Page 6 Advertisements Column 3

Press, Volume LXXIV, Issue 22418, 3 June 1938, Page 6

REPORT OF THE TWELFTH ANNUAL GENERAL MEETING MORRIS MOTORS, LTD. GROSS PROFIT, £2,167,616-14-11 THE Twelfth Annual General Meeting of Morris Motors , Limited was held at Cowley , Oxford , at 10 a.m., on Friday , the 6th May 1938. Viscount Nuffield , the Chairman of the Company , presided. The Secretary read the notice convening the Meeting , and the Auditors’ Report to the Members. The Chairman said :— “The Report and Accounts for the year ended 31st December, 1937, have been in your hands for some days, and may I therefore presume that it is your desire that they be. taken as read? “The figures in the Accounts have been set out in a manner which I think will be readily understood, and I do not think it will be necessary for me to comment upon them at any length. Trading Profits “The results of the' combined group are clearly shown, and your Directors think there can be no doubt that the position of the Morris Motors Group at the present time is stronger than it has ever been before. “The Net profit on Trading and Interest received for the year ended 31st December 1937 totalled £1,821,662 3s. 4d. after making full provision for depreciation of Assets, and all contingencies. In accordance with the Company’s usual practice, Investments in Government Securities and Corporation Stocks have been valued at the Market prices ruling at 31st December, 1937. This has resulted in a depreciation of £100,648, which has been provided for out of Reserves for Contingencies. These Reserves, including those of the subsidiary Companies, now stand at £426,468, a figure which the Directdrs consider sufficient to cover all contingencies. Current Assets “The liquid position remains excellent, as will be seen%m the Assets side of the Consolidated Statement of Assets and Liabilities, being represented by the Market Values at 31st December 1937 of Investments in British Government and British Dominion Stocks, English Corporation Stocks, together with advances secured by First Mortgages on London, Freehold and Leasehold properties, the Company’s holding in 4£ per cent. Debentures in the Pressed Steel Co. Ltd., and Cash; together totalling £5,248,408. “I will now deal with the Directors’ proposals for the distribution of profits. It will be seen from page 10 of the Report and Accounts that the balance of profit available after deducting Income Tax and National Defence Contribution, and dividend on Preference Stock, and bringing in the carry forward from last year, amounts to £1,339,640 11s. 2d. “This sum the Directors propose should be dealt with by the payment of a dividend of 45 per cent, on the Ordinary Stock, less Tax at ss. 6d. in the pound, which amounts to £864,562 10s. Od.; by creating a Dividend Equalisation Reserve Account and transferring thereto the sum of £200,000, and by carrying forward to next year the sum of £275,078 Is. 2d. “You will see that we have this year created a Dividend Equalisation Reserve Account, as the Board considered it prudent to make some provision by which the earning capacity of the money invested in the Company’s Ordinary Stock could be supported by stabilisation. Sales “I have pleasure in informing you that the Company’s products continue to be in vigorous demand despite the fall in car registrations in this country. Last year added trading burdens were created by all-round increases in prices of Material and Labour Awards, and although some small increases were made in List prices in July last it was thought a wise policy not to pass the whole of this burden on to the buying public, but rather to improve our products generally, by incorporating the overhead valve engine and many other attractive features. “I feel sure it will be of interest to you to learn that up to date we have actually delivered well over 200,000 of our deservedly popular Eight h.p. Model. “It gives me great pleasure to pay tribute to our Distributor and Dealer Organisations for their contributions to a very satisfactory year’s Trading. Overseas Trade “It is very pleasing to me to report continued progress in the Export Markets by our Subsidiary Company, Morris Industries Exports Ltd. Having recently returned from another visit to Australia and New Zealand, I take this opportunity of expressing my sincere appreciation of the courtesy and hospitality again accorded to me. I would like the many to whom I am indebted in this respect to know how sincerely grateful I am to them for the renewed warmth of their welcome. It is particularly gratifying to me to record that the most noticeable increases are in our Dominion Markets, and I look particularly in that direction to a further expansion of our Export business. “The marketing of British cars abroad becomes an increasingly difficult problem, owing to subsidised foreign competition, the restriction of imports by quota, and the difficulties in exporting sterling to this country from foreign countries. The export trade of this country is vitally essential to our National prosperity, and I am pleased to inform you that for the first three months of the present year the Company’s Export business shows an increase over the corresponding period last year, which I hope is a clear indication that we may look forward to another successful year in the export markets of the world. Employees’ Share in the Company’s Prosperity “I do feel that the Stockholders will be glad to learn of the many benefits derived and greatly appreciated by the Company’s employees.. Holidays with Pay There is a charge for this in the Accounts under review of over £IOO,OOO payable to the workers in the Organisation. Morris Employment Benefit Scheme “Payments have been made to Dependents of deceased inembers during the year of over £7,000. Staff Pension Fund “The Company’s contribution to this Scheme for the year amounted to over £34,000. Employees* Provident and Savings Clubs “The Company’s contribution for the year for the purposes of relief during sickness and the encouragement of thrift amounted to £IO,OOO. “It will thus be seen that the total contributions to Schemes for the general benefit of the Company ’s employees exceed £150,000. “I think that it is desirable at this juncture to draw attention to the reduction in the Company’s liability under the heading of the Employees’ Provident and Savings Clubs as shown in the Consolidated Statement of Assets and Liabilities.. The bulk of the moneys previously held by the Company has been paid over to the Trustees of the Clubs for investment, as the Board considered it prudent to separate as far as possible the contributions and Members’ savings from the moneys of the Company. “Whilst on the subject of benefits granted to the Company’s employees I may perhaps remind you that your Vice-Chairman mentioned at last year’s Annual Meeting that at my own expense I had founded a Trust under which the workpeople would receive each year the dividends declared on One Million Ordinary Stock units of the Company. It may interest the Stockholders to know that under this Scheme £112,500 was paid last year, which gave an average return per worker of £7 4s. Od, General “Having now concluded my observations on the Accounts, may I make a brief reference to current National affairs? “As the Budget Speech has not yet had time to fade from our memories, I imagine that you may expect me to comment Upon, and perhaps criticise, the added burden of taxation that has been laid upon Industry and those who are dependent upon it. Nothing could be further from my mind. In normal times, I might have felt constrained to observe upon the feet that our own Trade would appear to be loaded with ihore than its 'share. But, in these most abnormal times, when everyone must realise the paramount importance of making our defences secure, it should surely be the primary urge of all of us to stifle our grumbles, and to continue to discharge oUr obligations to the State in a manner which will increase the reputation for good citizenship of which we are so justly proud,, and which has so deservedly gained for us the unstinted admiration of the whole world. “Doubtless, I shall also be expected to offer some comments on the Trade outlook in general. The times through which we have been passing during the last few months have been so complex and difficult, that to attempt anything in the nature of a definite forecast would be certainly unwise and possibly misleading. My own view, however, which I have so often expressed recently, is that those engaged or interested in the Industries of this country have no cause for uneasiness, and panic or alarm should be out of the question. My advice to them is to ignore altogether the dismal forecasts of a slump in trade which have been so widespread and which, unfortunately, continue to be made and which engender a spirit of depression which in my opinion is entirely unjustified. “In this connection, I would like to make a special appeal to the Press, and to implore them to ensure that their immense influence in swaying public opinion be..not There have been occasions recently on which they have not only appeared to lose opportunities of stimulating optimism but, on the other hand, have adopted an attitude calculated to give rise to gloom. “Far from fearing a slump, I consider that our National prosperity is readily capable of being increased, and it may be expected with every certainty that the Motor Trade will enjoy its full share of an expansion to which I look forward with confidence. .3, “Once again I ani desirous of expressing the Board’s appreciation of the loyal and enthusiastic co operation of all those charged with.the administration of the Company’s affairs, and by the Staffs and employees of the whole Organisation. “With these observations I have much pleasure in moving the following resolutions : : —- 1. That the Balance Sheet and Accounts for the year ended the 31st December 1937 be approved and adopted. 2. That a dividend of 45% less Tax at ss. fidin the £ be paid on the 21st May 1938 on the Ordinary Stock of the Company for the year ended the 31st December 1937 to the holders of such stock appearing in the Register of Members on the 2nd day of May 1938. 3. That an account to be called the Dividend Equalisation Reserve Account be created and the sum of £200,000 transferred thereto from Revenue Account. 4. That the balance of £275,078 Is. 2d. remaining on Revenue Account be carried forward, . “I will now ask Mr. Oliver Boden the ViceChairman of the Company to second the resolution.” - Mr. Oliver Boden the Vice-Chairman seconded the resolution which was carried unanimously. ... The following were duly re-elected to the Board of Directors:— Mr. A. E. KEEN Mr. C. KIMBER Mr. H. LANDSTAD Mr. T. C. SKINNER Mr. S. G. K. SMALLBONB Mr. W. M. W. THOMAS Mr. H. W. YOUNG Messrs. Thornton and Thornton of Oxford and London were re-elected Auditors for the ensuing year.

The rainfall in Rakaia for May was the lowest for many years. Rain fell on four days, making a total of 53 points, compared with 2.61 inches for the corresponding month last year, and : 6.07 inches for the previous month this year.