WILLIAM BEARDMORE AND CO.
SIR JAMES LITHGOW'S SPEECH
THE ordinary general meeting of William Beardniore and Co., Ltd., was held on April t2th in the Council Room of the Federation of British Industries, Zr, Tothill Street, Westminster, S.W.
Sir James Lithgow, Bt., M.G., D.L. (Chairman of the company), presiding, said: The item sundry creditors, credit balances and provision for taxation is up by approximately £588,00o. This is accounted for by an increase in trade creditors and the provision made for Imperial taxation.
As you will appreciate, it is very difficult to estimate, even approximately, the company's liability to Excess Profits Tax. We have, however, set aside a sum which we are confident will meet the needs of the case.
The amount shown under the head of final dividend on Ordin- ary stock represents the rate recommended by the directors under deduction of tax. You will note that this year we have given effect to this recommendation in the published figures, altering those of last year in the comparison column so as to make them exactly comparable. The alteration seems to me to give a clearer view of the position.
The reserves have been considerably increased since last year. Depreciation and obsolescence have gone up by L145,000, a figure which your directors consider will, in addition to covering for de- predation, look after any maintenance and repairs, the carrying out of which may have been deferred due to the reasons given in the directors' report.
This year the directors have decided to create a general reserve, and you will be asked later formally to confirm the placing to the credit of that account of the sum of £300,00o as recommended.
The balance at credit of profit and loss account carried forward has, as you will see, been increased by the substantial sum of L71,012.
With regard to subsidiary companies, in view of the details which I gave you last year, I need only say that their results are very satisfactory. I ought to mention, however, that our interest in Beardmore Motors, Ltd., which I then indicated was of no direct advantage to your company's business, was exchanged during the year for a too per cent. interest in a subsidiary of that company. That exchange was effected so that Beardmore Motors might be developed by its owners in their own interest and to enable us to realise the assets of the subsidiary. Although that subsidiary company has made a loss it is only technically a revenue loss; the realisation of the assets is proceeding satisfac- torily, and should produce a satisfactory capital return. The report and accounts were unanimously adopted.
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