TODD MOTORS

Wairarapa Times-Age, 15 December 1939, Page 3

TODD MOTORS

CORPORATION GENERAL MEETING. DIVIDENDS FOR THE YEAR. The second annual general meeting of shareholders of the Todd Motors Corporation Ltd., was held at the registered office of the company, Wellington, on December 11. 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 November 15, 1939, the chairman said, inter alia: —

The net profits, subject to income tax and Social Security tax, of the operating companies were: Todd Motors Ltd., £111,035 18s 6d, and Todd Motor Industries Ltd., £5,116 5s Bd, totalling £116,152 4s 2d. Provision for income tax and Social security tax absorbed £59,335 Is 9d, or more than half of the total income. This leaves a net profit for both operating companies for the past twelve months ended September 30, 1939, of £56,817 2s sd. Of this sum £30,000 was received by this company in May, and the balance of the net profits, totalling £26,817 2s 5d was received on November 15 last. Trade expenses for the financial year amount to £2Bl Ils 2d, including £250 for annual licence. £750 was required this year to pay Social Security tax on the £15,000 allocated at last annual meeting to the Preference Dividend Equalisation Account. It is recommended by the directors that £425 be provided for directors’ fees for the full year.

From the £30,000 received in May, £15,000 was placed to the credit of the Preference Dividend Equalisation Account. This, together with the £15,000 from the previous year’s profits, increases this account to £30,000, thus securing the sum required to pay two years’ preference dividends as provided for in the prospectus. A dividend for the half year of 6 per cent per annum was paid to the preference shareholders on May 15. which required £7,167 2s Id and 6 per cent per annum for the half year to the ordinary shareholders, which required £7,500. After deduction of these half-yearly dividends and the contribution to the Preference Dividend Equalisation Account, £25,693 9s 2djs now available for distribution. The directors recommend a final dividend of 6 per cent per annum for the halfyear ended November ,15, 1939, to preference shareholders, requiring £7,125 (£7,500 less £375 Social Security tax), and a final dividend of £17,812 10s (£18,750 less Social Security tax £937 10s), for the half-year to the ordinary shareholders, making a total dividend of 10J per cent to ordinary shareholders for the year, leaving a balance of £755 19s 2d to be carried forward. In normal times the future can be gauged with some degree of accuracy and confidence. With a major war raging, prospects can only be a guess at best. Add to this the general upset which trade generally is suffering from, it must be acknowledged that executives have heavy responsibilities at the present time. Fortunately our company, based as it is on adequate capital and ample reserves, is in a position to meet changing circumstances as they arise.

The report was adopted and the following resolutions were passed:— That the transfer of £15,000 in May last to the credit of the Preference Dividend Equalisation Account be confirmed. That the half-yearly dividend of 6 per cent per annum paid to the preference shareholders in May last, absorbing £7,167 2s Id, and the half-yearly dividend of 6 per cent per annum paid to the ordinary shareholders in May last, absorbing £7,500, be confirmed. That a dividend of 6 per cent per annum for the half year ended November 15, 1939, as recommended by the directors, absorbing £7,125, be paid to the preference shareholders, and that the sum of £17,812 10s be paid as dividend to the ordinary shareholders for the half year ended November 15, 1939, as recommended by the directors, making a total dividend of 101 per cent for the year.