£l0,000 PROFIT FROM WAITEMATA POWER

Sun (Auckland), Volume I, Issue 177, 17 October 1927, Page 13

£lo,ooo PROFIT FROM WAITEMATA POWER

HALF-YEARLY STATEMENT With an estimate of £IO,OOO profit for the year revealed in the report of the acting-treasurer, Mr. A. Main, the Waitemata Power Board members this morning had cause for jubilance. “Very satisfactory,” was the comment of the chairman, Mr. J. W. Hayden. The board was in the happy position of being able to put something before its ratepayers that it had jio need to be ashamed of. It would be able to promise definitely to reduce its charges for current next March. The report stated: The revenue account shows an estimated profit for the half-year ending September 30, 1927, of £.405. If the sales of current for the next six months are on a par with the last six months, I conservatively estimate a profit for the 12 months’ operations of £IO,OOO on the present scale of charges. The sum of £11,500 for the first year’s interest on the £200,00 loan was available for capitalising immediatelyq the loan was raised. The amount of £7,302 was paid to March 31, 1927, in interest on the; £200,000 loan and interest on bank overdraft loan account against hypothecated debentures. This has been capitalised, leaving a balance on April 1, 1927, of £4,198 for capitalising this year. A sum or £2,084 has been capitalised to September 30, 1927, and there is still a balance of £2,114, which can be capitalised. The item, interest £3,243, in the revenue account, could have been further reduced by the amount of £2,114, and the estimated profit increased accordingly. It would, however, he inadvisable to do so, as capitalising £2,084 in the first halfyear and capitalising £2,114 in this next half-year will give a better indication to the board of the progress over these two priods. The balance of £30,000 of the original loan of £200,000 will be lodged by the A.M.P. Society with the Bank of Nev/ Zealand before March 31, 1928, against the board’s hypothecated debentures. The board, before the end of this financial year, will have .to consider the creating of depreciation and renewal funds, added the report, which also advocated the formation of a Legal and Finance Committee to expedite the work of the board.

The revenue account will give everyone on the board an indication of the tremendous growth during the. last half-year. This growth is continuing, and the members of the board must realise by these figures that they are a large board with very large aperations. The report was received and discussion was deferred.