BRITISH TYRE AND RUBBER COMPANY
SIR WALROND SINCLAIR ON THE OUTLOOK
THE annual general meeting of the British Tyre and Rubber Company, Limited, was held on April 23rd at the registered office of the company, Herga House, Vincent Square, London, S.W.
The Chairman said: The net profit for the year under review (subject to taxation) amounts to £337,460, to which must be added £72,915 brought forward from the previous year, making a total disposable balance of £410,375. From this total we calculate it is necessary to set aside £200,000 for taxation, and prudent to allocate a further £25,00o to contingencies reserve, which, in consequence, will now stand at the round amount of £150,000.
BENEFITS OF CONSERVATIVE POLICY
Having regard to the uncertain future outlook we have this year stepped up to E25,000 the writing off of goodwill, trade marks, brands, &c., thus accomplishing one of our main objects in eliminating from the balance- sheet this intangible but nevertheless most valuable asset, which origin- ally stood in the books at £205,000. At the same time a further £25,000 has been added to the general reserve, which now reaches the total of £275,0oo.
During the year the Cumulative 71 per cent. Preference dividend has been paid, requiring (after deduction of tax) £11,531, and an interim dividend of 31 per cent. (less tax) was paid on July 25th last on the Ordinary shares, absorbing £15,570. These allocations, together with the small item of £133 premium and expenses on redemption of Deben- ture stock, reduce the available balance as shown in the profit and loss account to £107,961.
In order to distribute dividends as evenly and regularly as circum- stances permit, your directors decided on February tith of this year to pay a further interim dividend of 4+ per cent., together with a cash bonus of 3 per cent. on the Ordinary shares, absorbing £33,750, after the deduction of income-tax. As it is not proposed to recommend any further distribu- tion for the year, the amount to be carried forward is £74,211, being £1,296 higher than brought in from the previous account
EFFECT OF RESTRICTION ON CONSUMPTION
The volume of your company's business continued at the abnormal high level during the earlier months immediately following the close of the financial year, but the introduction of Government restrictions in the consumption of crude rubber became fully effective throughout the manufacturing industry on February -nth last.
The report and accounts were unanimously adopted.
Previous page
