COMPANY .4iEE1;' CS
CARRERAS, LIMITED
PROFITS EXCEED £2,204,000
THE thirty-seventh annual general meeting of Carreras, Ltd., was held on December loth in London.
Mr. Edward S. Baron (chairman and managing director), who presided, said: The net profit for the year is £2,122,379, which is yet another record for the company. This result, achieved in a year of unprecedented difficulty, is a sure indication of the unvarying quality of our products and the reputation which we have won in a highly competitive field.
The profit available for distribution amounts to £2,416,482, from which it is necessary to allocate the huge sum of £1,072,955 for taxation. Various observations and representations have been made recently regarding the too per cent. rate of Excess Profits Tax, and most of these I would like to endorse. In the case of this company our profits in 1936, one of the standard years, were £1,277,000, and in successive years there has been an increase, until the past year shows a profit of £2,122,000 ; these are not increases due to war conditions but brought about by the progressive development of our business.
It is proposed that a final dividend of 15 per cent. shall be paid, making 26f per cent. for the year, which will necessitate reducing the carry-forward slightly to £276,447. In spite of the many diffi- culties of the past year we are now working at full capacity, and with the opening a few weeks ago of an auxiliary factory we are able to produce finished goods to the full quota of tobacco we are allowed to clear from bond, which, as you know, is now 90 per cent. of former usage.
Turning to our export trade, the policy we have followed with our oversea business during many years has proved to be of great benefit to the company. First, all our oversea factories are in the Empire ; and secondly, our losses through customers in enemy- occupied countries are negligible. Thanks to our wonderful Navy we are still able to ship considerable quantities of our goods to several parts of the world.
Looking back over the past year, we are thankful to have come through so well and to have escaped all but very minor damage to our buildings.
We are very conscious of the fact that there will be many difficulties and problems to, be faced in the coming year, but with the excellent co-operation of our staff and workers your board feel that they can meet them with courage and confidence.
The report and accounts were unanimously adopted.
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