COMPANY MEETING
THE WELLMAN SMITH OWEN ENGINEERING CORPORATION
DISTRIBUTION OF 12; PER CENT. MAINTAINED
THE twenty-first ordinary general meeting of The Wellman Smith Owen Engineering Corporation, Ltd., was held on September 3rd at the registered offices of the company, Victoria Station House, Victoria Street, London, S.W. Sir Samuel Roberts, Bart., the chairman, said: The report of the directors and the audited balance-sheet and accounts for the year ended March 31st, 1940, have been circulated, and I presume that you will agree that they be taken as read. (Agreed.)
PROVISION FOR TAXATION
The net profit realised in the year ended March 31st, 1940, after charging all expenses of working and management and after providing for depreciation, amounts to £79,793, which compares with £69,365 realised in the preceding year. In the year ended March 31st, 1939, a total sum of £26,566 was provided for taxation, £6,566 being charged in the accounts for that year and a further sum of £20,000 being allocated out of profits to taxation reserve.
In the year under review it has been necessary to provide a sum of E4o,00o in addition to the amount already standing on taxation reserve. The corporation's standard profit for purposes of computa- tion of Excess Profits Tax has not yet been agreed with the Inland Revenue Authorities, but the provision made in the accounts covers the full estimated liability on the trading results for the past year on the basis of income-tax at 8s. 6d. in the £ and Excess Profits Tax. After making this provision there remains £39,793. Adding the balance brought forward and after allowing for the interim dividend paid in December last there is available £51,195 as shown in the balance-sheet. Out of this the directors recommend the payment of a final dividend of 5 per cent., making to per cent. for the year, and in addition a cash bonus of 21 per cent. This distribution is the same as for the preceding year and leaves a balance of £32,254 to be carried forward.
FINANCIAL POSITION STRENGTHENED
Turning to the balance-sheet it will be noted that additions have been made during the year to plant and machinery amounting to £8,973 and that the depreciation reserve has been increased by £11,5oo. The financial position of the corporation has been further strengthened during the year—cash on hand showing an increase of £24,000 and the items of loans and advances and bank overdraft which appeared 3n the previous balance-sheet have been liquidated.
You will appreciate that in the present circumstances I am unable to give any detailed review of the corporation's present activities, but I may say that we have placed our engineering and manufacturing resources at the disposal of the Government and are bearing our part in the national effort. Our plant and equipment and our designing facilities are being maintained at the highest pitch of efficiency with a view to assisting in the national export drive when opportunity presents itself.
LARGE VOLUME OF ORDERS IN HAND
The value of orders in hand is very large. Our officials, staff, and workpeople have worked hard and well, and in thanking them I should like especially to mention those who have so willingly devoted their time to air-raid precaution work for the benefit of their fellow- employees. For some time we have had in force a contributory pension and life assurance scheme for our officials and staff. A proposal is now under consideration by the board to extend similar benefits to the skilled operatives and manual workers. The report and accounts were unanimously adopted.
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