CAMBRIDGE CO-OP. DAIRY CO., LTD.

Waikato Times, Volume 121, Issue 20260, 31 July 1937, Page 8

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 £58,617. Of this amount, the existing suppliers to the company hold 45,252 shares, the balance of 13,365 shapes being held by 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 wi’l find that the liquid position of the company (and when I refer to the liquid position 1 mean, those assets which are readily convertible into cash, less the Immediate liabilities of the company, including the bonus of £34,000 you are receiving to-day), is that there Is a surplus of liquid assets 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 has 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 ttiere Is 23s 3jd worth of assets to meet each £ 1 share allotted. “If dry sh.-yeholders in the company were bought out at an appropriate time, the position would be strengthened, and the value would approximate 30s 2d per £1 share.” Mr Wells also mentioned the fact that the Cambridge Company would be paying the highest price In the province for butter. He pointed out tMat the payouts appearing in the Press recently were not the season's averages over all grades, and cartirjgJ had not been deducted. The CamJv bridge Company’s payout was 13.833 d over all grades, after cartage deductions had been made