COMPANY MEETING
ALLIED BAKERIES
DISTRIBUTION OF 10 PER CENT.
THE sixth annual general meeting of Allied Bakeries, Limited, was held on September 19th, at Winchester House, Old Broad Street, London, B.C.
Mr. W. Garfield Weston, M.P., the chairman, said that he had referred last year to the widespread distribution of their bakeries and biscuit-making plants, and they had had cause during the year to congratulate themselves on that fortunate circumstance. Op several occasions they had been able to render valuable assistance in areas which had suffered severely from air raids and had many times been called upon to assist in the supply and distribution of bread where local services had suffered more or less total disruption. They had, of course, not come through without loss, but the damage sustained had not been serious and had not been attended with great loss of life. Their thanks were due to all who had rendered sterling service for the common good.
Shareholders might feel disappointed that it had been necessary to restrict the final distribution to 5 per cent., as against a final divi- dend of 7 per cent., together with a bonus of 3 per cent., last year, but, because of the increase in the rate of Income Tax and Excess Profits Tax, it was obvious that that distribution could not be repeated this year. They had to face the situation that current profits, during the continuance of the Excess Profits Tax, were limited to an arbitrary figure based not on their normal established earnings immediately prior to the outbreak of war, but on the much lower level of profits ruling during 1936 and 1937.
The total provision of the group for taxation for the year amounted to L657,000, a truly remarkable figure. In contrast to that, the total distribution to preference and ordinary shareholders of this company and of the two holding subsidiaries, Weston Foods, Limited, and G. L. Bakeries, Limited, and including the final dividend recom- mended, amounted to only £134,630. In other words, for every Lt which their shareholders received the Government first took nearly £5.
At the last meeting he had mentioned the unification of control of their London operating companies by the formation of G. L. Bakeries, Limited ; that company had since acquired three other companies, and their set-up now embraced practically the whole of Greater London. Is. was with much pleasure and satisfaction that he was able to announce that Allied Bakeries, Limited, had recently concluded the purchase of the entire share capital of the important Liverpool bakery and food-distribution business of Benjamin Sykes and Sons, Limited, established in 1869.
The credit balance available was a0,836, compared with £159,820 in 1940, and the directors recommended a final dividend of 5 per.cent., less tax, making to per cent. for the year. The report was unanimously adopted.
Previous page
