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26-10-2018, 08:37
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The conversion of Guinness to a public company was very successful As was the company itself.

In 1890, Guinness made getting on for three-quarters of a million quid. A huge amount for the time.


"A. Guinness, Son & Co., Limited.
The directors’ report for the year ended June 30 last states:- “The results of the financial year, after making provision for bad debts, and including dividends on investments and interest on loans, show a profit of £719,665 9s. 9d. This, together with £25,641 15s. 11d. carried forward from the last account, makes a total of £745,307 5s. 8d. After providing for the debenture interest, the dividend on the preference stock, the balance of income tax, and the interim dividend paid in March on the ordinary stock, there remains available for appropriation the sum of £387,284 9s. 2d., as shown in the profit and loss account. The directors propose to apply this sum as follows:— To add £100,000 to the reserve fund and £30,000 to the depreciation fund; and, subject to the approval of the general meeting, to pay to the ordinary stockholders a final dividend of 9 per cent. for the half-year, making, wit the interim dividend of 6 percent. paid March 1 last, a total dividend for the year ended June 30, 1890, of 15 per cent., free of income tax. These payments will absorb £355,000, thus leaving a sum of £32,284 9s. 2d. to be carried forward to the next account. Sir Edward Guinness and the Hon. John Baring retire by rotation.

“Sir Edward Guinness has informed the board, to their great regret, that he cannot offer himself for re-election, as he finds some relief from work to be imperativer necessary. One of his main objects in the formation of the Company was to enable him to withdraw from the active supervision of a business requiring so large an amount of time and constant attention. All matters connected with the change from a private firm to a limited company have now been satisfactorily arranged, and as the Company is working successfully in every way,- Sir Edward feels confident that he can, without detriment to its interest, take the contemplated step of retiring from the management.""
"The Brewers' Guardian 1890", 1890, page 262.
I know Guinness sold around 1.3 million barrels in 1889. meaning they were making almost 11 shillings per barrel. Which is a pretty decent profit. And their sales were still increasing, as you can see from this table.




Guinness sales 1880 - 1890



Extra Stout
Porter
other
total



Year
Britain
Ireland
total
Britain
Ireland
total
FES
Export
total
Britain
Ireland
FES/Export
total


1880
207,695
201,348
409,043
2,208
435,127
435,335
53,890
14,796
68,686
209,903
637,475
68,686
916,064


1881
204,073
201,546
405,619
1,686
465,190
457,586
54,739
14,053
68,792
205,759
657,736
68,792
932,317


1882
235,583
230,053
465,636
1,867
515,170
517,037
66,247
15,225
81,472
237,450
745,223
81,472
1,064,145


1883
227,572
201,007
425,579
854
407,681
408,535
57,154
11,817
68,971
228,426
608,688
68,971
906,085


1884
259,481
235,860
495,341
1,765
544,210
545,975
71,122
11,361
82,483
261,246
780,070
82,483
1,123,799


1885
260,488
237,584
495,072
1,923
597,594
599,517
74,538
10,947
85,485
262,411
835,178
85,485
1,183,074


1886
274,294
239,171
513,465
1,394
621,089
622,473
71,707
10,321
82,028
275,678
860,260
82,028
1,217,966


1887
290,501
245,547
536,438
1,274
659,725
660,699
74,501
9,634
84,135
291,775
905,572
84,135
1,282,576


1888
302,145
245,766
547,911
1,208
689,438
690,646
81,660
9,086
90,746
303,353
935,204
90,746
1,329,303


1889
308,223
243,337
551,560
1,054
690,453
691,507
80,690
9,837
90,527
309,277
933,790
90,527
1,333,594


1890
352,109
261,359
613,468
1,257
686,491
687,748
79,335
7,732
87,067
353,666
947,850
87,067
1,368,383


Source:


"A Bottle of Guinness please" by David Hughes, pages 276-279



Happy days for anyone lucky enough to have got hold of some Guinness shares. 15% is a very decent return. Of course, those ordinary shares would have been retained by the directors and family members,

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