COMPANY MEETINGS
ALLIED BAKERIES
SATISFACTORY EARNING POSITION
THE second annual general meeting of Allied Bakeries, Limited, was held on July r9th at Winchester House, London, E.C.
Mr. W. Garfield Weston, the chairman who presided, said that the company was now the largest of its kind in this country. They had, at the date of their balance-sheet, 2,786 employees ; they operated i7 modern bakeries, owned 86 shops, and operated 494 bread routes. It today had an issued capital of £r,125,173 in preference and ordinary shares, -but it was only- in the latter part of the year under review that the whole of that capital was earning dividends for the company.
Owing to the dates of acquisition of additional businesses during the year, they had only been able to bring into the profit and loss account part of the profits earned by those companies during the year, so that it showed only the net sum of £96,464 received as dividends, but the total profits actually earned by their subsidiaries had amounted to £156,390.
If, therefore, the profits of their subsidiaries during the current year showed neither expansion nor diminution, it would appear that, after allowing for management expenses, the interest on the issued Preference capital would be covered nearly five times, and the earnings yield on the Ordinary capital would be considerably above the satisfactory earnings shown in the balance-sheet.
CASH RESOURCES.
The cash position had been built up substantially and now stood at £67,000. The cash balances of the combined companies stood at £168,443, to which must be added the marketable securities in the hands of their subsidiaries, whose total at the date of the balance- sheet was £76,668, or a total of liquid assets amounting to £245,11 1-.
It was the policy of the company to buy British, and so far as was possible the company would continue to support the agriculture and industries of this country and the Empire. Current business was maintaining the levels reached last year, and though the troubled state of the world made it impossible to forecast the future price level of commodities in which they were interested, he could see no factor of sufficient importance that was likely to retard their progress. The report and accounts were unanimously adopted.
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