand Government subsidised the increase in the price of wool. This practice, we are informed, will again apply to the further increase in wool values at recent sales. The overseas market for wool is very strong, and in the absence of a united universal deflation and devaluation policy, I consider the present values will hold throughout this season. “I would like to express the directors’ appreciation of and thanks for the valued services rendered dringthe year to the company by Mr Wood and the staffs at Mosgiel' and Dunedin. In a few months Mr Wood will have completed 40 years of masterly service to this company, and much could be said of his great contribution in placing the company in the flourishing and foremost position it enjoys to-day. For this we are most appreciative, and welcome this opportunity to voice our appreciation.”

Staff Bonus Approved The motion was seconded by Mr A. Ibbotson, who said that, although production was down, there was a good reason. As labour became available this position would remedy itself. He was pleased that the jubilee bonus had been extended to the staff, as the company had always had a reliable and efficient staff. While he was pleased to hear bf the planned expansions, which meant that the company was progressing, it was well that careful thought should be given to the matter of drawing on reserves. In the capable hands of the board of directors he was sure that this would be done judiciously. - The retiring directors, Mr J. A. Roberts and Mr T. C. Coull, were reelected unopposed, as were the auditors, Barr, Burgess and Stewart. In expressing thanks on behalf of the staff for the bonus and the compliments which had been paid, Mr W. L. Wood said that it was pleasing to know that there were at present 20 people on this superannuation list who had had an average service of 40 years. There were also 50 people on the staff who had been with the company for an average time of 30 years. He added that while the wages bill for male adult workers had increased in the ratio of 100 units to 360. units since 1910, the prices had increased only from 100 units to 180 units in the same period. (Extended report by arrangement.)