BEECHAMS PILLS, LIMITED
MR. PHILIP E. HILL'S SPEECH
THE thirteenth ordinary general meeting of Beechams Pills, Limited, was held on Thursday, August 28th, at the May Fair Hotel, London, W.
Mr. Philip E. Hill (chairman of the company) presided. The chairman said: For the ninth successive year our trading profits show an increase. The profit for the year amounts to £1,085,893, which is comparable with £1,055,615 for the preceding year. This figure is arrived at after providing in the accounts of two of the subsidiary companies £97,758 for the redemption of redeemable preference shares (you will appreciate that this cost the company, including tax, some £195,000). In addition, we have increased our reserves and carry-forwards in the accounts of subsidiary companies. Moreover, we have not raised our selling prices since the outbreak of war, although our costs of production and overheads during the year under review have increased by nearly £350,000 as compared with 1939, so I am sure you will agree that when all these things are taken into consideration we have every reason to be satisfied with the results achieved.
ABOLITION OF STAMP DUTY
Our report and accounts indicate that our contribution to the National Exchequer for the year is estimated to amount to over £I,000,000. Since we last met Parliament has passed the Pharmacy and Medicines Act, 1941, one of the results of which will be the abolition of the Medicine Stamp Duty, as and from September 2nd next, which, as far as this company is concerned, amounted last year to 3066,00o. Generally, it is hoped that the new Act will improve the status of proprietary articles and patent medicines. The directors have decided that the full benefit of the savings effected as a result of the passing of this Act shall be given to the public.
Your board came to the conclusion at the outbreak of war that it would be advisable to carry as large stocks as possible, and in pur- suance of this policy they have (as shown by the balance-sheet) increased the bank loans.
It is no easier to forecast the future today than it was a year ago, but it is necessary to issue a word of warning, and that is if costs of production continue to increase we shall ultimately be bound to raise selling prices.
The chairman concluded by moving the adoption of the report and accounts.
Mr. J. Stanley Holmes, M.P. (managing director), seconded the resolution, and it was carved unanimously.
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