PROSPEROUS COMPANY

Wairarapa Times-Age, 10 December 1938, Page 5

PROSPEROUS COMPANY

TODD MOTORS CORPORATION.

CHAIRMAN’S ADDRESS AT ANNUAL MEETING.

Moving the adoption of the directors’ report and statement of accounts of Todd Motors Corporation Ltd., at the annual meeting in Wellington, the chairman of directors (Mr Charles Todd) said, inter alia:—

“The net profits of the operating companies. Todd Motors, Ltd., and Todd Motor Industries Ltd., for the financial year were £112,807, after allowing for land tax, depreciation ’and all charges other than income tax. This total is made up from £96,952 earned by Todd Motors Ltd. for the 12 months ended September 30, 1938, and £15,851 earned by Todd Motor Industries Ltd. for the 18 months ended September 30, 1938. For the purpose of synchronising the dates of annual balance of both companies, Todd Motor Industries Ltd. balance date has been brought forward to September 30, and consequently 18 months' operations of this company are shown. This compares with £110,273 earned by both companies for the 12 months ended September 30, 1937. “For the six months ended September 30, the profits totalled £38,677. Of this sum, provision of £16,024 has been made for taxation. This leaves a balance of £22,653 which has -been transferred to the corporation. ... A balance of £4,445 is available for distribution as recommended by the directors, £3OO for directors’ fees for the six months, and £4,145 to be paid in dividends to ordinary shareholders.

“It will be noted that the last halfyear’s results of the operating companies do not show profits equal to the half-year ended March 31, 1938. The winter months are never as good as the summer for the sale of cars, and, in addition, the war scares and Parliamentary elections retarded sales during the latter period. Still, the net profit of £38,677 for the half-year, subject to income tax, is very satisfactory, enabling your directors to place to the preference dividend equalisation Account a reserve for a full year’s preference dividend in addition to payment of, the required sum for preference dividend for the broken period, and leave £4,145 available for dividend for ordinary shareholders. Remember also that during the year a capital reserve of £43,629 was established out of profits. “Sales of new and used cars are now on an increasing scale, and you will be interested to know that sales of new vehicles for the month of November just passed have exceeded the sales of any other one month of 1938, and on present showings the shareholders can confidently look forward to a profitable year which I anticipate will result in the preference dividend equalisation account being increased to the total of £30.000 as provided in the prospectus, with sufficient to pay the 6 per 'cent- 1 preference dividend, a reasonable dividend to ordinary shareholders, and a balance to establish additional reserve accounts. . . .

“In addition to the original capital of the operating companies, there is now the capital reserve of £43,629 previously referred to. Deferred profits account now stands at £38,464. ...

“During the year very intensive de"velopment has bbbfr made J *in our retailing outlets throughout New Zealand, and the result of this work will be reflected during the present year and- in future years of operation. The company’s agencies—Chrysler, Plymouth, De Soto, Hillman and Humber cars, and Fargo, Commer and Karrier trucks, have during the year enjoyed increasing popularity and are recognised as leaders in their respective fields. “In conclusion, I wish to express my appreciation of the work of the management and staff throughout the year. No business can succeed without the whole-hearted and loyal co-operation of the staff. This co-operation has been of great value to the operating companies throughout the past year.” The motion was seconded by Mr J. M. A. Hott and carried. The following resolutions were passed: —

That a dividend at the rate of 6 per cent per annum to preference shareholders for the period ended November 15, 1938, absorbing £3,104 16s 9d, be declared.

That a dividend of £4145 16s 6d to ordinary shareholders for the period ended November 15, 1938, as recommended by the directors, be declared. That the sum of £15,000 be placed to the credit of preference dividend equalisation account in terms of the prospectus. That the retiring auditors, Messrs Ernest Hunt, Turner and Heslop, be reelected, there being no other nominations.

The following directors were reelected:—Messrs Charles Todd, Edwin P. Yaldwyn, John M. A. Hott, C. P. Todd. D. H. Todd, B. J. Todd and Andrew Todd.