COMPANY MEETING TELEPHONE RENTALS
RECORD NEW BUSINESS THE annual general meeting of Telephone Rentals, Limited, was held on June loth at Southern House, London, E.C.
Mr. Fred T. Jackson (chairman and managing director) said that all subsidiaries had traded at a profit for the year under review. The operating companies had made considerable progress, and the new rentals secured by these companies constituted a record. Trade generally during the year was most satisfactory, and it was logical that part of the increase in the rent roll should be attributed to the satisfactory industrial conditions prevailing throughout the country. However, they were also entitled to attribute a big propor- tion of the increase to the development of their sales promotion plans, and the directors were gratified with the present position, as it indicated that their policy had been proved to be sound and progressive.
Their Australian Associated Company had earned a substantial profit and continued to make satisfactory progress. During the first five months of the current year earnings were running at a higher level, and so far there was no indication of anything in the way of depression.
This time last year he was able to report that the year under review had been one of expanding trade in nearly every direction. The same remarks applied to the year 1937, but he did not anticipate that this time next year he would be able to report so favourably on general industrial activities. Reports from their operating companies all over the country indicated a falling off in general trade, but their experience during the first five months of 1938 was that, although it was a little more difficult to secure new contracts, the new business secured was little less than that secured in the first five months of 1937: Unless, therefore, the international political situation cleared up, it was hardly likely that they could anticipate another high record in new business for the current year. This did not indicate, however, that there would be any falling off in profits earned. In fact the monthly revenue and expenditure accounts for the first five months of the year enabled him to forecast a satisfactory 1938, as their profits showed an increasing tendency.
It was proposed to increase the authorised capital to £i,000,000 by the creation of 800,000 additional ordinary shares, although these further shares would not be issued at present.
Gross dividends showed a small increase on last year, amounting to £113,672 as compared with Li x2,897. There was a decrease in expenses, with the result that the net profit amounted to £110,492 as compared with £108,254. The increase in profit was greater than was apparent from the figures, as in the previous year they brought into profit and loss account the sum of £6,146, being reserve created out of past profits no longer required. A sum of L30,000 had been appropriated to general reserve account, raising it to k140,000, and the directors recommended a final dividend of 6 per cent., less income tax, making to per cent. for the year.
The report was unanimously adopted, and the proposed increase of capital was approved.
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