COMPANY MEETING
BEECHAMS PILLS, LIMITED
RECORD PROFIT MR. PHILIP E. HILL'S SPEECH
THE tenth ordinary general meeting of Beechams Pills, Limited, was held in London on May 26th.
Mr. Philip E. Hill (Chairman), presided, and said (in part) :— The profit of L600,908, although a record in the Company's history and an increase over that of last year of £59,498, is disappointing in so far as the home sales are concerned. This is attributable entirely to the exceptionally mild winter experienced, and the adverse effect it has had on the sale of the Company's seasonal pro- ducts. Under normal conditions the profits should have been greater. The result of the export business, however, is most encouraging and shows an increase of more than £20,000.
In passing, it may interest you to know that some 90 years ago the business of Beechams Pills was founded by the late Thomas Beecham, who conducted his business, among other things, with the aid of a large umbrella in some of the market places of England, and today the Beecham factory at St. Helens produces over IZ,000,000 pills per week, and this is entirely apart from the production of the Beecham factories in different parts of the world. This is a striking tribute to the curative value of the product. Our latest effort is in the two-anna pack, which will be marketed in India during this year.
The directors have continued their policy of extensive advertising.
Our development fund is still fathering new products and our overseas trade. The directors recommend again bringing this reserve up to Lioo,000.
The new laboratory at the Royal Northern Hospital has now been completed and was opened by H.R.H. the Duchess of Gloucester in October last.
The Company owns and markets the following proprietary articles : —Beechams Pills, Beechams Powders, Beechams Lung Syrup, Cassell's Tablets, Veno's Lightning Cough Cure, Cicfa, Dinneford's Magnesia and Tablets, Germolene Ointment and Soap, Holloway's Pills and Ointment, Iron Jelloidi, Lactopeptine, Nicocin, Phensic, Phosferine, Ashton and Parsons Baby Powders, Phyllosan, Shcrley's Dog and Cat Foods and Medicines, Yeast-Vite Tablets, Amami Shampoos and other products. You will probably like me to say something about the future trading prospects. I will content myself by saying that our business was never so well organised or served by such an excellent and enthusiastic staff as at present. Ours is a business of the people, and it is reasonable to anticipate still further expansion.
The proposed bonus issue of Preference shares, redeemed at average periods over the next ten years, will require, with the premium on redemption, an additional sum Of L45,000 annually. This should be provided without imposing difficulties on the Company in continuing the payment of a dividend of 85 per cent., provided, of course, that unforeseen events outside the control of your Board do not arise, and I am sure you will all join me in hoping that they will not. Your directors are of opinion that it would be of enormous value to our business if more of our customers could have a financial interest in our Company and so benefit by its prosperity. Our existing 5s. Deferred shares fluctuate in price during a year between say 5os. and 65s. a figure beyond the means of the small investor, who constitutes the backbone of our business. Your directors are exploring every channel to see whether it is not possible to devise a scheme whereby an interest in your Company could not be offered in a unit with a market purchase price around 5s. I would not be misunderstood. No fresh issue of capital for cash is contemplated, and if a scheme is devised, it will be submitted to every shareholder for approval. Your directors have felt for a long time past that the present share capital of the Company did not represent the intrinsic value of the assets. Accordingly they have revalued, with the assistance of Messrs. Price Waterhouse and Co., the investments in our subsidiary companies, with the result that Messrs. Price Waterhouse and Co., have advised the Company that the value of such investments was not less than £2,500,000 and the value of such investments has accordingly been placed at that figure and the increase in value placed to a capital reserve account. From this capital reserve account you will observe that the sum of L300,000 has been transferred to general reserve and you have received notices convening the necessary meetings to capitalise this sum immediately into Five per Cent. Redeemable Cumulative Preference shares cf £I each, which it is proposed to issue as a bonus credited as fully paid to the holders of Deferred shares in this Company, in the pro- portion of one such Li share for each four Deferred shares of 5s. each at present held. These shares will be redeemed by the Company out of profits on or before March 31st, 1949, or by yearly drawings at 22s. per share.
The Chairman then dealt at length with resolutions relating to the conversion of the 8 per cent. Cumulative Participating Preferred shares of £I to io per cent. Cumulative Preferred shares and the increase of the Company's capital to L2,600,00o, which were to be voted upon, later, at special meetings. In conclusion, I think you have all every reason to be grateful for the results ;hat have been achieved during the past year, and in addition, we should be happy to know that we possess a business which today is stronger than it ever has been, and under ordinary conditions should continue to make increasing profits both in this country and in other parts of the world.
The report and accounts were unanimously adopted and a vote of thanks accorded the Chairman, directors and staff. At the subsequent meetings the capital proposals were approved.
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