N.Z. FARMERS’ CO-OP.

Sun (Auckland), Volume IV, Issue 1078, 16 September 1930, Page 11

N.Z. FARMERS’ CO-OP.

REDUCED NET PROFITS NO ORDINARY DIVIDEND Special to THE SUN CHRISTCHURCH, Monday. The report and statement of accounts of the New Zealand Farmers’ Cooperative Association for presentation to the annual meeting of the company (to be held on September 27), have been issued. The report states that the gross profit for tlie year amounted to £190,743, and the net profit to £19,031, which with the balance of profit of £ 19,102 carried forward last year, showed £38,164 to the credit of the profit and loss account. The diminished gross profit was due partly to : reduced commissions on the sales of wool, livestock, etc., owing to the j i greatly reduced prices, and partly to j , the consequent withdrawal from sale ! j of a proportion of the usual wool and j livestock turnover. The diminished net profit was partly [ due to the same causes, and partly to i the extra provision which it had been ! deemed advisable to make for possible j contingencies in connection with adi vance accounts, because of the seriously decreased returns of some clients j and the unknown future of prices of j farm products. ; The turnover and service of the meri ehandise departments had been well j maintained and improved during the year. It was recommended to shareholders that the balance to the credit of tho profit and loss account be dealt with as follows: The transfer of a further sum of £20,000 to the special reserve account inaugurated two years ago, which would then stand at £40,000; the transfer of a sum of £5,000 to the reserve against alterations and plant account; the payment! of one year’s . dividend of 6 per cent.! on the first preference shares, amount- \ ing to £9,000: and that the balance of j £4,164 be carried forward.