COMMERCIAL

Evening Post, Volume CXXXV, Issue 18, 22 January 1943, Page 3

COMMERCIAL

GEAR MEAT CO.

BURDEN OF TAXATION

The annual meeting of shareholders of the Gear Meat Company, Ltd., was held yesterday. The chairman of directors (Mr. Stronach Paterson) presided. The chairman, in reviewing the company s position, said that the gross profit for the year ended November 30, 1942, before provision for taxation, was £141,299, but out of that the company had to provide £8117 for additional taxes paid during the year in respect of the previous - year's Income and £87,000 for taxes In respect of the year ended November 30, 1942, leaving a gross profit of £46,182, or £10,423 less than for the preceding year. I "This will give you some idea of the heavy burden of taxation that we have to meet; and it will not surprise you, under these circumstances, that the net profit for the year is only £21,212, as against £27,724 for the preceding year," said Mr. Paterson. "The carry forward ln f tho profit and loss appropriation'account at November 30, 1941, was £13,762. Adding the profit of tho year ended November 30, 1942, the total amount available for distribution is £34,974. Out of this sum in June last an interim dividend; of 6d per share was paid, whereas in the previous year an interim dividend of only 3d per share was paid; You were advised when this interim dividend was paid in June last that the .then financial position enabled the directors to ■pay shareholders a larger proportion of the proQts than usual, but that this payment did not indicate that the directors anticipated any better final result of the company's operations than the company enjoyed in•' the preceding year. Your board recommends the payment of a dividend of 9d and a bonus of 3d per share, less the Interim dividend of 6d paid In June. This will absorb £11,500, and leave to.be carried forward into next year's accounts £11,974, as against the carry • forward from the 1941 year of £13.762." ' ' " i The retiring directors, Messrs.: Paterson and ,E. H. Anderson, were re-elected, and the audlitors, Messrs. E. R. Dymock: and. A. L. McLean, were also re-elected.