A PROSPEROUS BUSINESS.

Taranaki Daily News, 17 May 1921, Page 5

A PROSPEROUS BUSINESS.

i BOROUGH ELECTRICAL DEPARTMENT.

YEAR’S NET PROFIT £8922.

In an addition to his annual report, the general manager of the New Plymouth Borough Council (Mr. F. T. Bellringer) deals with the accounts of the electricity department, and figures quoted show that- the undertaking is in a sound position. “The salient feature,” the report states, “is contained in the net revenue account, which shows that the net profit for the year, after making full allowance for interest, sinking funds, depreciation and repairs and renewals, amounted to £8922 2s lOd, compared with a net profit for the previous year of £6524 Ils 9d. As the accounts contain a large amount of detail the information contained therein is summarised as follows:

CAPITAL ACCOUNT. The capital expenditure at March 31, 1920, was, exclusive of scheme E2 extensions now under construction, £BB/078 18s sd; hydro-electric extensions, £26,275 15s lOd, a total of £114,355 14s 3d. The capital expenditure during the year was: Exclusive of extensions scheme E2, £4514 ss; hydro-electric extensions, £18,324 3s 7d; a total capital expenditure of £137,194 2s lOd.

TRADING ACCOUNT. This account shows a net profit of £1297 19s 9d, compared with a net profit the previous year of £540 5s 4d, a very satisfactory result, considering the lack of facilities at present for carrying on a business of this kind.

REVENUE ACCOUNT. The income for the year amounted to £23,180 Is fid, compared with an income for the previous year of £18,871 Is Id, an increase of £4309 0s sd. The increase for the year in round figures is £1862 in excess of the average increase for the previous three years, although a large amount of business has had to be declined owing to the plant being very much overloaded. The total working expenses amounted to £6463 7s 9d, compared with £5lOB 16s lOd for the previous year, being an increase of £1299 10s lid. The gross profit transferred to net revenue account amounted to £16,711 13s 9d, compared with £13,702 4s 3d for the previous year, an increase of £3OOO 9s 6d.

NET REVENUE ACCOUNT. As previously mentioned, the net profit amounted to £8922 2s lOd, compared with £6524 Ils 9d for the previous year. This would have been £649 14s lOd more had it not been for the extra overhead charges payable upon unproductive capital. The unproductive capital will naturally increase until the hydro extensions are completed and brought into use. It is to be expected, therefore, that for the next two or three years at least the net profit will be a good deal less than it has been for the past year.

GENERAL.

The following statement shows how the total profits depreciation and renewal funds have been appropriated:— Total profits to date, £29,975 Ils lOd; total depreciation, £20,811 6s 4d; total renewal fund, £13,939 7s Bd.—Total, £84,726 5s lOd. This has been appropriated as follows: —Capital expenditure for which additional loans would otherwise have been required, £34,095 16s 3d; transfer to general account in relief of rates,’ £22,235 10s Id; stock and stores in hand, £6528 0s sd; cash in bank, £4695 4s Bd, a total of £67,554 Ils sd. Less difference between sundry creditors and sundry debtors and balance suspense accounts, £2828 5s 7d; total,'. £64,720 5s lOd.

The result of the year's operations is very gratifying, and is such as to reflect the greatest credit upon the electrical engineer and his staff. I dealt very fully in last year’s report with the difficulties under which the staff were working owing to the machines having to be worked under a serious overload without any stand-by plant being available in case of emergency. These difficulties naturally increased during the year, and no relief can be looked for until the hydro-electric extensions are completed.