WARINGS.
As anticipated, the annual report of Warings showed drop of about 50 per cent. in .the profits, but there was still a substantial profit for the year of 2120,000, A large transfer to reserve, however, has had to- be made against mortgage debt, as to which the report made the following statement :—
" Prior to the year under review, an important sale of property not specifically charged under the Debenture Trust Deed had been effected, and the proceeds of the sale would-have made a considerable improvement in the company's financial position. Unfortunately, however, the purchasers have not yet completed their payments and the directors have, therefore, thought it prudent to reserve out of profit and loss account £127,585, which. together with a reserve of £45,000 which existed at the beginning of the year, will amount to the whole of the balance of the purchase price and interest due as at January 31st, 1930, in respect of such property, viz. £172,585. This debt is secured to the company by a charge on the property, which has recently been valued by a well-known firm of valuers at a figure which shows a considerable surplus over the amount due. The directors hope that the purchasers will be able to complete the transaction at an early date and 'thereby provide the company with additional working capital and allow the amount of £172,585 to he retrans- ferred to profit and loss account or to general reserve."
No dividend was, of course, recommended for the past year and the balance sheet shows a heavy reduction in cash, which, however, still stands at the fairly large total of 2191,000. The assets also include a loan to the chairman given in 1924 on mortgage on property in the company's occupation, amounting to £34,999, while additions to this loan account during the year (since secured) amount to £74,333, of which £10,041 has been repaid. Accompanying the report was a personal explanation from Lord Waring of the regrettable circular of June 4th last.
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