COMPANY MEETING

ASSOCIATED PORTLAND CEMENT MANUFACTURERS

WAR-TIME PROBLEMS EXPORT DRIVE SIR P. MALCOLM STEWART'S ADDRESS

THE forty-first ordinary general meeting of The Associated Port- land Cement Manufacturers, Limited, was held on Wednesday, April 3rd, at 21 TothiII Street, Westminster, S.W.

Sir P. Malcolm Stewart, Bt., O.B.E., D.L., LLD. (Chairman of the company), said: The profit on trading amounts to £879,282; it includes the sum due for compensation and receivable under the working agreement with the British Portland Cement Manufac- turers, Limited. The profit compares with £1,070,381 earned in the previous year, a reduction of £191,099, largely accounted for by increased provision for taxation.

Interest and dividends on investments at £523,025 show a re- duction of £66,999. The final dividend received on the British Portland Cement Manufacturers, Limited, ordinary stock was less by 21 per cent. than in 1938. Further the final dividend on the ordinary stock held in Alpha Cement, Limited, which was included in the previous year's accounts, has not yet been declared and, therefore, is not included in this year's accounts.

The income earned on the total of trade and liquid investments is approximately 14; per cent. The total revenue for the year at £1,402,925 compares with £1,661,209, a reduction of £258,284. On the debit side of the profit and loss account you will see the only notable difference this year is that no addition has been made to general reserve whereas £60,000 was added in the previous year. There remains a balance of profit of £741,981, which compares with £940,306 in 1938. Out of this sum there had been paid at the date of the balance-sheet the preference dividend for the first half-year £68,750 and an interim dividend of 71- per cent. on the ordinary stock, absorbing together £368,750. Since December 31st there has been paid the preference dividend for the second half- year absorbing a further £68,750, leaving a balance of £304,481.

We are able to recommend the payment of a final dividend on the ordinary stock of 7+ per cent., making 15 per cent. for the year, which compares with 20 per cent. paid in the previous year. There will remain a balance of £4,481 to be added to the carry- forward, which will then stand at £213,180.

During the year under review we suffered a variety of vicissi- tudes. In the early months deliveries were disappointing and the outlook uncertain; later on trade improved and with brighter pros- pects prices were reduced to the consumer. We felt that with the promise of fairly stable costs of production and the prospect of an increased turnover once again our policy of keeping down prices to the consumer could be embarked upon.

However, the position was speedily changed on the outbreak of war in September when municipal and private building rapidly eased off. We were, nevertheless, so fortunate as to receive a considerable tonnage of orders in respect of Government and A.R.P. work which it became necessary to accelerate; these sources largely filled the gap. Thus favoured and with the help of the good demand experienced in the summer months we were able to achieve aggregate tonnages of production and deliveries of Blue Circle Portland Cement slightly in excess of those recorded in the previous year despite some falling off in the autumn.

CEMENT MAKERS' FEDERATION

When addressing you last year I referred to the advantages of well-planned trade organisations from a national point of view. It is particularly satisfactory that the outbreak of war not only found the Cement Makers' Federation prepared but demonstrated the soundness of the principles upon which its co-operation is based. You will agree there is justification for this statement when I inform you that the Minister of Supply, after examination of the position in the early days of the war, was satisfied that he could at any rate for the time being leave to the War Executive Com- mittee of the Cement Makers' Federation, under the able chairman- ship of Lord Wolner, the responsibilities of carrying on with the Ministry of Supply negotiations on matters affecting the industry.

The Minister further indicated that he regarded the appointment of a controller as unnecessary at the present time in view of the efficiency of our organisation. It has proved most gratifying to those who have for long years worked for co-operation in the industry to find that when the test came our Federation was not found wanting. It is serving a good purpose in war-time and will, I trust, prove its value when peace comes, for peace will bring in its train industrial problems of a national character and magni- tude not yet experienced. For those problems new methods may have to be applied and novel solutions found. There will be a call for clear thinking and a progressive outlook when the day comes to grapple with post-war difficulties.

EXPORTS

We were successful in shipping a considerably increased tonnage of Portland cement for export during the first eight months of the past year. It took some time to settle down to the changed conditions brought about by the war but I am glad to say that our export department, under Mr. Chapman and his capable staff, succeeded in maintaining the shipments made during the last four months of the year, as compared with the corresponding period of 1938.

Following the call by the Government for an export drive we are straining every nerve to increase our export tonnage by open- ing up new markets wherever opportunity affords. In this matter we are working in close collaboration with the Export Council of the Board of Trade.

CEMENT AND CONCRETE ASSOCIATION

The Cement and Concrete Association was established by the industry in 1935. Its main object is to give practical assistance to every user and potential user of Portland cement. When its advice is sought it is prepared to help technically wherever Port- land cement is used, be it in respect of structures of magnitude or of the simple requirements of the garden.

Widespread publicity is employed. In five years over ten million brochures, leaflets and technical papers have been issued. These met with great success ; that dealing with concrete for garden purposes resulting in over half a million people writing for copies. Thus it is seen that through practical help and powerful publicity an earnest 'endeavour has been put forth to make Britain concrete minded.

With the advent of the war the functions and duties of the association have undergone a marked change. Early it oflered its voluntary services to the Home Office in connection with A.R.P. work and the association and the majority of its technical staff have been taken over to assist in this and a great variety of other work where concrete is in use by many Government departments.

RETIREMENT OF MR. ALFRED STEVENS

Shareholders will, I am sure, share the regret which the directors feel through the retirement at his own request of Mr. Alfred Stevens. This took place at the end of last year. Mr. Stevens was the first secretary appointed to the company and became a managing director in 1906. Apart from the valuable and outstanding services rendered during the period to this com- pany our gratitude is in particular due to him for the prominent and successful part he played in the formation of the British Portland Cement Manufacturers, Limited, not merely because of the skill and tact with which he conducted the major negotia- tions but because of the complete confidence which the vendors and finance houses interested had in him, a confidence maintained to the end by all who had the pleasure of being associated with him. Indeed, there is not one of us but feels a deep sense of personal loss at his retirement.

Our appreciation of his sterling character is shared by the many City friends of the company, as well as by those shareholders and customers who came into personal contact with him. The industry has lost an outstanding figure of recognised integrity and charm. We all wish him long years of good health in which to enjoy his well-earned rest. In September last the board appointed Mr. G. H. E. Vivian a managing director. You will recollect that Mr. Vivian was for many years the general manager and treasurer of the companies in Mexico in which we are interested. He largely contributed to the successful building up of the businesses in that country In 1936 he was appointed a director of this company and took charge of our overseas interests. We have had considerable experience of Mr. Vivian's administrative abilities and of his practical knowledge of all departments of the cement business. Consequently, it was with complete confidence that the board, in September last, appointed ham a managing directors and asked him to take over Mr. Alfred Stevens' duties on his resignation.

THE FuTuRs

With regard to the prospects for the current year, it is impos- sible to make a confident forecast. Owing to abnormally hard frost and heavy downfalls of snow bringing building operations generally to a standstill the trading results for the first two months of the year were exceptionally poor. The demand for our products is improving with the better weather, but it is almost entirely dependent on Government, A.R.P. and export orders. The volume of these is uncertain, and I am bound to warn you that we cannot expect under war conditions a repetition of the results achieved last year. We are in a sound poiition to face difficult trading conditions and you can rest assured we shall do our utmost to overcome them; but it must be remembered that the exigencies of war are paramount and that all individual and collective interests should be subordinated to the securing of victory.

I wish again to take the opportunity of thanking our staff attached to all departments of our business and all employees at our various factories and depots both at home and overseas for their loyal support and co-operation, and in particular to thank those who through their hard work have so successfully overcome the abnormal difficulties and inconveniences due to the war.

The report was unanimously adopted.