CAMBRIDGE CO-OP. DAIRY CO., LTD.

Waikato Times, Volume 121, Issue 20257, 28 July 1937, Page 6

CAMBRIDGE CO-OP. DAIRY CO., LTD.

STRONG FINANCIAL POSITION. THE COMPANY’S AFFAIRS. . (Published by Arrangement.) Mr Mervyn Wells, who was reelected unopposed to the directorate, dealt with several aspects of the company’s healthy financial position at the annual meeting on July 23. “There are salient features which I would like to touch on to combat the propaganda which we hear with reference to the stability of the Cambridge Co-operative Dairy Company, Limited, of which you are suppliers,” he said. “If you will refer to your balance-sheet, you will see that the capital issued is £58,G17. Of this amount, the existing suppliers to the company hold 45,252 shares, the balance of 13,365 shares being held toy dry shareholders. Some 700 dry shares will again become qualifying shares through the purchase of the Waikato Valley Dairy Company, in which your company has participated. “More particularly would I stress the strong financial position in which the company finds itself to-day. During the years I have been a member of the board, I have not known of any year in which the company has been in such a strong position, which has steadily improved in spite of the slump.

“If the balance sheet presented today is closely examined, you will find that the liquid position of the company. (and when I refer' to the liquid position I mean, those assets which are readily convertible into cash, less the immediate liabilities of the company, including the bonus of £34,000 you am receiving to-day), is that there is a surplus of liquid asset's over liabilities amounting to £19,301. “On a comparison being made with the same position 12 months ago, we find that the liquid position of the company lias improved by £3036. What will be the ultimate position? Assuming that the fixed assets as disclosed in the balance-sheet would realise their balance-sheet figure, we find that for every share issued by the company there is 23s 3Ad worth of assets to meet each £1 share allotted. “If dry shareholders in the company were bought out at an appropriate time, the position would be strengthened, and the value would approximate 30s 2d per SI share.” Mr Wells also mentioned the fact that the Cambridge Company would toe paying the highest price in the province for butler. He pointed out I hat the payouts appearing in the Dress recently were not the season’s averages over all grades, and carting had not been deducted. The Cambridge Company’s payout was 13.833 d over all grades, after cartage deduc- , lions had been made.