PRODUCERS, LTD.

Otago Witness, Issue 4030, 9 June 1931, Page 12

PRODUCERS, LTD.

ANNUAL MEETINGThe annual meeting of Producers, Ltd., was held last week. The chairman of directors (Mr E. H. Murney) presided. The chairman, in moving the adoption of the trading account, profit and loss account, and balance sheet, stated that it gave him pleasure to report that the company had successfully weathered a year which had seen the foundering of mauy old-established trading companies, many of which had considerable reserves to draw upon. A year' ago the company’s accounts had shown that it had lost nearly the whole of its called-up capital in preliminary expenses, and that the balance was locked up in stock, furniture, and fittings. The company had, therefore, much reason for satisfaction that its balance sheet showed that it had more than held its own despite a year fraught with grave difficulties, and that it had actually made headway. Farmers had been forced through stress of circumstances to cut out anything in the nature of luxuries and mauy were confining their purchases to actual groceries. Horse covers etc., were being made to last another year, no new fencing was being gone on with, and this applied generally to everything in the nature of repairs and renewals. Farmers were not in a position to spend money on furnishing, hardware, or new clothing.. The fall in the price of superphosphate had killed some of the company’s profit during the past year. Another problem which had greatly affected trading was the fact that the year had been noticeable for the tremendous amount of price-cutting which had gone on. Firms had had to reduce stock, because of pressure from the banker, or other reasons. Others had had to fight “ cash and carry ” or other combinations. Sales had been an almost continuous programme with many retailers, warehouses had been thrown open to the public, and so on All of these things mitigated against turnover and profit-making. During the year the manager had realised the possibilities of the Women’s Division of the New Zealand Farmers’ Union as a means of getting into personal touch with the farmers’ wives (who had to be reckoned with when it came to spending money on the household). Miss Finlayson had been appointed as organising secretary, working under Mr A. C. Cameron, and the follnwintr figures snake for thonioelves: Branches increased from six to 39. membership increased from 180 to 911. Miss

Finlayson undertook the buying for the women in the country. The result wag that the last few months, which had been so slack with most businesses, had been the busiest in the history of the com-, pany. Mr Cameron reported to him that, it would be the easiest thing in the world to double or treble the turnover. The question was to make sure of the cash t Although the outstanding accounts had given the management cause for anxiety during the year, a perusal of the balance sheet showed the position to be extremely satisfactory. Very few accounts were more than a month or two in arrears and, with the possible exception of some threes small accounts, none of them gave any reason for concern. The necessity for. closely watching this aspect of the business was not being overlooked. It would be seen that although the turnover wag down considerably, the margin of profit had been greater. Stock had been reduced to £376 18s 9d as compared with £462 Os 2d last year. It would also be noticed that it had been possible to write a reasonable amount off preliminary expenses. It had also been possible to create a bad debts reserve account, which was a wise provision, even although the position of the accounts gave little cause for anxiety. He thought that shareholders would agree that the position was very satisfactory considering the difficulties arising from the economic position of the country. In conclusion, he would like to pay a tribute to the work done by the staff. In his opinion it would be hard to find a better team anywhere, and Mr Cameron was to be congratulated upon his assistants. Mr T. Shaw, who was in charge of the selling, and was working under Mr Cameron’s direction, was always, courteous and attentive, and he could assure both Mr Camero n and Mr Shaw that the shareholders greatly appreciated the work'they were doing. Messrs J. P r eston and R. J. E. Smith, the retiring directors were re-elected. The appointment of auditors and the fixing of directors’ fees were left in the hands of the directors. The directors were accorded a hearty vote of thanks for their work during the year.—Mr A. C. Leary stated that the action of the directors in giving their services free was greatly appreciated by the shareholders.—The chairman, in reply, said that there was no doubt that the company had a very big future. In acknowledging a vote of thanks to the staff, Mr Cameron said that the company had done well to consolidate its position to the extent it had during the year.