COMPANY MEETING
ALLIED BAKERIES
INCREASED SALES
THE fifth annual general meeting of Allied Bakeries Limited was held on August 23rd in London.
Mr. W. Garfield Weston, M.P. (the chairman), said that the operat- ing companies had maintained a steady trend of increasing business despite the war, but continuing increases in material and labour costs had not been offset by an increase in the price of bread. Regulations restricting the area of deliveries had curtailed normal expansion, but large-scale evacuation had not appreciably affected the company as a whole and total sales had been increased.
In the event of intensive air raids the geographical layout of the organisation afforded an apparent advantage which the company was prepared to place at the disposal of the baking industry. To prevent interference with a vital food service in the event of serious damage to or total destruction of other bakeries the use of the operating companies' bread plants would, as far as possible, be made available to secure their lost production at cost.
Provision for taxation for the group amounted to L340,000, but as some of the companies had commenced trading within comparatively recent years an unduly large proportion of their normal trading pro- fits were deemed to he excess profits. The company had thus borne a much heavier burden of taxation than others with comparative earn- ings, but he felt sure the shareholders would derive satisfaction from the handsome contribution to the Exchequer.
PROGRAMME OF MODERNISATION
An extensive programme of modernisation and re-equipment of bakeries was nearing completion : the expenditure this year would be largely devoted to the maintenance of plant at a high degree of effi:iency. Stocks were considerably higher this year because of increased costs of ingredients and the carrying of larger stocks of flour in accordance with the Ministry of Food's desire to secure the wide distribution of accumulated reserves. Amounts due from Government Departments and the normal increase in sales were the principal reasons for the increase in debtors.
These changes had necessarily involved a drain on liquid resources and loans from bankers had increased, but the readiness with which the company's bankers had agreed to make these advances, largely without security, was a tribute to the basic soundness of the organisation.
He could not conclude without paying a tribute to the help received from his colleagues on the board and to the loyal co-operation of the directors, executives, and staffs of the subsidiary companies during a difficult period.
The report was unanimously adopted.
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