RUGBY PORTLAND CEMENT
THE Annual General Meeting of The Rugby Portland Cement Co. Ltd., will be held on June 3rd. The following is an extract from the speech of the Chairman, Sir Halford Reddish, which has been circulated with the Accounts :
Although our Group profit for 1965 was a record for the twentieth successive year it was not by any standards an easy year.
However, the home demand for cement was well maintained during the first half of the year. The postponement of some forms of constructional work announced by the Chancellor in July had an im- mediate effect on the demand for cement. Neverthe- less, our own company's home trade deliveries in 1965 were slightly in excess of those for 1964, while our total group deliveries were approximately 5 per cent. up and were a fresh record.
In July home cement prices were raised by 6s. 6d. a ton, partly to offset (all too tardily) increased costs of production and partly to cover the cost of the im- ported cement which was sold at our normal prices with no profit to the cement companies in this country. This part of the increased price had re- couped the excess cost of imports by the end of the . year and a reduction in price of 3s. Od. a ton there- fore came into effect on the 1st January 1966.
Our 57-mile pipe-line carrying a high calcium- carbonate chalk from our quarries' near Dunstable to our two Warwickshire works (without any inter- mediate pumping stations) was brought. into opera- tion in the Spring—A "technological innovation" which has excited_the interest of many cement corn- pinien in different parts of the world.
The extension of our Works at South Ferriby is now progressing well. The new kiln with a productive capacity of 350,000 tons of cement per annum should be in operation in about a year's time.
In the near future we expect to start on the exten- sion of our Rugby works, The new kiln there will also have an annual productive capacity of 350,000 tons.
Overseas, our Western Australian company made further progress, the demand for cement rising steadily in pace with the State's economic develop- ment. We are aiming to have a third unit in operation by the early months of 1968. Our Trinidad company's profit was slightly less than in 1964, due mainly to increased costs outside our control.
The Group net profit for 1965 of £3,663,761 was 10.6 per cent. upon that for 1964.
Although weather conditiops in the U.K. in the first few weeks of the current year were less favour- able than at the beginning of 1965, our Group profits for the first quarter were in excess of those for the corresponding period of last year.
Experience has taught me that it is usually more advantageous for a business to expand when times are difficult than to do so in the middle of a boom— always of course on the assumption that one has confidence in the longer-term future.
So, in spite of present uncertainties. Rugby Cement will go ahead with its plans for expansion, steadily but cautiously. It is not enough to be on the right road : if you stand still you are liable to be run over.
., A copy of the full speech may be obtained on application to the Secretary at Crown House. Rugby.
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