KARRIER'S PROPOSED CAPITAL REORGANIZATION
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mHE report of Karrier Motors, Ltd., J_ of Huddersfield, for the year ended December 31st last has just been issued, and it shows a net profit for the year, after charging all expenses and outgoings, including provision for depreciation and taxation, of £11,877, as compared with a profit of £9,487 in the preceding year. The loss on profit and loss account which was brought forward from 1927 amounted to £338,995.
Under a scheme which has been prepared in collaboration with Sir Gilbert Garnsey, K.B.E., and the preference shareholders' committee, for consideration at a meeting of the company, to be held on October 17th, the company's capital is to be reorganized, and if the proposal be approved it will mean that no less than a sum of £399,490 will be
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written off. Briefly summarized, the proposals set forth in the scheme are as follow :—(1) The arrears of preference dividend unpaid at the date of this scheme are to be cancelled ; (2) the existing ordinary shareholders are to surrender 150,000 shares of £1 'each for cancellation ; (3) the existing preference shares, viz., 248,980 of £1 each, are to be. reduced to 10s. each ; (4) the balance of the ordinary shares, after cancellation of 150,000 referred to above, viz., 250,000 of £1 each, are to be reduced to 10s. each ; (5) thereafter the two classes of preference and ordinary shares will be consolidated into one class, viz., 498,980 ordinary shares of 10s. each, ranking paid passu in all respects ; (6) 1,020 preference shares which have been forfeited are to be sub-divided and consolidated into 2,040 ordinary shares of 10s. each.
The sum which is thus rendered available it is proposed to apply as follows :—By writing off the accumulated debit balance (loss) on profit and loss account as shown by the balance-sheet at December 31st, 1928 (£327,117) ; by writing off the amount standing against preliminary expenses account (116,869) ; by reducing the patent-rights account from £125,000 to £75,000 (£50,000), the balance available for writing off sundry small itetns and providing for contingencies, etc., being 15,504.
After reconstruction the capital of the company will be as follows:Authorized-1,300,000 ordinary shares of 10s. each, £650,000; issued and fully paid np-498,980 ordinary shares of 10s. each, £249,490.