The Board recommends a final dividend of 30%, plus a
cash bonus of 10%, which makes a total distribution for the year of 55% on the one class of issued share capital as enlarged by the one for five free scrip issue made last year. The distribution for the year, therefore, represents an effective increase of 9.94%.
The last eight months of the year were an excep- tionally difficult period for Production owing to the very poor quality of potatoes which were available from the 1960 crop. From July onwards for the rest of 1960 continual wet weather was experienced, which seriously affected what originally looked to be a promising crop and the conditions under which it was lifted. As a result although prices per ton looked cheap, the potatoes came to us full of exces- sive water and in bad condition, which not only led to high processing costs but gave a low yield per ton of the quality of crisps we look to produce.
We believe that with the increased productive capacity now available from the extensions made during the year we are now in a position to supply all requirements of the trade.
Up to the end of June last year the Parent Com- pany's sales showed a nice increase on the figures for the similar period of the previous year. The pro- longed spell of bad weather which followed and continued through most of the holiday period, how- ever, seriously affected demand in our peak period of sales. Nevertheless, over the whole year and exclusive of sales of Tudor Crisps we exceeded the sales for the previous year by a small margin.
QUALITY THE KEYNOTE Looking into the future, we are sure that the demand for our product will continue to grow. Quality is the keynote of our policy and we pay the greatest attention to all matters which are necessary to maintain it, using the finest ingredients available and methods of processing to impart just that difference in flavour and keeping qualities for which Smith's are famous. I make no apologies for repeat- ing our Slogan 'There are no Crisps to equal Smith's.' To the Public, Crisps still mean Smith's Crisps.
OVERSEAS SUBSIDIARIES
The Chairman referred to the developments over- seas. The Australian Company has opened another factory at Newcastle, New South Wales, and pro- duction and sales continue to advance. Our Dutch subsidiary Company has made a small but welcome profit and the initial productive capacity has been more than doubled. Trade has been extended to the German and Belgian Markets with a view to developments there. In the Republic of Ireland, Smith's Potato Crips (Ireland) Ltd. has been formed in association with interests there. A small but efficient factory has been set up in Dublin and it is already in production.
For the first three months of the current year, sales of the Parent Company show an appreciable improvement. On the other hand, our profit margins have continued to be seriously affected by the poor quality of potatoes from the last part of the 1960 crop and high prices for suitable new potatoes. On a longer view, we have good reason for confidence that, with the dominating position we have estab- lished in the crisp trade and our experience and widespread interests in it, your Company will con- tinue to give a good account of itself and add to the fame of our product, Smith's Potato Crisps, with satisfaction to our customers and shareholders alike.
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