COMPANY MEETINGS
DUNLOP RUBBER
IMPROVED EXPORT TRADE
THE forty-second ordinary general meeting of the Dunlop Rubber Co., Ltd., was held on Tuesday, June loth, in London, Sir J. George Beharrell, D.S.O. (the chairman) presiding.
The following is a summary of the statement by the chairMan circulated with the directors' report and accounts for the year 1940: When he last addressed the shareholders the conversion of the national economy from a peace to a war basis was still in a compara- tively early stage, but the tendency, as the war went on, for trading conditions to become more and more abnormal was fully foreseen. Since that time the purchase tax, the limitation of supplies and control of materials had been brought into effect. In all the circum- stances it was very satisfactory that they had been able mare than to maintain in 194o the good trading results of 1939. Their factories in this country had been fully occupied, many branches of their normal business having held up remarkably well. Indeed, their export busi- ness actually showed a substantial advance in earnings on the preceding year.
The net profit for the year amounted to £3,002,000, compared with £2,853,000 in 1939. The provision for taxation amounted to £1,742,000, which represented an increase of L715,000 over that for the preceding year. In addition the board had provided £650,000 towards the 1941-42 income-tax liability. That did not represent the whole burden that the Dunlop group of companies had had to bear, as the charge for taxation in the accounts of the subsidiary and sub-subsidiary companies amounted to Li,666,0oo. The total provision for the year under review amounted, therefore, to £4,058,000, com- pared with L2,388,0oo. That great increase had inevitably made a heavy inroad upon the balance of profits available for distribution. After providing for the Preference dividends the board recommended a dividend of 8 per cent. on the Ordinary stock and a bonus of 2 per cent.
He would like to convey a very special message of thanks to the company's employees of all grades, who had to contend with un- exampled difficulties. The call for A.R.P. workers had been heavy and had met with a magnificent response.
Shareholders would realise how exceedingly difficult the processes of distribution had become. Such measures as the purchase tax, the limitation of supplies and the Prices of Goods Act had provided many complications and. in addition, new and strange conditions occurred in the distributive field from week to week, and sometimes from day to day. Fortunately their sales organisations had adapted themselves admirably to the unusual circumstances, and he believed that their resource was assisting to increase the company's prestige and good will with both trade and public. In concentrating upon essential work the company was sometimes unable promptly to meet all the requirements of what might be termed the civilian market."
The report was unanimously adopted.
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