SUCCESSFUL TRADING

Wairarapa Times-Age, 12 July 1939, Page 3

SUCCESSFUL TRADING

ASSOCIATED MOTORISTS

PETROL CO.

I At the seventh annual general meeting of shareholders of the Associated Motorists’ Petrol Co.. Ltd., held in Wellington, Mr Charles Todd, chairman of directors, occupied the chair. In moving the adoption of the Directors’ report and statement of accounts for the year ended March 31, 1939, the chairman said, inter alia:— Over seven years have gone by since our company decided to enter the field of distributing petroleum products. At that time we were warned by quite a number of well-meaning and friendly leaders in finance and commerce that we could not continue in the petrol business. Our progress since then is the answer. The achievements of this company have redounded to the benefit of the retail trade and the many motorists in New Zealand. . . . For the year ending 1934 we sold 5,847,695 ' gallons of petrol. In 1939 our sales were .11,319,852 gallons, showing an increase of 5,472,157 gallons. In 1934 the money value of our sales was £464,332, In 1939 this figure had increased to £1,127,669, an advance of £663,337. Total assets now amount to £323,349. Of this, land, plant and other tangibles other than stock, cost £227,'796, written down by £101,831. The book value is now therefore £125,965, as shown in the balance sheet. Sundry debtors totalling £103,368, show an increase of £76,719. This is accounted for by adopting the same credit terms as our competitors. Our resellers appreciate this concession. . . . Net profit for the year amounts to £51,014, after allowing for taxes (other than petrol tax) amounting to £53,091. After allowing for the profits from kerosene and lubricating oil, the profit on petrol is less than one penny per gallon on the total of 11,319,852 gallons sold. The net profit per gallon for our six years’ trading is .6815 of a penny. Stated in relation to turnover the profit is £4 10s per cent of sales, and for the total period of trading—6 years—the percentage of profit averages £3 per cent. Working on such close margins it will be realised that a relatively small reduction in the turnover would convert the profit into a loss, so it is the concern of all who recognise the value of this New Zealand owned and New Zealand operated company to give it-their practical support. During the year we were fortunate in purchasing two cargoes on an exceptionally low market, both as to price of petrol and freight. This is reflected in the profit. Landed costs have since risen, which will reduce the profit per gallon in the coming year.

‘Tn your Directors’ report it was proposed that a dividend of 10 per cent, as provided for in our constitution, be paid to preference shareholders (absorbing £12,991 10s 9d), and the balance, after carrying forward £7,421 16s 3d in accordance with the Articles of Association, belongs to the ordinary shareholders, and is available for payment of dividend to them.” . . . "On behalf of your Directors I express appreciation of the work of the management and staff during the year, and in doing so I would like to make particular reference to our secretary (Mr L. G. MacMillan), and sales manager (Mr J. R. Haigh), who are rendering such excellent service.” The Directors’ report, balance sheet and accounts, and report of the company’s auditors for the year ended March 31, 1939, were approved and adopted by the meeting, and dividends to holders of preference and ordinary shares, as recommended by the directors in their report, were declared.