WANGANUI WOOLLEN MILLS

Sun (Auckland), Volume II, Issue 459, 14 September 1928, Page 12

WANGANUI WOOLLEN MILLS

PROPOSAL TO REDUCE CAPITAL The directors of the Wanganui "Woollen Mills, Ltd., report for the year ended June 30 a slack year “aggravated by the mildness of the present winter.” But “the company’s business has shown considerable expansion.” A valuation of stock by Mr. H. G. Marriner, of Christchurch, was in excess of values standing in the company’s books. Buildings and plant have been well maintained, and generally the mills are reported as now in excellent working order. The profit and loss account shows a gross profit of £15,780, as compared with £37,767 for last year; and a net deficiency of £1,584, as against £15,479 last year. Sales increased 38 per cent, this year despite an unfavourable winter trade. Overhead charges have been considerablvreduced and econmies have been effected by installation of labour-saving machinery. The directors consider that “the time has arrived when the losses of the past should be dealt with. The heavy cost of initial establishment, flotation expenses, high cost of plant, and machinery purchased during the boom period, and loss on working and trading accounts during the first years, when the company was, as it were, finding its feet; these now amount to a huge total.” The directors therefore proposed to “cut the loss,” and advise that this be done by reducing the value of the £1 shares to 10s, thus reducing the paid-up capital to £85,938. The special resolution to be submitted provides for reduction .pf the capital of 200,000 shares of £1 into 200,000 shares of 10s, cancelling paid-up capital to the extent of 10s a share upon each of the 154,202 shares issued.