COMPANY MEETING THE GREAT UNIVERSAL STORES R ECORD PROFIT
Tnz twentieth ordinary general meeting of the Great Universal Stores, Ltd., was held on June loth at the Institute of Chartered Accountants, London, E.C.
Sir Archibald Mitchelson, Bt. (the Chairman), said that their business during the year had thriven in a satisfactory manner. The resulting profit of £408,714 showed a gratifying increase and was a record in the history of the company. He was particularly pleased to be able to say that they had received a substantial revenue from the new mail order business they acquired last year.
For some time they had been investigating with a view to pur- chasing a 40-year-old established and progressive business of a kindred nature, and which they were satisfied would fit admirably into the structure of their organisation. The profits of the business had been substantial and during the last two years had averaged £x2o,000. They had now completed negotiations for the acquisition of this undertaking—Alexander, Sloan and Co., Ltd., of Glasgow— which they felt assured should prove a valuable asset. In addition they had acquired another smaller but well-known mail order business at present earning some £20,000 a year, namely, Samuel Driver, Ltd., of Leeds.
In connexion with these acquisitions and notwithstanding the fact that from their own internal resources and other funds available they could provide the necessary finance, they proposed taking advantage, for this purpose, of an offer from influential people in the City of London to raise a million pounds in the form of 44 per cent. redeemable debentures. The intention was to make the issue shortly and the shareholders of G.U.S., both ordinary and preference, would receive priority in the matter of allotment. The proceeds of the issue would fully provide for the purchase price of these two businesses, whilst the profits on last year's basis, after providing for the interest of £45,000, would leave, apart from anticipated expansion of their earnings, a balance of approximately too,000 of additional earnings.
Mr. Isaac Wolfson (managing director), in seconding, said that their increasing volume of business had been achieved through their constant endeavour to see that their customers were able to spend their money to the best advantage by their obtaining full value for every penny spent.
With regard to the future, he had seen five years of continual progress in the development of the company, and provided trading conditions remained normal, he felt that with the constructive programme which they had planned for the next few years, they had every reason to feel optimistic as to the prospects of the company.
The report was adopted and the payment of a final dividend of 3o per cent. (making 5o per cent. for the year) less tax, was approved.
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