COMPANY MEETING
AMALGAMATED PRESS
Tan annual general meeting of the Amalgamated Press Ltd. was held on June 28th at Southern House, Cannon Street, London, E.C.
Lord Carnrose (Chairman of the corripany) said : Ladies and gentlemen, I propose to- take the usual course on these occasions and, with your permission, treat the report and accounts as read.
Turning to the report and balance-sheet before you, you will see that the profits come out at £662,001, which is just about £5,000 less than the figure for the previous year. Adding the sum of £140,130 brought forward, we have a disposable balance of £802,131. Interest on the debenture stock and the preference shares absorbs, approximately, £423,000. We recommend a final dividend on the ordinary shares of 6 per cent., making II per cent. for the year. an allocation of £roo,000 to general reserve, and the carrying forward of the balance of £147,143, which is approximately £7,000 more than. was brought in. This is the sixth successive year in which we have paid 11 per cent. on the ordinary shares.
The redemption and reissue of our debenture stock was carried through at the end of our financial year. As the transaction was not concluded until the first day of the new year, our debentures do not appear in the balance-sheet in the form that they will assume when the current year's accounts are presented. The position is that, whereas we had last. year debentures outstanding to the amount of £2,462,5oo, bearing interest at 41 per cent., the total debenture issue now amounts to £1,500,000. This reduced amount bears interest at the rate of 3+ per cent. per annum. It is therefore apparent to you that the charge against our profits for the current year in respect of debenture interest will be substantially less than it has been. It is also, perhaps, worthy of note that when the company was formed in 1926 there were £3,5oo,o0o of 5+ per cent. debenture stock. I would only add that the difference between the original debenture debt and that of the present day of £2,000,000 has been found out of the company's own current resources and not by the realisation of any of what might be called our fixed assets.
IMPERIAL PAPER MILLS.
In the current year, as I have indicated, we shall make a large saving in the interest on our debenture stock. On the other hand, we have to face an almost certain drop in the profits of our paper- making subsidiary, the Imperial Paper Mills. During the past year the results from the mills, on the whole, were satisfactory, and the production reached a record figure, but we cannot - view without concern the way in which the costs of manufacture have risen, and are likely to rise still further during the present year. The rises have been especially serious in the case of two of the basic materials used in the making of newsprint—groundwood and sulphite paper pulps. Prices of these materials have con- tinuously advanced in the last few months, and are now too per cent. higher than they were 15 months ago. These increases are attributed primarily to the world-wide rise in the cost of timber and to the greatly extended demand for pulps of all classes, coupled with an apparent shortage of supply. You can readily realise that it is a great responsibility to make contracts for raw materials of this -kind at these extreme prices far in advance of delivery dates, especially when the selling price of newsprint for 1938 was fixed prior to these rapid increases of costs.
EFFICIENCY IN PRODUCTION.
As I have previously mentioned, our mills have run to full capacity in 5936, and the management are taking every possible step to achieve the greatest efficiency in our production. To this end we are engaged in the modernisation of some of our plant and the installation of a new three-roll paper-making machine of the most up-to-date character. These changes will take two or three years to complete, and when they are achieved our production will be substantially increased. We have every, confidence that the demands of our customers will enable us to dispose of that production without difficulty.
Our printing works, where we employ more than 3,000 people, have also been fully employed. At the present time there are negotiations proceeding between the British Federation of Master Printers and the Printing and Kindred Trades Federation for a reduction in working hours. The demand made by the unions was for a 4o-hour week, and after considerable negotiation the Master Printers have offered a 45-hour week. The trade unions propose to re-ballot their members on this offer. There is no doubt, however, that in the near future shorter hours will be adopted in the printing trade throughout Great Britain, and this will surely entail an increase in the cost of production of all periodicals. Turning now to our periodicals, although competition in the publishing field has, if anything, grown keener, the profits we are able to show you are an indication that we have succeeded in main- taining our position in a satisfaCtory way. "
You will remember that last year I said that our revenue from advertisements showed an increase over that of the previous year. Today I am glad to report a still further increase. This reflects the gradual return to general prosperity which was making itself felt during the year under review, but which has been progressively much more marked in the present year. This increasing support by the advertiser has been earned in the main by the intrinsic value of our periodicals as advertising mediums, and our unceasing efforts to maintain the efficiency and pulling power of each of them.
The report was unanimously adopted.
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