22 AUGUST 1941, Page 23



POSITION FURTHER STRENGTHENED DIVIDEND OF 5% HE twelfth annual ordinary general meeting of Darwins, Limited, n be held on August 22nd at Winchester House, Old Broad Street, mien, E.C.

The following statement by the chairman (Mr. Alan P. Good) has en circulated with the report and accounts and will be taken as • d:

I am very pleased to be able to present to you an account showing surplus of £33,183 available for disposal after full provision for ctstandings in enemy-controlled countries, increased depreciation, and aion. As stated in the directors' report, it is proposed, subject to r approval, that this surplus be dehlt with by transferring to neral reserve a sum of £18,104, increasing the balance on that count to the sum of £35,000 ; to pay a dividend at the rate of :,er cent. per annum, less tax, at a cost of £12,728 15s., and to -ry forward the balance of £2,350 5s. 4d.


The amount owing by Andrews Toledo, Limited, on current count shows a large increase due to the expanding turnover of that mpany. The reference in the directors' report to the undertaking ted June 22nd, 1940, was necessary because a technical breach has en committed. The explanation is that central buying is in opera- n, so that your company has taken over the control of purchases d responsibility for payment of accounts. The expansion in the never of Andrews Toledo, Limited, already referred to, and the cessity for carrying heavy stocks of raw materials, has resulted in ur company having to provide temporary financial assistance to drews Toledo, Limited, amounting as at March 31st, 1941, to me £21,000. The technical difficulty arising therefrom will resolve and when the second supplemental trust deed is adopted, to which erence will be made later.

The excess of current assets over current liabilities as at March 31st, 41, amounted to £245,000, as against £166.000 last year, and the aid position has further improved since the date of balance.


Taking the items of current assets and liabilities separately, the rease in debtors and creditors follows the expansion in turnover. The dividend receivable from the company's main subsidiary- drews Toledo, Limited—represents the profit of that company for year ended March 31st, 1941, and shows a very satisfactory provement compared with the previous year. The loss of the only er trading subsidiary of £565 will, it is anticipated, be absorbed the profit of that company during the year ending March 31st,


It has proved desirable in practice that your company and Andrews led°, Limited, should work in the closest co-operation. Unfortu- e1Y, the supplemental trust deed which was entered into at the your company acquired the control of Andrews Toledo, Limited, not fully visualise the eventualities which have since occurred. has accordingly been thought desirable to call a meeting of stock- ders to get their consent to certain rearrangements. Briefly, if second supplemental trust deed be passed in the form now pro- the two companies will be treated as one so far as borrowings concerned. It will be possible to borrow up to £200,000 in front the debentures, instead of LI oo,000 as heretofore, to finance the eased turnover, to transfer plant from one works to another re it is most suited, and pursue the policy of centralised buying. efore concluding, I would state that notice of motion has been red from one of the leading shareholders that £400 additional uneration be voted to the directors, to be allocated as they may .de.