A STRONG POSITION - .
This was the position 10 years ago when, after writing off 25 years of accumulated depreciation reserves and debenture stock sinking funds, the fixed assets stood in the books at the net figure of 16,400,000. They now stand at £6,237,000, or £163,000 less than 10 years ago. The value behind this book figure, however, has increased enormously. Today, said Mr. Stewart, every 1100 of fixed assets represents 36 tons of annual productive capacity, which compares with 20 tons 10 years ago. Moreover, the efficiency of all works has been increased and, said the Chairman, "if we assume the cost of production in 1925 to have been 100, then the cost last year was 58 per cent., a reduction of 42 per cent. This reduction has been effected despite the additional cost due to further improvements in the quality of our Blue Circle cement and Ferrocrete, and the increased cost of social services and welfare work, which we do not grudge." Thus, today the value of the fixed assets has been improved so that they not only more truly represent the figure at which they stand in the balance-sheet, but are of greater value since it would cost more to create them today. During this same period also the consumer has benefited by a reduction in selling prices. Altogether, Mr. Stewart's speech conveyed the impression that in this great industry the Directors have shown real skill, energy and foresight, with results favourable to the share- holders and also to the Cement industry.
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