COMPANY MEETING
IMPERIAL CHEMICAL INDUSTRIES
FACTORIES AT FULL CAPACITY
THE fifteenth ordinary general meeting of Imperial Chemical Industries, Limited, will be held on 28th May in London.
In a statement circulated with the report and accounts, the chairman (The Rt. Hon. Lord McGowan, K.B.E., D.C.L., LLD.) writes:— As a result of the pressure of the war for more production, our factories have worked to capacity throughout the year. The performance of the various plants, maintained at a high level, testifies to the excellence of the equipment, the standard of maintenance which it is our practice to keep, and the technical control. The volume of output to meet demands has for a number of products touched new peaks.
We have continued our basic price policy. It is to approach every case with a reluctance to advance the price and not move unless we are convinced of the need for a change by the emergence of factors which are likely to be permanent, or unless a change is called for by the general symmetry of the price structure for related products. Where the expansion of demand and growth of efficiency have made it possible, we have made price reductions, notwithstanding all the conditions of war.
OVERSEAS ACTIVITY
When we look back on the numerous and growing difficulties with which our efforts to promote our export trade have been surrounded, we are surprised by the degree in which volume has been maintained. - Our main manufacturing subsidiary or associated companies in the British Empire—Imperial Chemical Industries of Australia and New Zealand, Canadian Industries, and African Explosives and Industries— have continued their successful progress. Within the limitations of shipping, exchange resources and locally available materials, they have continued to expand their own activities, which like ours have grown with the intensity of the war effort.
The unprovoked attack by Japan upon the United States and the embroilment of the whole of the Far East by the declaration of war on the United Nations, has vitally affected our companies in Japan, China and Malaya. We had, however, not been unmindful of the risks of carrying on business in these areas, and had from time to time in pre- ceding years made ample provisions against contingent losses in the territories now occupied by the enemy in the Far East, I must, however, warn you, now Japan is at the gates of Australia and India, that we have very large interests, both of revenue and capital nature in those countries, through Imperial Chemical Industries of Australia and New Zealand and I.C.I. (India).
RESEARCH AND DEVELOPMENT
Our research activities during 1941 have again covered a wide field. They have embraced problems arising out of new plant conditions brought about by war circumstances, such as the substitution of novel raw materials for normal ones now unprocurable and the development of entirely new products of both present national and possible future commercial importance. Our research staffs in this task have been shown much original and ingenious thinking, while our readiness to assist have been highly appreciated.
War conditions call for the development of research ideas through the semi-technical stage to full scale operation much more rapidly than for peace-time, and particular attention has been given to the development of new projects. Important materials are now being supplied my pro- cesses which not long since were in the hands of the laboratory staffs. The company is collaborating with other concerns in this country where exchange of technical information appears to be in the national interest, and in some instances is voluntarily supplying its technique to industry.
FINANCIAL RESULTS.
The total gross income shown in the consolidated income statement is £19,956,000, compared with £19,016,000 for 1940. This increase of ,C940,000 is largely to be ascribed to the expansion of our activities. The net consolidated income, however, has declined from £6,576,000 to £6,243,000, a fall of £333,000. Once again the conversion of an increase of £94o,000 in gross income into a reduction of £333,000 in net income is due to taxation. The net burden from this cause to be borne by the company? and its subsidiaries, after allowing for income tax recoverable from dividends to stockholders, is £8,762,000, compared with £7,385,0oo last year, or an increase of £1,377,000. The difficulties which flow from high taxation, and the drain on cash resources from this and other special war-time measures unfortunately still remain. For instance, the restriction of our financial resources has not permitted us this year, like last year, to write off capital expenditure on air raid precautions against revenue. The cumulative cost of all air raid precaution expenditure, both capital and revenue, to the 31st December, 1941, was over £3,400,000. Our interests are indissolubly tied up with those of the nation and we have special responsibilities by reason of the magnitude of our interests, the national needs for the products we make, and their vital importance in war. We shall endeavour fully to discharge them, and I am confident that every man and woman associated with the company will spare no effort to contribute his or her part.
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