COMPANY MEETING

LONDON BRICK COMPANY

DIFFICULT TRADING CONDITIONS NEED FOR POST-WAR PLANNING SIR MALCOLM STEWART'S REVIEW

THE forty-first annual general meeting of the London Brick Co., Ltd., was held on March 18th at the Connaught Rooms, Great Queen Street, London, W.C.

Sir P. Malcolm Stewart, Bt., O.B.E., LL.D., D.L., J.P., the chair- man of the company, presided.

Mr. A. Guthrie Stewart, one of the secretaries, having read the notice convening the meeting, and Mr. F. H. Parrott, F.C.A., representing the auditors (Messrs. Derbyshire & Co.), having read the report of his firm, The chairman. said : Ladies and gentlemen,-I presume it is your wish to take the report and accounts as read. (Agreed.) If you will refer to the liabilities side of the balance-sheet you Will notice that sundry creditors and accrued charges at £269,781 show an increase of £38,174 on last year's figures, due mainly to increased fuel and other purchases, and to higher outstanding railway charges in respect of heavier deliveries made towards the close of the year.

RESERVE FOR TAXATION STRENGITIENED

The reserve for taxation and contingencies. has been strengthenea by a further £70,000 to make increased provision for taxation.

On turning to the assets side of the balance-sheet, you will observe that the item of works buildings, &c., and motor-vehicles is reduced by £69,973 by sundry sales effected and in respect of the normal depreciation of motor vehicles. In recent years there has been a net addition to these assets, the capital-expenditure added exceeding the depreciation on motor-vehicles charged through our transport account.

For general depreciation £100,000 has been written off, the same amount as that provided in 1939. The total of these fixed and other assets at £1,9oo,000 shows a reduction 9f £170,000 on the previous figure.

Stocks in trade have fallen by £26,203, and the realisation of brick stocks would have brought the figure lower but for the increase in the stocks of fuel and other stores. The- sundry debtors and advance payments are up by £215,047 owing to the increased volume of trade in the latter months of the year.

INCREASED LIQUID INVESTMENTS

Liquid investments have been increased by £99,442 and they stand in the balance-sheet below market price.

The next item, a loan of £200,000 free of interest to H.M. Treasury, will, I am sure, meet with your approval. If this is added to the cash at 'bankers and British Government securities these assets at £580,520 then show an increase of £58,283 on the figure of the previous year. The total of- investments and cash at £1,059,351 is up by £157,725. Included in British Government securities is £275,000 subscribed for National War Bonds.

PROFIT AND Loss ACCOUNT Turning to the profit and loss account, you will see that the profit from trading amounts to £337,319, an increase on the previous year of £21,827, and that interest and income from investments are down by £3,847. The total revenue at £354,325 is up by £17,981.

CURRENT YEAR'S PROSPECTS

My forecast of the prospects for the current financial year must obviously Ape hedged with caution. Whilst it is probable that the demand may abtorb for a time such production of bricks as can he attained, it must be borne in mind that we are faced with increasing difficulties of production and it will be no easy task to maintain our present degree of efficiency. "Assuming the strength of the existing demand continues, which I anticipate, then the results will depend upon our successfully maintaining our present rate of production which, so far, shows an improvement on that attained last year.

EMPLOYEES' SUPPORT OF NATIONAL SAVINGS

I am glad to inform you that our employees have responded well to the appeal of the National Savings Association. I am sure that our shareholders will be gratified to learn of the excellent support given by our employees to this movement. It is with pleasure that I take this opportunity of thanking our staff attached to all departments of our business and all employees at our various works and depots for their loyal support and co-operation.

The 'chairman concluded by moving the adoption of the report and accounts.

Mr. A. T. Worboys (deputy chairman) seconded the resolution, which was carried unanimously.

The auditors, Messrs. Derbyshire & Co., having been reappointed, the proceedings terminated with a hearty vote of thanks to the chair- man, directors, and staff.