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Watney, Combe, Reid and Co., Ltd.
The ordinary general meeting was held in London, Mr H. Cosmo O. Bonsor (chairman) presiding.
The Chairman, in moving the adoption of the report, said the, company had had a prosperous year. Referring to the accounts, he said their claim for return of excess profits duty was for something over £200,000, but there were certain deductions to be made. Sundry creditors were larger in consequence of the fire at Mortlake. That fire was very inconvenient. They had closed down their malting for the summer; they had finished their make of malt. The fire was confined entirely to the maltings; it did not touch the brewery or the manufacturing premises, but it destroyed practically all the malt that had been made in the season, and which they were hoping would be used during the months of hot weather. Consequently they had suffered no pecuniary loss because the maltings and the stock were fully insured outside their own insurance fund.
There was a big increase in the freeholds and leaseholds and in trade investments. The trade investments were up in consequence of their having acquired during the year the whole of the share capital of tho Cobham United Breweries, Limited. During the current year they had purchased several houses on the Duke of Westminster's estate. The leases were getting short; they had acquired the freeholds, and they were absolutely satisfied that this was a most excellent investment, although it took up a considerable amount of cash.
Proceeding, the Chairman said : On the whole, I think you will consider that our figures are satisfactory. Turning to our report, you will see that we recommend the same dividends as last year, and we also recommend that out of the year's income £200,000 should be carried to reserve, and that any repayment of excess profits duty should be carried to the same reserve. Those sums will be invested in our business, if they have not already been so invested. That reserve, therefore, will not be a cash reserve. I think you will appreciate that a business like ours cannot possibly stand still. We must either progress or go backwards. We all wish, naturally, to progress, and there are only two ways that I know of finding the money for progressing. One of those ways is by the provision of fresh capital — a thing which I think the shareholders, and certainly the board, would deplore. The other is to set aside a certain amount of the profits of the year for maintaining the business and for going ahead. Under the 1904 Compensation Act we lose a certain amount of trade each year, and it is our object always, if we can, to replace it.
There is another way of spending these undivided profits — namely, in developing our existing channels by rebuilding and improving our present public-houses, and increasing the attractions and giving the facilities to which the public are entitled. That is the policy which we are pursuing.
Referring to the reduction in the price of beer, he said: A penny a pint means 24s. a barrel, and the arrangement was that the Government would give a rebate of 20s. per barrel, and the trade were to find the additional 4s. That is, of course, a serious burden, but it was pointed out that increased consumption would assist the trade to recover that 4s.
When we issued our report we had before us the results of May and June, and I am bound to say that they were not at all encouraging. Since then, however, we have had beer-drinking weather, and our trade has certainly crept up in a very satisfactory way. It will average itself over the year, and we shall be able to tell you more about it when we meet twelve months hence. In creating our reserve our object is to endeavour to maintain our existing dividends as they are to-day until such time as circumstances will allow us to ask you to increase them.
Mr. Charles J. Phillips, deputy-chairman, seconded the motion, and it was carried unanimously.
A final dividend of 10 per cent., making 16 per cent. for the year on the deferred ordinary stock, was declared.
Mr. Richard Combe and Major Arthur C. Bonsor were re-elected directors."
"The Brewers' Journal, 1923", pages 473 - 474.
