CARRERAS, LIMITED
RECORD PROFIT
THE thirty-ninth annual general meeting of Carreras, Limited, was held on December 30th at Arcadia Works, London.
Sir Edward S. Baron, the chairman and managing director, who presided, said: During the year under review several important events have occurred which have had considerable repercussions on our business. In the first place, as a result of the extension of the war into the Pacific, we have lost some extensive and profitable markets.
I am pleased to inform you, however, that a steady flow of our products has reached His Majesty's Forces in the Middle East and elsewhere in large quantities and we have met all the demands made upon us in these directions. This also applies to supplies for the Royal Navy and the Merchant Service as well as all the other fighting and defence services which it is our privilege and duty to serve. We have a special department for dealin* with parcels for the Red Cross and prisoners of war, and the work is increasing as every week goes by.
The second occurrence was the unprecedented increase of no less than los. per lb. in the tobacco duty which was imposed in the last Budget.
The third event is the scheme for interchange of manufacture voluntarily entered into between the principal manufacturers, which will enable a considerable saving of transport to be achieved. Every precaution is being taken by all the interests concerned to ensure that the particular blends, processes, and standards of quality of each manufacturer are maintained under the new conditions.
It is my duty to make clear to you that the record profit of £3,121,988 has partially resulted from advantageous circumstances of a non-recurring character. Most of our materials used in the past year were purchased in easier days, and the benefit of this is reflected in the accounts before you. After providing for depreciation on a generous scale the net balance carried to the appropriation account is £3,035,038. From the net profit must be deducted £277,477, the amount of dividends, less tax, already paid, and no less than £2,459,330 for provision for taxation. It is proposed to pay a final dividend of r5 per cent. on all classes of ordinary shares, making 271 per cent, for the year.
With regard to the future, it is of course impossible to forecast the trend of events and I must content myself with saying that, provided we have no unforeseen setback or dislocation, we should be able to present quite favourable results to you in a year's time.
The report was adopted.
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