ALLIED BAKERIES EXPANSION
Allied Bakeries is one of those undertakings in the phase of rapid expansion. Since it was formed as a public com- pany in 1935 it has pursued a policy of acquiring other busi- nesses, and now controls, apart from 26 bakeries and about 200 shops, the prosperous biscuit and confectionery business of Weston Foods. Profits have naturally been rising, and last year an ordinary dividend of 15 per cent. was paid out of earnings of over 27 per cent. Gradually the finances of the group are being strengthened, but it must be kept in mind that the consolidated balance-sheet shows a group goodwill figure of £1,507,916 out of total assets of £4,574,835. This goodwill is equivalent to about three years' earnings. The outlook, to judge from Mr. Garfield Weston's survey at the annual meeting, is encouraging for, as he emphasised, there are substantial benefits to be reaped from the company's programme of modernisation and re- equipment of bakeries and improvements in service. He also attached some importance to what he described as the inherent stability of the industry as a whole, experience showing that the bakery and the biscuit trades had never been severely depressed at the same time. Allied Bakeries 5s. ordinaries, at 12s. 6d. xd., yield 6 per cent. on the 15
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FINANCE AND INVESTMENT
(Continued from page 162) per cent. dividend. They are a speculation at this early stage of the group's development but may easily prove a progressive holding.
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