COMPANY MEETIN
MARKS AND SPENCER, LIMITED
MR. SIMON MARKS'S STATEMENT
THE sixteenth ordinary general meeting of Marks and Spencer, Limited, was held on June 9th, at the registered office of the company, Michael House, 82, Baker Street, London, W. The following is the statement by the chairman, Mr. Simon Marks, D.Sc., circulated with the report ,ind accounts and taken as read:— ALLOCATION OF PROFITS
The profits for the year amount to £1,583,088, as compared with last year's profits of £2,425,352. We have had to provide £472,991 for taxation, which, with the carry-forward from last year of £346,530, leaves available for distribution £1,456,623, as against £1,230,479 last year. It will be seen that while the company's profits, before making pro- vision for taxation, are £842,264 less than the previous year, the amount available after making provision for taxation is k2o4,70A greater. This is due to the operation of E.P.T. and also to some extent to the reserve for taxation last year having proved to be in excess of requirements.
Your directors propose that a final dividend of 20 per cent., making 35 per cent. for the year, shall be paid. The carry-forward for next year will thus be increased to £571,940. We have made the customary provi- sion for depreciation and repairs, including provision for deferred repairs, and we have written off all capital expenditure in connexion with A.R.P. works.
We provided last year our full liability for properties under the War -Damage Act of 1941, but in this year's accounts we have had to provide for the insurance of chattels. Our stock, which last year totalled £1,999,680, has now been reduced to £1,279,389, and cash in hand is £1,466,273. Inves■ments in Government securities have increased to £902,600. Advances to subsidiary companies nave increased to £478,550. The major part has been invested in stock for export and is now being steadily reduced.
EFFECTS OF RATIONING AND CONTROL
In my last speech I indicated that the restriction of civilian consump- tion would lead to a reduction in the level of your company's business. The various measures of rationing and control Introduced by the Govern- ment spring from a limitation of supplies and are designed to effect a reduction of consumption. They must necessarily therefore, contract the scope of any distributive business. Some measure of the con- traction which in our case has taken place is given by the fact that our counter footage has been reduced by nearly one-half and the .-taff re- duced correspondingiy. - The Marks and Spencer Export Corporation has continued its opera- tions. Our goods have founu a ready market in the United States, and there has been a corresponding flow of dollars to the British Treasury. Export is now restricted under licence, and during the coming year will be on a decreased and limited scale.
COMPANY'S WELFARE ORGANISATION
In co-operation with the Ministry of Labour and the Ministry of Supply, we have been able to divert large numbers of out women staff into Royal Ordnance factories: This has been found most helpful by the Ministries concerned. Our girls are able to work together as a team, and are making their contribution to war production. Over 1,400 of our men are serving with His Majesty's Forces. Some, to our sorrow, have been reported killed, wounded, missing, or as prisoners of war. Our heartfelt sympathy goes out to the relatives of those who have passed away and to the men who have suffered. The others are to be found in every field of duty, and we look forward to the day of their safe return. They maintain close contact with us, and as you know we are making them supplementary allowances on a generous scale.
THANKS TO STAFF
The various national calls on our man and woman power have in- creased the responsibilities of those who remain. We are most grateful to them for their efforts on our behalf and their loyalty to the company, which have overcome many difficulties. The resolution for the adoption of the accounts and he report was carried unanimously. Resolutions were passed re-electing the directors retiring by rotation and also reappointing Messrs. Deloitte, Plender, Griffiths and Co., the auditors. It was announced that dividend warrants would be posted on June 19th, 1942, to shareholders whose names were on the register of members on May 11th, 1942. A hearty vote of thanks was passed to the chairman, directors and staff. The chairman, in acknowledging the compliment, drew attention to the fact that the company and all its officials were endeavouring to play their full part in the national effort.
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