HARLAND AND WOLFF

FIGURES SHOW FURTHER IMPROVEMENT THE annual general meeting of Harland and Wolff, Limited, was held on May 22nd in the Council Chamber of the Federation of British Industries, 21, Tothill Street, Westminster, London,

Mr. F. E. Rebbeck, D.L., J.P. (chairman and managing director) presided.

The secretary (Mr. A. T. Marshall) having read the notice conven- ing the meeting and the auditors' report, The chairman said: I presume the directors' report and statement of accounts for the year ended December 31st, 1939, may be taken as read.

In common with your directors you will no doubt feel gratified that the results for 1939 show a further improvement over the figures of the previous year.

This is the more satisfactory because the greater part of the earn- ings in the year under review have been derived from the company's ordinary commercial activities—ship-building, ship-repairing, engineer- ing, etc.

I would like to stress this, for I noticed from various press com- ments following the publication of the directors' report and statement of accounts it was assumed that the increased earnings for the year are entirely the result of work carried out in connection with the country's defence programme.

During the current year, however, most of the work in hand is on Government account, and you will, I am sure, realise that all such work is subject to profit limitation, and some of the assumptions that have been made in the press might be very misleading.

With such a simple and straightforward balance sheet before you there is little need for amplification, but I would specially mention that your directors have thought it advisable to provide adequately for depreciation in view of the continuous heavy wear and tear that is taking place under the conditions of today.

ALLOCATIONS AND DIVIDEND

It is proposed that Ltoo,000 should be transferred to reserve, making the total L2oo,000 ; and this will require to be further strengthened at every opportunity in order to ensure that the company will have tha necessary reserves for carrying on the business when normal conditions return.

The dividend policy proposed, viz., 6 per cent. to the "A" ordinary shareholders and 4 per cent. to the " B " ordinary stockholders, less income-tax, will require £239,902.

In recommending this dividend your directors were natural influenced by the appeal of the Chancellor of the Exchequer in his Budget speech.

There is little that I can add to what has already been said in the directors' report on the subject of excess profits tax.

It must be recognised that the standard years are very unfair to this company.

It therefore becomes necessary for a special application to be made to the Board of Referees to arrive at what we hope will prove to be an equitable standard. This is a matter which is very much before your board at the present time.

You will see from the balance sheet the "extent to which the fixed assets of the company have been augmented during the year. This represents expenditure necessitated by the special needs of the pro- gramme of work on which we are now engaged and calls for excep- tional depreciation.

A GREAT NATIONAL ASSET

In view of the conditions under which we are working today it is not desirable that I should further amplify my remarks, and there- fore my speech has to be brief. But while for obvious reasons I cannot go into details of all the work in hand I can assure shareholders that the different works of the company, which are Proving a great national asset, are employed to full capacity as far as is possible with the labour at our disposal, and they will be still further utilised directly more labour becomes available.

I want, in conclusion, to express our appreciation of the work of the staff and workmen who are 'rendering a great National service under the strenuous conditions at present existing.

I now beg to move that the report and accounts to December 31st, 1939, together with the directors' recommendations contained therein as follows:—

(a) Transfer to reserve ; (b) Payment of dividends on May 31st on the " A " ordinary shares and " B" ordinary stock ; (c) Payment of directors' remuneration, be and they are hereby approved and adopted, and I will call upon Mr. Craig to second the motion.

Mr. John Craig, C.B.E., D.L., J.P., seconded the resolution. Before putting ;he resolution to the meeting I shall be glad to answer any questions that the shareholders may wish to ask. After questions had been asked by a shareholder, and answered by the chairman, the resolution was unanimously adopted. The retiring directors, Mr. William Strachan and Mr. John Craig, were re-elected.

The auditors, Messrs. Price, Waterhouse and Co., were re-appointed, and the proceedings terminated with a cordial vote of thanks to the chairman and directors.