HOSCOTE RUBBER ESTATES, LIMITED
MR. - ERIC MACFADYEN'S SPEECH
PRESIDING at the annual meeting of HosCote Rubber Estates,' Ltd., held on Thursday, October 14th, at 1-4 Great Tower Street, E.C. 2,
Mr. Eric Facfadyen (the Chairman) said : • I presume we may take the report and accounts as read, but have the following observations to make on them.
After adjustments in detail, due to re-survey, our aggregate acreage is shown as 4,725 acres planted. Divided into our issued capital, this equals £35.2 per acre. The significant changes in our balance-sheet are the higher balance at credit of profit and loss account of £25,483 8s. 2d. as against £11,848 16s. 6d and the rise in our cash and gilt-edged investments from -£30,029 its. 9d. to £42,343 I2S. sod.
Our larger crop, amounting to 1,585,433 lbs., was sold for £60,523 7s. 3d. net, which compares with £34,438 13s. 3d. realised for the 1,287,067 lbs. accounted for a year ago. The expenditure On the crop in the East was £32,035 55. 7d. against £24,475 8s. 8d. ; practically the same cost per lb. having been incurred, while there was an improvement in the selling price of almost 21d. per lb. Perhaps I can best illustrate the progress in working conditions by pointing out that earnings per acre came out at £5 13s. compared with £r 17s. Expenditure in London was slightly reduced.
Having experienced such -satisfactory results we have not hesitated again to charge profit and loss account with the whole cost incurred in the year on new buildings and plant and upon the programme of replanting and special cultivation in hand. These items total £6,355 55. I;d.3.and we are.then.left With £21,681 Is. 3d., which will permit of our paying a so per cent, dividend and raising the carry forward by £2,293 5s. 3d. to £6,o95 125..2d.
Our standard production has been raised by successive stages to 2,333,799 lbs,, equivalent to 494 lbs. per acre. This indicates that the assessment authorities are now satisfied that previous assess- ments did less than justice to our true production capacity. The output for the year we are reviewing was obtained by tapping arrangements a good deal more constrvative than A.B.C.
Under the regulation regime it is impossible to forecast outputs, but if we are permitted to produce 1,900,00o lbs., as we probably may be, during the current year we shall have no difficulty in doing so on A.B.C. or equivalent tapping. Forward sales of 524,160 lbs. have been made for delivery during the period at9id.per lb., which should go some way to counteracting the recession in the market. I do not yet foresee any material reduction in cost per lb.
The earnings shown in the accounts before you represent over 16 per cent. on the issued capital ; but I need not remind those of you who have been shareholders for some years that the issued capital stands at its present figure only after drastic writing down.
The report and accounts were adopted.
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