2 JULY 1937, Page 45

COMPANY MEETING -

HOVIS LIMITED

RECORD PROFITS

Tan thirty-ninth ordinary general meeting of Hovis, Limited, was held on June 30th, at Caxton Hall, London, S.W.

Mr. A. H. Dence, J.P. (the Chairman), who presided, said that the directors were able to report that the business continued to progress and was strong, healthy and vigorous in all its departments. The balance-sheet, accounts and profit and loss account were in every way satisfactory and revealed a very strong position. There were but few companies that had shown in the past such a consistent record as their own over a long series of years, and in which, not only had profits been so steadily progressive, but also in which such regular and generous dividends had been maintained.

The net profit on trading, after making the usual provision for income tax, contingencies and other expenses, amounted to £190,269.

That figure was a new record for the company. In considering the allocation of those profits, the directors had had to bear in mind the fact that the Chancellor was placing additional taxation on the profits of limited liability companies and until the full amount of such taxation was known they felt it incumbent upon them to exercise caution in their recommendations. Also it became neces- sary, when wheat was high 'in price as it still was at the rpesent time, to conserve their resources to meet any sudden or unexpected turns in the market and to prepare for the inevitable fall in prices when such came. They were therefdre recommending the payment of the same dividend and bonus as last year. As soon, however, as the incidence of the new taxation was known and the board felt that they were justified in doing so, they would reconsider the position in the hope that they might be able to make a higher distribution at a later date. In addition to the dividend, the directors proposed to place £30,000 to the general reserve fund, £15,000 to the dividend equalisation reserve and £2o,00o to the Hovis Pension Fund.

They were satisfied that the daily use of Hovis Bread could do much to promote the good health of the people of the nation and they were all proud to be associated with the work of a company whose product they considered to be so vitally necessary to the national physique.

The report and accounts were unanimously adopted.