COMPANY MEETING
THE LONDON ASIATIC RUBBER AND PRODUCE COMPANY, LIMITED AT the annual general meeting of the above company on May 1st, the Chairman, Mr. H. J. Welch, said:
In 1938 the rubber growing industry experienced more diffi- cult conditions than in the previous year.
PRICE.—Fortunately this company had forward sales of 756 tons of rubber at prices equivalent on the average to 11.3d. per lb. gross for rubber landed in London. The probability of an improvement in prices appeared strong enough to justify the board in keeping a considerable part of the company's output of sheet off the market. This policy was amply justified by events, and our average London equivalent price received for all grades during the year was nearly 2d. per lb. above the average London price for No. L sheet.
CROP AND COST OF PRODUCTION.—The crop showed a decrease of no less than 1,707,756 lbs., and it was produced at about id. per lb. more, which is about the extra amount per pound we spent on cultivation.
The DIVIDEND recommended for the year, including the Interim Dividend paid in October last, amounts to to per cent. Our re- commendations include a further allocation of £10,000 to the Divi- dend Equalisation Reserve. The dividend is paid on a very low nett capitalisation per planted acre—much less than one half the cost of replacement.
CONDITION OF PROPERTIES.—According to our visiting agent's reports, the estates are in first-class condition and our colleague, Mr. J. C. Henderson, has emphatically confirmed these advices, after recently visiting and thoroughly inspecting all the estates. NETT COST PER PLANTED ACRE.—Our total issued capital amounts only to about £31 12s. per planted acre. When allowance is made for surplus liquid assets, equal to £9 7s. per planted acre, the nett cost of our planted areas is only £22 5s., without any allowance being made for the value of the reserve lands of over 16,000 acres.
DEVELOPMENT AND NEW PLANTINGS.—The decision to allow rubber estates to plant during 1939 and 1940 new areas up to 5 per cent, of their previously planted areas, gives the company an opportunity of extending its planting by some 1,470 acres, and this we propose to do.
At present about 3 per cent. of our planted areas are six years old or less and the proposed replantings and new plantings for 1939 and 1940 will increase this percentage to about 6 per cent. The 1939 Cam. will be reduced and will probably cost slightly more. No part of it has been sold forward.
The report and accounts were adopted unanimously.
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