FROZEN PRODUCTS, LTD.

Evening Post, Volume CXXII, Issue 36, 11 August 1936, Page 12

FROZEN PRODUCTS, LTD.

SELLING PRICES TO RISE

The 12th annual general meeting of shareholders of Frozen Products, Limited, was held yesterday. There was a large attendance of shareholders. In presenting the report of ttte directors of the annual accounts and balance-sheet for the year, Mr. Will Appleton, chairman of directors, gave a general survey of the company's operations during the last twelve months. Considering the adverse weather conditions encountered, it could be said that the turnover had been satisfactory. After providing £3392 14s 6d for depreciation, £218 7s 5d for bad debts, £203 12s 5d towards income tax reserve, and writing olf the balance of preliminary expenses in the balance-sheet amounting to £100, there remained a net profit for the year of £1477 18s lOd which, together with the carry forward from last year, made a net total in the appropriation account of £1592 15s sd. The directors, therefore, had pleasure in proposing that a dividend at the rate of 2 per cent, per annum be paid on the subscribed capital. This would mean the distribution to shareholders of approximately £1200.

In the course of his address Mr. I Appleton drew attention to the probable effects of the recent industrial legislation on the future prospects of the concern. With a view to meeting the new conditions it had been necessary for the company to purchase two additional motor-vans complete with bodies, additional machinery, additional plant, cans, and other incidenjtals, making an additional capital expenditure of over £3000. In addition Ito this extra capital outlay, remarked the speaker, the revenue account in future would be affected to this extent: i— Approximate increase in wage costs, 1 £1300; increased costs for milk and cream, and other supplies, £280; loss in revenue on cool store room which I will now have to be used for ice Scream, £132 10s 7d; interest on extra capital involved at 5 per cent., £150; depreciation on new machinery, £300. Total, £2162 10s 7d. "On these figures," said Mr. Appleton, "it,is apparent that the company will have no alternative other than to substantially increase selling prices. While it was difficult to predict just how the company would fare during the coming twelve months, the directors hoped, that with the increased spending power of the community, I and given a reasonable run in respect to weather, sales would benefit, and on this point he remarked that it was pleasing to record that during the last three months—the winter period— sales had exceeded those of last year by 40' per cent. . "If, of course," said Mr. Appleton, "this figure can be -maintained, the position may not be quite as bad as it looks at the present time." Mr. Appleton again drew attention to the heavy burden of sales tax in the operations of the company. For the last financial year no less than £734 9s 3d had been paid out, and this represented over 1 per cent, on the capital invested by shareholders. The motion, for the adoption of the report and balance-sheet was seconded by Mr. R. H. Ellis, and carried. Several shareholders spoke to the motion, and the directors' action in recommending a dividend of 2 per cent, was confirmed. The retiring director, Mr. E. K. Kirkcaldie, was reelected unopposed, and Messrs. Watkins, Hull, Wheeler, and Johnson, retiring auditors, were also re-elected. A special tribute was paid to the work, of Mr.. Fisher, the manager, and to his staff.