PROVINCIAL CINEMATOGRAPH THEATRES
IMPORTANCE OF CINEMAS IN WAR-TIME THE thirteenth annual general meeting of the Provincial Cinema- tograph Theatres, Limited, was held on Friday, March 29th at Film House, Wardour Street, London, W. Mr. Mark Ostrer (the chairman): Ladies and gentlemen, the directors' report and audited balance-sheet and accounts having been in your hands for the prescribed period I assume they may be taken as read. (Agreed.)
The net profit for the year including income from investments and transfer fees is £450,630. Adding the amount brought forward from last year, namely, £120,259, there is available for distribution £570,889. As you will see from the balance-sheet there is no change in the authorised and issued share capital. The next item is the 5 per cent. first mortgage debenture stock, which, including net interest accrued to January 31st, 1940, appears at £1,163,933. During the year 1939 £15,898 debenture stock was redeemed at par by operation of the sinking fund, in accordance with the pro- visions of the trust deed by which such stock is secured. Mort- gages outstanding remain at £930,300, and the total liability with net interest accrued to the balance-sheet date is £935,753 ; the change in respect of accrued interest having varied only slightly in comparison with last year. The reserve for income tax and national defence contribution stands at £134,289 and is greater than last year's figure by £39,875.
• The increase is due to the higher standard rate of tax and to the inclusion of N.D.C. for two years, 1938-39 and 1939-40. The provision made for taxation is sufficient to cover fully the com- pany's liability as at the balance-sheet date. On the assets side of the balance-sheet it will be seen that cash in hand remains practically unaltered. Shares in subsidiary com- panies, £1,437,305, show an increase of £5,472. Amounts due from subsidiary companies, £654,749, are increased by £26,723, which is the net effect of sundry increases and decreases on current accounts. Shares in and loans to other companies and investments: these stand at £286,798, an increase of £38,964. This increase represents further premiums paid on sinking fund insurance policies and one further investment.
Turning to the profit and loss account and adding to the year's profits of £450,630 the balance brought forward from last year, namely, £120,259, there is available a sum of £570,889. Deduct- ing from this figure the amounts appropriated to reserve for income tax and national defence contribution, depreciation reserve and debenture stock sinking fund, as already mentioned, and the divi- dends totalling £202,500 on the preference and preferred ordinary shares as shown in the accounts, there remains a balance of £205,541, out of which your directors recommend the payment of a dividend for the year of 15 per cent. on the ordinary shares amounting to £75,000, leaving a balance of £130,541 to be carried forward.
I am sure you will agree that these figures are satisfactory. In considering the results it must be borne in mind that all theatres and cinemas were compulsorily closed for practically two weeks on the outbreak of war. This closure not only caused a great loss of revenue, but in addition, we had, quite properly, to bear the burden of paying our staff.
I said some years ago that the cinema had become an integral part of the lives of the people, and under present conditions the need for entertainment is much greater The outlook for the current year is naturally very difficult to forecast, and I do not propose to do so, but I am of the opinion, which I am sure is shared by my co-directors, that, given condi- tions which are no worse than those prevailing since the war began, we shall be able to present to you accounts which will be in every way satisfactory.
The report and accounts were unanimously adopted.
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