COMPANY MEETING
McDOUGALLS TRUST
DIVIDEND MAINTAINED MR. KENNETH MOORE'S STATEMENT THE eighth annual ordinary general meeting of McDougalls Trust, Limited, was held on Tuesday, August 12th, in London.
Mr. Kenneth A. E. Moore (chairman of the company) presided.
The following statement by the chairman had been circulated with the report and accounts, and was taken as read: You will observe from the directors' report that we are able, for the fifth year in succession, to recommend a total distribution on the ordinary shares of to per cent. This is made possible by the fact that the operating company—McDougalls, Limited—was successful in maintaining its profits in the trading year ended March 31st, 1941, at the level established for some years past. The selling price of McDougalls Self-Raising Flour has remained at the pre-war figure, the smaller margin of profit having been offset by. larger sales. The net profit, in fact, comes out at £248,588, after making provision for Excess Profits Tax, National Defence Contribution, and contingencies.
This figure is almost identical with the company's pre-war stan- dard of profits as now agreed with the Revenue authorities for pur- poses of Excess Profits Tax. It is important that you should know this, because, so long as Excess Profits Tax remains at too per cent., the position of ordinary shareholders is virtually that of holders of non-cumulative preference shares (or second preference shares if there are prior charges) carrying a maximum rate of dividend governed by the pre-war standard. In the case of ordinary shareholders in McDougalls Trust, Limited, that maximum, after making a modest allowance for contingencies, is for all practical purposes to per cent.— the rate of dividend to which you have become accustomed.
STRONG FINANCIAL POSITION
To return to the accounts of McDougalls, Limited, it is unneces- sary for me to refer in any detail to the various items in the balance- sheet. The figures speak for themselves, and those of the previous year are given by way of comparison. The financial position, judged by all ordinary standards, remains extremely strong. The story behind the figures, however, is that in a year of unparalleled difficulty and heavy air raids, the management, staff and workpeople have between them contrived to achieve the highest production in the history of the business. For that achievement—and although I can give no details you will appreciate how remarkable it is—you will, I am sure, wish to be associated with the directors in expressing most sincere thanks to all concerned for duty well done, not less in the interests of the community than in those of the company.
You will see from a note on the face of the balance-sheet that the accounts are subject to adjustment by reference to the terms of any agreement which may hereafter be concluded with H.M. Govern- ment in relation to the control of flour mills as from the outbreak of war. Negotiations between representatives of the Government and of the milling industry have, it is understood, now reached an advanced stage, but for various reasons it appears unlikely that the agreement, when it emerges, will affect to any material extent the net profits of McDougalls, Limited, as shown by the accounts for the last two financial years ended March 31st, 1941.
With regard to the current financial year, I can only say that busi- ness has been maintained at a peak level in the first quarter, and for the rest we must hope for the best and be prepared for the worst.
The report and accounts were unanimously adopted.
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