The Scotsman – Tuesday 29 March 1898
Offer of Debenture Stock
The Denaby and Cadeby Main Collieries (Limited)
Prospectus
The Company was incorporated on 8 August 1893
the under 95,050 debenture stock now offer for subscription (which is not been underwritten) is issue for the reduction of existing liabilities, and to provide for the rapidly increasing business of the Company.
No ordinary shares are offered for subscription, and all the Preference Shares have been issued.
The directors hold 2632 Ordinary Shares, and Members of the Board are directly interested in 2371 additional Ordinary Shares, making a total of £500,300, or 99% of the entire issued Ordinary Share capital.
Mrs William & son of Chester-le-Street, near Durham, the eminent mining engineers and valuers, were called in to report as to the value of the Denaby and Cadeby Main Collieries at the formation of the Company, and they assess the value at the sum of £816,979, their report concluding with the following remarks touching upon the future life of the Colliery:
“There are other outline properties, some of which can only be work to Denaby, and which, we are assured, can be leased as required. This will obviously considerably increase of life in value of the Colliery; and all we cannot include them in our valuation, they will, if required, prolong the life and therefore enhance the value of your property.”
Since this report was made the Company has entered into the following arrangements:
First the lease of the Denaby Colliery has been extended for a period of 40 years, and has now 55 years to run, the Cadeby Lease extending to the year 1948.
Secondly, the Company has succeeded in obtaining a continual reduction in royalties, rentals, and wailings, extending over 1800 acres.
Thirdly, a further 1450 acres of the Barnsley Seam have been secured, and are now being worked by the Company, also the right of working the coals which underlie the Barnsley seam – namely, the Swallow Wood, Parkgate and Silkstone, amounting in all to between 3000 and 4000 acres, or over 5000 acres more coal than when Messrs Armstrong’s first report was issued.
In consequence of these and other important and valuable additions, Messrs Armstrong and Sons revalued the company’s collieries in the month of November 1895 and increase their original valuation by the sum of £103,635.
The foregoing are by no means the limit of further extension, as there are other adjoining properties of large extent, which can be most advantageously work by the Company, and which will be treated for as and when required.
The Company’s present Coal Field extend continuously from near to Swinton station, on the Great Central Railway, to Doncaster, a distance of nearly 7 miles.
The Assets of the Company at the close of its financial year on June 30, 1897, as stated in the books, were:
The Denaby and Cadeby Main Colliery,
with all the fixed plant, machinery etc £1,070,099 3 8
Workmen’s houses, shops, schools, land, hotel,
offices, railway wagons, steamship, shares in the
South Yorkshire Junction Railway, and Sheffield
and South Yorkshire navigation, stocks and stores
in hand, and other floating assets, book debts, cash etc 343,164 14 8
Making a total of £1,413,263 18 4
The fixed and floating liabilities of the Company on the same date amounted to £371,877 4s 6d, leaving a credit balance of £1,041,386 13s 10d
The Denaby Colliery is as every year earned a dividend on the entire Ordinary Share Capital, after providing interest on the Preference Shares.
The average annual profits of the undertaking for the seven years ended 30th of June 1897 amounted to £41,412 10s 6d after providing interest on existing liabilities.
Six out of the seven years referred to were probably the most depressed ever known in the coal trade, but during the year 1897 there was a distinct revival, and this year the improvement is still more satisfactory.
The present output of the Denaby Colliery is over 2500 tons daily.
At the Cadeby colliery (which is outputted from 1300 to 1400 tons daily, the Barnsley Seam was sunk to on the dip side of the South Don Fault. The fault has been crossed, Americans are now been rapidly open in the same to the rise; the call on both sides has proved to be of the full thickness of over 9’6” and of excellent quality.
The output will, it is believed, ultimately reach 5000 tons daily from Cadeby alone or 7500 tons from Denaby and Cadeby combined.
The entire sum of hundred £105,850 already subscribed in respect of the £300,000 debenture stock, has been applied in capital expenditure. Inclusive of this sum, the capital expenditure from July 1893 to 31 December 1897 amounts to £333,953 7s 7d, the principal items being in respect of steamers, houses, lands, schools, hotel, coke ovens, coal washeries, engines, sidings and the general development and extension of the undertaking.
The Company owns 1958 modern workmen’s houses and shops (additional houses are in course of erection), all substantially built on freehold land, or long leasehold, having an average unexpired term exceeding 74 years, the shortest being 55 years. These properties, inclusive of a freehold hotel, produce an annual income of over £11,600; also schools accommodating over 1200 children; a fleet of three steamers, of a total deadweight capacity of 6350 tons (all triple expansion, and class AI 100 at Lloyds) and the fourth of 4700 tons is now on the stocks up, and will be delivered in May next; five tank locomotives; over 30 miles of sidings; 252 coke ovens (more under construction); two complete coal washing plants, third is contracted for with a capacity of 1400 tons per day or 14 hours, and will be at work this summer; also complete plant for the recovery of by-products etc.
The Company is by far the largest importer of coal into Hull, and the following extract from the returns of the Hull Inc Chamber of commerce testify. They also show the progressive nature of the company’s business during the last six years.
The company reserves to itself the right to issue not more than £99,000 of either class of the Stock, and applications will rank for allotment in the order in which they are received.
This Stock is constituted by deed of covenant, dated 14 June 1826, and made between the Company are the one part, and Message J B Pope and C B Pauli (C source folders (of the other part, and indeed, supplemental data, dated third of March 1897, and made between same parties.
Mr Pope and Sir A T Bagge are the present trustees for the stockholders, the latter having by deed dated 16th of March 1898 been appointed a Trustee in the place of Mr C P Pauli, who died recently
The Certificate of the Company’s Auditor, of which a copy is annexed, and Copies of the Memorandum and Articles of Association of the Company, and of the above-mentioned deeds and stock certificates, can be seen at the Offices of the solicitors of the Company.
Applications on the Forms enclosed with Prospective should be filled up and sent to the Sheffield Banking Co Ltd, George St, Sheffield, or Messrs Smith, Payne and Smiths, 1 Lombard St, London EC accompanied by a deposit of 10% on the stock applied for.
If no allotment is made, the application money will be returned in full. In cases where the amount of stuff allotted is less than the amount applied for, the balance of the deposit will be credited in reduction of the amount payable on allotment and the subsequent instalments.
Default in payment of the amount payable on allotment, or any subsequent instalments, will render the allotment liable to cancellation, and the amount already paid liable to forfeiture.
Perspectives and Forms of application can be obtained from the Bankers, the Solicitors, and the Registered Office of the Company
Denaby Main, near Rotherham, March 22, 1898