VICKERS RESERVE POLICY
Ordinary stockholders in Vickers, Ltd., will find relief from their disappointment at the board's recent decision not to write up their capital in the explanation afforded by Mr. A. A. Jamieson at the annual meeting. He made it
(Continued on page 504)
FINANCE AND INVESTMENT (Continued from page 502) clear that, while approving in principle the restoration of the nominal value of the ordinary 'stock units from los. to £I, the board considered the present time inappropriate for taking such a step. A sum of £6,157,742 would be required and as the existing reserve of £3,000p00 was not excessive in relation to the issued capital of £14,521,549, the only alternative would be to re-value assets. That course seemed inadvisable to the board in a period when all values were problematical and subject to violent change.
Discussing the group's varied and increasing activities, Mr. Jamieson was inevitably circumscribed by the exigencies of war, but he left no room for doubt that an increasing volume of turnover will make additional calls on the group's liquid resources. He also informed stockholders that calls on cash would be greatly enlarged this year by payment of taxes on an even heavier scale. So far as last year's results were concerned, the tax burden was reflected in the low balance of profits shown in the accounts of the operating companies.
Previous page
