HOVIS, LIMITED
THE 41st ordinary general meeting of Hovis, Limited, was held, on the 6th instant, at the Caxton Hall, London, S.W.
Mr. A. H. Dence, J.P. (the Chairman), dealing with the accounts, said that it was proposed to place £20,000 to the reserve account, bringing it up to £52o,000. The directors had also thought it prudent to place £20,000 to reserve for depreciation in Government securities. The profit on trading showed an increase of ,C14,000 as compared with the previous year's figure.
During the year there was a heavy decline in wheat prices, No. I Manitoba showing a fall of 3os. and other descriptions 155. a quarter. The smaller harvests of the previous year were followed by big crops in the chief exporting countries and also in Europe, with the result that once more supplies become well in excess of demand.
Generally speaking, the outlook for the crops now being grown in the exporting countries was favourable, and there should be no anxiety as regarded supplies in the current year.
There were temporary sharp rises resulting from the September crisis and other periods of international tension, and conditions in the wheat market were further complicated by the Government purchases of wheat from Roumania and by the purchase and re- placements of wheat for National Food Defence purposes.
With regard to this security stock, in their opinion it would surely be more prudent if, instead of being in the form of raw material, the wheat were manufactured into flour and well distributed in smaller quantities in depots and stores all over the country, especi- ally inland.
In this way, instead of security stock being concentrated in a few large centres, all millers, large and small, would be participating in the food reserve scheme, and the manufactured article, flour, instead of the raw material, would be available for immediate dis- tribution, with considerably less transport, in the event of national emergency.
Except for maintenance and replacements due to wear and tear, all the company's mills were now complete and up to date, and they were proud of diem. The report was unanimously adopted.
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