COMPANY MEETING
CLIMAX ROCK DRILL AND ENGINEERING WORKS
THE twenty-eighth annual ordinary general meeting of the Climai Rock Drill and Engineering Works, Limited, was held today at tht Abercorn Rooms, Great Eastern Hotel? London, E.C. The following statement by the chairman (Mr. Alfred Ewing) 53, been circulated with the report and accounts and will be taken al read: I regret the delay this year in submitting the accounts, which a due to war-time conditions, the difficulty in obtaining informatio: quickly from our depleted overseas offices, and to the heavy load D: our home staff. The net profit for the year is £55,134, as comparto with £32,421 in 5939-an increase of £22,713.
INCREASED SALES
The bulk of our normal business is with the Dominions oversew and I am happy to record that . we did not lose a single shipmem during the year In foreign markets 'and enemy-occupied countries normal busines has ceased temporarily, but we hope that after the termination of we may once again renew our mutually advantageous business relation- ship with the Soviet Union.
SOUTH AFRICA AND CANADA
When I addressed you last year I stated that my investigations it Africa had led me to the conclusion that British manufacturers if engineering products for export to South Africa would find it nece. sary to manufacture in that Country if they were to retain a reason• able proportion of the business available. We have made modes arrangements in an endeavour to service the machines which we have in operation in South Africa. I shall now deal with the balance-sheet. Capital expenditure during the year under all heads amounted to £19,200, and depreca- tion written off, including special provision for abnormal wear and tear of plant and machinery was £15,o61, so that the net increase it fixed assets was £4,139.
EXCESS OF CURRENT ASSETS
The excess of current assets over current liabilities amounts
£171,488 as compared with £158,670 in 1939, an increase (1 £12,818. Stock and work in progress increased in value from £151,191 in 1939 to £231,535 in 1940-an increase of £80,344. Delon in 1939 were £66,832, as compared with £135,276 in 1940-0 increase of £68,444. It has been difficult to regulate our cash position for reasons beyond our control, and it has been necessary to make financial arrangemeno to enable us to handle the greatly increased output. Last year then was a bank overdraft of £zo,004, which has now been replaced b! bills payable amounting to £75,000. Cash in bank amounts to £28,551, as compared with £1,405 in 1939. Further facilities have heel arranged during the current year.
INJUSTICE OF I00 PER CENT. E.P.T. I cannot resist the impulse to voice the protests which have appealed in speeches by chairmen of other companies and in the Press of Me injustice to industry of Excess Profits Tax at roo per cent. Mal concerns, and particularly those in the engineering industry, are axe than anxious to do all they possibly can to assist the countrY'so effort and to bear the load of taxation, but to my mind it is a now not to allow a small margin of profit to remain to assist in ITO' struction when hostilities cease.
DISTRIBUTION OF 12k PER CENT.
Following the previous year's practice, we paid an interim divided of 21 per cent., less Income Tax, and we now recommend 3 dividend of so per cent., less Income Tax, bringing the dis•ribudol up to 12k per cent. The balance brought forward from last , was £6,226 ifis. 6d., which, with the net profit for 1940 of £55,. 54.s. 8d., less the interim dividend of £4,500 and provision for ta120 of £15,000, leaves £41,86o 13s. 2d. available for distribution.
The directors recommend that a final dividend of so per less Income Tax, be paid in respect of the year ended December 31 194o, making a total of 52k per cent., less Income Tax, for the
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