MARKS AND SPENCER, LIMITED

MR. SIMON MARKS REVIEWS THE PROGRESS OF THE BUSINESS IMPROVED VALUES IN MERCHANDISE 94 PER CENT. OF MANUFACTURED GOODS BRITISH MADE CO-OPERATION WITH SUPPLIERS CAREERS OPEN TO EMPLOYEES THE thirteenth annual general meeting of Marks and Spencer, Limited, was held on May 9th last in London, Mr. Simon Marks (Chairman and Managing Director) presiding.

The Chairman in the course of his speech said The net profit for the past year amounted to £1,782,000, an increase over last year of £179,500.

ALLOCATION OF PROFITS After deducting Income-tax, National Defence Contribution and dividends already paid, there is left an available balance of £1,099,800, which the directors recommend should be appropriated as follows : — Transfer to Staff Benevolent and Pensions Fund 25,000 Debenture Redemption Fund 12,500 Properties Contingency Reserve 93,000 General Reserve Account 342,200

Payment of a final dividend on the Ordinary and " A " Ordinary Shares at the rate of 271 per cent., thus making 421 pet cent. for the year ended March 31st, 1939 528,600 By carrying forward to next year's accounts 98,500 ISSUE ON BONUS TERMS The Directors further recommend that a distribution by way of bonus be made to the holders of the existing Ordinary and " A " Ordinary Shares of the company in the proportion of one " A " Ordinary share for every ten Ordinary and/or " A " Ordinary shares held.

RESERVES The General Reserve will stand at £2,150,000.

The Freehold _Properties Depreciation Reserve has increased to £313,000. Properties Contingency Reserve to £300,000. Free- hold, Leasehold and Leased Properties stand at £8,849,000, a net increase of £854,500.

Furniture, Fixtures and Equipment stand at £824,500.

Cash at Bank and in hand stands at £935,300.

A REVIEW OF PROGRESS There has been a progressive increase in profit each year. In 1927 it was £88,000, and this year £1,782,000.

It has been our purpose to supply the public with the best values in material, design and finish. A real transformation in values has taken place due to our collaboration with many of the foremost manufacturers and producers of the country, with whom we maintain the most cordial relationship. Over 94 per cent. of the manufactured goods we sold last year were British made. We have given the consumer the advantage of the economies in pro- du:tion which spring from large-scale demand.

Our business is one which is mainly concerned with supplying the necessaries of life to a vast consuming public, in wearing apparel, footwear of every description, and foodstuffs. Today we are amongst the largest distributors of food in the country.

DEVELOPMENT Our principal development in recent years has taken the form of increasing the size of existing units rather than of increasing their number.

We now have a selling counter space measuring nearly 44 miles. During the year we opened to new stores, including 3 removals, and have extended 23 existing stores. One unit has been closed. The total number of stores in operation is now 234-

The coming year's development at present deals with 4 new stores, 2 being replacements and 20 extensions.

FINANCE

We have made arrangements to borrow up to an amount of £2,000,000. We have so far taken up an advance of £500,000 at

a rate of interest of 4 per cent. The Board may utilise a favourable moment to make an issue of share capital to replace the loan, but at present have no such intention. We are, however, taking up in the near future a further loan of £500,000 on the existing terms.

NATIONAL SERVICE To date about 4,600 of our staff (some 25 per cent.) have been trained in First Aid or Anti-Gas, as Wardens, Fire-Fighters, or Decontaminators. Each of our Stores has been organised to meet an emergency in so far as medical supplies, fire-fighting and rescue equipment are concerned.

I think it is proper at this meeting to express appreciation of the public spirit which has induced so many of our employees to take up this most important work.

An expenditure of £20,000 has already been incurred in carrying out our present measures.

In regard to recruitment for the Territorial Army, we have for some time past given every facility to those of our employees who have volunteered for service. We allow them time off for training and to attend camp, with full pay, in addition to their normal holidays with full pay.

WELFARE AND STAFF Our staff now numbers 18,50o. Welfare activities have been maintained and extended. We attach the greatest importance to the general well-being of our staff. There has been a progressive improvement both in working conditions and wages, and working hours have been reduced to an average of 44 per week. Welfare work will cost the company £122,000 this year, as against D08,000 last year.

An organisation like ours gives opportunities for advancement to employees. not only to the male members of our staff, but also to the women. In practice the vast majority of vacancies in the higher ranks are filled from people in the lower ranks. There is a real career open to those who possess initiative and ability.

I take this opportunity, on behalf of the Board, of thanking each and every member of our staff for the devotion and loyalty which they have shown to the company.

Mr. Marks then moved the adoption of the Report and Accounts.

MR. I. M. SIEFF'S REMARKS

Mr. Israel M. Sieff, B. Com. Vice-Chairman, in seconding the resolution, said:—

The results of the last year's trading are ample evidence of the success' of our development policy, and the benefits which have come from the close co-operation between the manufacturer and ourselves.

I want to take this opportunity of adding my expressions of appreciation to our suppliers for their readiness to work along these lines of mutual understanding.

I would like to join the Chairman in his observations on the devotion of all ranks of our staff to the interests of the company, during a rather difficult year of international tension. We can con- gratulate ourselves on possessing a band of loyal workers, who look to our business for their future and their career, and who therefore are most anxious to forward the progress of the company.

The resolution for the adoption of the Report and Accounts was carried unanimously.

Resolutions were also passed re-electing the Auditors and the Director who retired by rotation, also approving the proposed capitalisation of reserves and the bonus issue.

It was announced that Dividend Warrants and Allotment Letters in respect of Bonus Shares will be posted on June znd to Share- holders whose names were on the Register of Members on May 1st, 1939.