LONDON ASIATIC RUBBER AND PRODUCE COMPANY
IMPROVED YEAR'S RESULTS MR. H. J. WELCH'S REVIEW
THE thirtieth ordinary general meeting of the London Asiatic Rubber and Produce Co., Ltd., was held on May 2nd at 19 Fenchurch Street, E.C.
Mr. H. J. Welch (the Chairman) said that the accounts were definitely more satisfactory than those for the previous year, and. indeed, for any of the last ten years.
The board had continued the policy of replenishing the general reserve, which was reduced five years ago by £79,826, when that
sum was utilised to write down the buildings, machinery and plant to the present nominal figure. Since that date they had expended out of revenue on new buildings and equipment a total of £32,013
This amount, however, was less by £10,000 than what would have
been normally debited to revenue for depreciation under the old practice. During the same period (with the allocation now proposed
and without deducting expenditure on replanting) they had added L36,000 to reserve, so that in the net result they had up to date provided the normal amount of depreciation, plus a sum of L26,000, towards amortisation of the planted areas or for expenditure on replanting.
The board recommended the transfer of £25,000 from the profit and loss account to a dividend equalisation reserve, and he might say that they had every intention of drawing readily on this reserve, for the purpose for which it was being constituted, if and when occasion arose. It was also proposed to pay a final dividend of 7i per cent., making a total for the year of I2i per cent.
As to the immediate future of the company, the estates continued to produce rubber at relatively low cost under methods of agriculture and production which gave first consideration to their permaneni welfare. The size of the company and the quality of its estates gave it considerable advantages over many other and smaller producers
but the present low price and exportable percentage if continued throughout the year must seriously affect the profits. He was no, without hope that the ultimate results would be much better thar the present conditions suggested. In any case the company wouhl benefit this year by the very satisfactory forward sales that had been effected of 756 tons at an average price of 11.3d. per lb. Lando.. equivalent.
The report was unanimously adopted.
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