DUNLOP FINANCES
Once again the Dunlop Rubber accounts are a model of clear and concise presentation of the affairs of a complex group. The figures reinforce the excellent impression created by the preliminary statement, which showed a rise in net profits from £1,500,893 to £2,853,133 and a dividend of 12 per cent. against 9 per cent. In raising the dividend the board has acted cautiously, for available earnings were equivalent to over 3o per cent. even after allowing for the substantially heavier charge for taxation. Thus, the year's profits have been drawn on to the extent of L5oo,000 to create a reserve against the 1940-41 liability, another £248,228 goes to special reserve against investments in and advances to subsidiaries, and contingencies account gets £200,000. On top of all this investments in Germany are written down to LI, and another £208,273 has been written off an investment in a subsidiary with a substantial interest in Central Europe.
From the balance-sheet standpoint the group's position is now very strong. In the consolidated statement current assets are shown to exceed current liabilities by £11,587,588, while surplus and reserves have increased on the year by £504,838 to £6,211,173. As to earnings, the prospects look good. In recent years the group has broadened the basis of its business and there should now be scope for further expansion in its important export trade.
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