24 JANUARY 1941, Page 26

COMPANY MEETING

BRIT1SH-AMERICAN TOBACCO CO.

iNCREASED TAXATION AFFECTS PROFITS

THE thirty-eighth annual general meeting of the British-American Tobacco Company, Limited, was held on January 20th in London. Sir Hugo Cunliffe-Owen, Bt. (the chairman), said that the net profit for the year, after deducting all charges and expenses and providing for taxation, was L4,865,441, a decrease of £300,012. Last year they had carried forward a balance of £2,274,131. To that must be added the profits for the year, less the dividend on the 5 per cent. preference stock of £225,000, on the 6 per cent, preference stock of £360,000, and the four interim dividends paid for the year on the ordinary stock amounting to £3,957,335, leaving a disposable balance of £2,597,237, out of which the directors recommended the distri- bution on February 7th of a final dividend, free of United Kingdom Income Tax, on the issued ordinary stock of threepence per Li of stock, amounting to £296,972, leaving £2,300,265 to be carried forward.

THE OUTLOOK

What of the future? He had told stockholders last year that he was not a prophet, and still less did he feel able this year to prophesy as to what might happen in the future, in view of the very disturbed conditions prevailing to a greater or lesser extent in practically every country in the world. He could confidently say, however, that the company's business was thoroughly sound _financially and well- equipped to meet any fair competition that might arise. A world-wide business such as theirs was always faced with uncertain exchanges, and, today especially, the possibility—and he might even say the probability—of further increases in taxation in many countries. Allow- ing for that, however, he was hopeful that during the current year they would be able to meet and counter difficulties that might arise just as successfully as they had done during the year under review.

The directors had declared for the year 1940-41 an interim divi- dend of ninepence per Li of stock, free of United Kingdom Income Tax, also payable on February 7th next, so that the ordinary stock- holders would receive on that date is. per Li of stock. The Chan- cellor of the Exchequer had issued a warning that it might be neces- sary to make further increases in taxation in the near future, in addition to which they were faced with uncertain conditions through- out the world. The directors had, therefore, thought it advisable to declare the interim dividend at a somewhat smaller rate, though it should not be inferred from that fact that the total dividend distribu- tion for the current financial year would necessarily be less than for the preceding year.

The report was unanimously adopted.