COMPANY MEETINGS
FRANCOIS CEMENTATION
DIVIDEND OF IS PER CENT.
AT the 19th ordinary annual general meeting of the Francois Cementation Company, Limited, held on Friday, July 21st, in London, E.C., Mr. Harry Clayton (the Chairman) said:
After deduction of the directors' fees of £3,391, we are left with the profit, subject to interest and taxation, of £64,463. Pro- vision for income-tax and National Defence Contribution absorbs £20,047, and the dividend on the 6 per cent. Preference shares for the small period from February 17th, 1919, accounts for £1,381. This leaves a balance available on the year of £35,082.
In our balance-sheet of last year there was a surplus on profit and loss account of £83,085, of which £55,399 was earmarked for appropriation under the capital reorganisation scheme. We have also deducted £10,228, the expenses of that reconstruction and of the issue of the new debentures and share capital, and are left with 117,458, which, added to the sum available on the year's working, gives a total of £52,540 to be dealt with; £30,000 has been trans- ferred to reserves, divided equally between general reserve and one for contingencies and development, which leaves £22,54o as the amount to be carried to the balance-sheet. We further recommend that a dividend be paid on the Ordinary shares of 15 per cent., less income-tax, requiring £13,322, so that we are left with £9,218 to be carried forward to the next account.
For the purposes of a normal year we can commence with the figure of profit, subject to interest and taxation, namely, £63,463. The annual charge for Debenture interest is £7,800 and for re- demption of Debentures £1,300. The Preference dividend for a full year is £12,000. These sums total £21,100, and would have left £42,363 available for reserves, taxation and dividend.
As a result of these larger appropriations from profits the pro- vision for income-tax to be borne by the company would have been reduced, and with National Defence Contribution would have amounted to approximately £17,000, so that £25,363 would be left. Deducting the dividend on the Ordinary shares now proposed would have left just around £12,00o for reserves or as a carry- forward. You will note, therefore, that in proposing this dividend, representing as it does about 521 per cent, of the surplus avail- able on this basis, no advantage has been taken of the fact that the prior charges in this year were not normal. The whole of the difference in prior charges and the amount of £17,458 brought forward, together approximately £3o,000, have been taken to re- serve accounts.
The report and accounts were unanimously adopted.
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