GAUMONT-BRITISH PROBLEMS
Year after year the accounts of the Gaumont-British Picture Corporation are the target for criticism, and year after year the chairman soothes the troubled breasts of share- holders with hopes of better things to come. So it has been again and, in spite of some spirited opposition, the report and accounts have been adopted. I cannot say that Mr. Isidore Ostrer's survey throws much light on the group's position. The omnibus profit figure, which includes a fortuitous profit from debenture redemptions, is left as mysterious as before, and I cannot find any reference in the speech to a consolidated balance-sheet. There has, in fact, been no consolidated statement since March 31st, 1936, but last year Mr. Ostrer said that owing to the substantial outside interests and the complexity of their rights, the board con- sidered that it was adopting the most practical policy by concentrating on the liquidation of a number of the com- panies and increasing, in certain cases, the interest in companies not wholly owned. The object, it was stated, was to move towards such a real consolidation as would make consolidated accounts useful and intelligible to shareholders.
What has been done? Apparently, very little, for Mr. Ostrer now tells us that it may be possible during the current year to take the first definite step towards the consolidation of the Corporation's theatre interests in practical form. Nor is it very reassuring to be told that in its relations with the inspector appointed by the Board of Trade the Corporation, while anxious to facilitate the inquiry as far as it can, feels bound to consider " other interests," and is acting on the opinion of eminent counsel as to its duties. As to the com- pany's prospects, Mr. Ostrer is cautiously hopeful. Sound equipment is being modernised ; Gaumont - British Distributors has again had a " very satisfactory " year ; the Baird Television investment is still regarded optimistically, and there is a possibility of a resumption of ordinary divi- dends next year. This is encouraging news, but I still feel that shareholders should continue their efforts for more information.
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