A.B.C.
It is not surprising that the shares of the Aerated Bread Company should have declined on the special Report made by Sir W. H. Peat at the request of the directors into the affairs of the company and its subsidiaries. A summary of this Report prepared by Sir Harry Peat in conjunction with Sir Ernest Roney was circulated last week, and it is exceedingly critical of the past financial policy both in the matter of capital expenditure, the various acquisitions and even as regards the allocation of profits, it being affirmed that money has been distributed in dividends and bonuses which should have been employed on keeping Depots in a good state of repair and efficiency. Shareholders, however, are at the same time somewhat reassured by the opinion expressed by Sir Harry Peat that the situation has been taken in time, and that " the capital of the company is intact and is represented by tangible assets." Moreover, the fact that the company has a turnover of upwards of £2,250,000 per annum shows that it possesses a valuable goodwill and substantial potential earning power. Certain practical recommendations are made in the Report, and the directors state that they are taking forthwith all practicable steps to give effect to them.
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