The Annual General Meetings (1920-68)

wantingcaution !! this is an initial draft ...

I keep these notes on my server so I don't lose them !!




Churn Brand1920 - Objects & Advantages of the Amalgamation - Mr Walter S Corder in the Chair.

Response to the Prospectus. The first Statutory Meeting recorded the gratifying response of the investing public to the prospectus. The combined experience of the directors would secure cost savings from the implementation of best practice throughout the group.

Output & Coordination of Activities. Output from all the constituent works had been maintained and in future the coordination of output and activities from Head Office would be valuable. There was every indication of continuous and increasing demand. The focus on R&D was already bearing fruit and customer orientated science was the future priority. Exports were rapidly increasing and world wide connections will help in the event of any general trade depression.

Liquid Assets. Your Directors have no hesitation in advising that liquid assets are more than ample for the company's requirements.

The Board's Policy. The amalgamation was most definitely not based on exploiting the consumer by stifling competition and raising prices. Although by far the largest company manufacturing our particular products in the country the company was not a monopoly, and competition was a stimulus. Market prices were paid for all raw materials, but activities would be organised to minimise transport costs. Already a similar business in fats, fertilisers, glues & chemicals in a different part of the country was under negotiation for purchase.

Importance of Scientific Research. Before the war British industry was suffering from a lack of imagination and too great a reliance on empirical methods and far too little understanding of the science of our business. Science and eternal vigilance was now to be focused on 1 maximising output, 2 minimising waste, 3 highest quality, 4 lowest costs & 5 most favourable selling prices. At the head of the company were Managing Directors, Mr Cotes and Mr Duncalfe, who were blessed with comparative youth, great energy & push yet tactful & conciliatory and had a modern attitude to science ... upward & onward ...

1921 - Difficult Trading Conditions - Mr Tom Walton in the Chair. Lomas Gelatine Works Ltd at Plymouth was purchased and Mr E R Brown joined the Board.

Conservative Financial Policy. Balance Sheet valuations were prudent at cost or market value which ever were the lower. A considerable investment of £127,925 in War Stock was naively assumed to be readily realisable. There was a credit for £127,025 payable by 'the vendors' for the period from January 1920 when their businesses were taken over.

Profit & Taxation. Inevitably the Inland Revenue were demanding an intolerably complex mix of 'Corporation Tax' dependent on 'Excess Profits Duty' and 'Income Tax' which was dependent on 'Corporation Tax' and 'Excess Profits Duty', so the difficulty of giving an estimate could be appreciated! 

The Industrial Slump. The miner's strike, deflation & taxation took there toll. The costs of the Great War were real and could not be alleviated by striking labour unions, probably the blackest period in history for British trade. There was no ordinary dividend but in building up a large organisation in such circumstances it is the duty of every Director to adopt a conservative policy. Idle factories through lack of coal and fixed overhead cost were more than offset by improved efficiencies & stringent economies. The dissipation of capital and the consequential dislocation of international finance has ruined our prosperity but I am confident that hard work and low prices will stimulate demand. Recovery will follow if bankers can find a way to provided foreign credit.

High Wages & Unemployment. It is futile for workers to expect wages which will result in prices which make goods impossible to sell. Stoppages and unemployment will be inevitable. A spirit of cooperation has prevailed as wages of loyal employees have been reduced.

1922 - Depreciated Exchange Rates & War Debts - Mr Corder relinquished the Chairmanship, Mr Tom Walton took over.

The Year's Loss. £64,000 loss reflected the depression of British industry. It was deeply disappointing that deflation and the time lag between raw material purchases at high prices and product sales at lower prices resulted in a loss. Continually falling prices and losses on stocks were aggravated by the coal strike. Devaluation of belligerent nation exchange rates resulted in diminution of exports. 

The Taxation Burden. Payments were made to discharge 'the vendors' liabilities but negotiations throughout the year have been unable to effect a settlement with the Inland Revenue. An unnecessary, time consuming, complex technicality on the Excess Profits Tax.

Trade Prospects. It would be wrong to expect any general improvement in trade until the exchange rates and credit problems are  stabilised. Cancellation of war debt would help. American tariffs were a setback.

Transport Charges. Reductions in transport charges would help trade and the railway proprietors. Trade revival has been retarded by Imperial & local taxation and every pressure must be brought to bear for economies which alone can bring about a reduction of public expenditure. I might remind you that Corporation Profit Tax is an additional and camouflaged income tax thrown indirectly upon the shoulders of the ordinary shareholder almost without his knowledge.

But when the powers that be have done their part it will take individual effort & determination to restore our country to supremacy.

The Unemployment Dole. There is insufficient inducement to return to work. Public utility wages must not compete with the resuscitation of trade.

Directors Fees Waived. Relation with our work people have been of the happiest.

Hopeful Outlook. The company enjoys diversified products & markets and meets the precise requirements of consumers which is why we have escaped the losses which have hit others. Trade of this country is up against a very big fight.

1923 - Highly Efficient Works - Mr T Walton reported trading conditions continued to be very difficult but last year's loss of £64,000 was turned into a substantial profit of £36,000 as our works were brought up to a very high standard of efficiency.

Balance Sheet Figures. Capital expenditure was less than depreciation and the companies holding in subsidiary companies was yielding a good return.

A very important comment on the financial position again concerned taxation liability. It was a matter of personal regret that our professional advisers had been unable to provide any information on a settlement with the Inland Revenue.

Improved Organisation. Industrial concerns suffered from the abnormal times but there was continued improvement in our factory organisation with production greater than ever. This involved selling farther and farther afield to escape adverse European exchanges. We are not waiting for exchange rates to normalise but working with our customers, our research scientists and our specialised knowledge to discover increasing uses for our products.

Economy & Efficiency. Our MDs have again forgone their fees and taken lower salaries and commissions dependent on results. The efforts have been pleasing and even the least efficient of our factories are now obtaining better process results and geographic position has been exploited to reduce significant rail charges, running at £100,000 per year.

 Exchanges & Foreign Competition. Foreign competition cannot be on a basis of equality so long as European exchange rates are continually declining. Improved quality and productivity was the only answer. The naked truth is that nationally we are poorer than we were, so we must produce more. These remarks are not directed solely at the manual worker, everyone is involved.

Confidence in the Future. Though dividends have been been postponed by the depression the groundwork has been accomplished for the future.

Directors Mr W B B Quibell and Mr Walker are to retire reducing the Board size to twelve.

1924 - Taxation Liability Settled - Trading conditions continued to be difficult and profits are still disappointing at £6,000.

Balance Sheet Figures. Depreciation provision has again exceeded capital expenditure but all our factories are well maintained in a highly efficient condition. Due to taxation liabilities, creditors are considerably greater. Depreciation reserve has increased.

Taxation Position. Tax has hit our company very badly due to the view of the Inland Revenue that we were liable for Excess Profits Tax on profits from the date of incorporation and not entitled to repayment in respect of subsequent losses. Excess Profit Tax was paid on profits from the January take over of operations  to incorporation in May 1920. Had the legal status changed in January no tax would have been paid. To avoid the not inconsiderable distraction of time absorbing litigation in the High Court, we have settled which we feel is in the interests of the company. The travesty remains that in settlement with the Inland Revenue, Excess Profits Tax was paid when the company was losing money.

Expansion of Foreign Markets. The Board adopted a full production policy, output has slightly increased, raw material costs have risen and in general we have realised a little less for our products. The economic conditions have been difficult for our customers also.

But steady expansion of exports has been particularly encouraging. We will obviously continue to reduce costs but it is also probable that German & East European competitors will refuse to accept unfavourable living conditions and French manufacturers will tend to advance when they revert to a policy of paying off their debts by increased taxation. This country must moderate its living conditions and our Continental competitors must improve and eventually the extraordinary disparities will be removed.

New Cattle Food Products. Exports of new products have been well received - 'Churn Brand Sterilized Feeding Bone Flour' &  'Churn Brand Meat Protein'. Research has delivered products which impressed agricultural authorities, our firm intention is to pursue this research which is of tremendous importance.

Directors Fees Waived. Directors interests are yours, they are very large shareholders, and determined for ultimate success.

Directors Mr James Grimditch & Mr Ernest Quibell were re-elected.  Messrs Kidsons, Taylor and Co were re-appointed auditors

1925 - Position Substantially Improved - All outstanding tax liabilities have been agreed and paid. Our trading profit was £42,000.

Preference Payment. In view of the improved position but proceeding with caution, it is proposed that one half years arrears of Preference Dividend will be paid.

Widening Sphere of Activities. Our products are becoming increasingly well known but the Continental manufacturer still has the advantage of lower labour costs, although we have held our own.

Research continues with unabated vigour. Although over centralisation of our business is a danger to healthy rivalry in our factories. We centralise only where we can achieve effective direction and economies of scale. Centralisation v. Decentralisation policy has pros & cons which need careful consideration of waste and/or irritation.

General Conditions. General trading conditions have dominated our business and I cannot conclude we have won through. I feel our nation has not realised that the price to be paid for recovery is sustained intelligent effort. The business man's views are ignored, economists have the ear of the press. The man in the street is led to believe that he just has to wait patiently for others to find a solutions, when the truth is that the remedy rests with him, and with you and with me.

Immediate Outlook. Although we have made progress I am not optimistic in this regard.

Directors Mr E Hindley and Mr J O Neill were re-elected.

1926 - Effects of Trade Depression - The death of Mr Ernest Quibell. Regretfully a £23,000 loss, review the causes and remedies for our own company and the general conditions in the country.

Keen Competition. Trade throughout Europe is sick. Demand for our production was great during the war and for some time afterwards. This boom led to expansion of production facilities and new entrants. Maintained factory output put pressure on raw material supplies and costs rose but demand fell away resulting in low prices. The same applied in other industries. Inefficient factories in uneconomic locations were closed down and raw material arrangements have been concluded for raw material which we hope will hold.

Lower Working Costs. Hardening of raw material costs have been balanced by lower working costs. Unfortunately rail charges and coal costs are very heavy.

Research has continued to improve our products, raise extraction efficiencies and to discover new markets.

Instability of exchange rates and low wage costs for our Continental competitors continue.

Working arrangements with Continental competitors have been debated in an attempt to avoid carriage and freight costs, but we cannot interfere with the right of all to sell where they will.

New Businesses Acquired. An Irish holding has been acquired and B Young & Co Ltd of Bermondsey was purchased. And others as competitors go into receivership. We are naturally chary of increasing our responsibilities and the terms have been advantageous, while increasing our geographical position.

Liquid Position. We continue to be prudent and have avoided bad debts. Our works continue to be maintained in first class condition. However values in 1926 are different from 1920 and assets stand in our Balance Sheet at a figure exceeding today's value. The Directors will not lack the courage to recommend a capital reorganisation.

The Future. We are in the midst of a severe industrial disturbance which is impossible to exaggerate, I cannot be optimistic.

Directors continue to waive their fees and no dividend has yet been paid since 1920 on the ordinary shares.

Directors Mr K G Thomas & Mr G E Shawcross were re-elected.

1927 - An Exceptionally Difficult Year - A £12,000 loss.

The Effect of the Strike. The dislocation of industry shook the country to its foundations, the full effect of the stoppage will never be known. The coal we were able to secure was of very low quality and the quality of our production was difficult to maintain.

The Balance Sheet. New acquisitions are included at a fully worth value.

Liabilities Side Items. Losses in connection with the coal strike have been aggravated by heavy falls in the prices of fats & greases but minimise by a fall in the cost of raw materials. Fertilizer prices were slightly lower' glue a little higher, but remain unsatisfactory.

Factory Rearrangement. The purchase of the Newport Factory in July 1926 and the Bermondsey works helped our geographical position, and the latter brought a valuable hide-glue connection. Bermondsey will be remodelled to improve the efficiency of our London raw materials, but will inevitably throw out of use factory equipment elsewhere.

We have had a fire at one our midland factories, which was fully covered by insurance and production was maintained by reorganising, at slightly increased costs at other factories.

Better Prospects. I am hopeful we have turned the corner. The coal strike hit us hard but our loss was 'only' £12,000, and latterly we have secured monthly profits.

It is possible we have reached a new normality and a capital reduction may now be considered.

Mr William Cotes retires. The Directors Mr E R Brown, Mr E Boyd Quibell, Mr Vincent G S Cotes, Mr B S Adderley were re-elected.

1928 - Substantial Net Profit - The capital reorganisation received the sanction of the court on June 11th, these accounts are on the old basis.

Trading Results. £51,000 profit. Cash position transformed from an overdraft of £30,000 to a credit of £50,000. The investments in our subsidiary companies are well worth the figure in the Balance Sheet, and the growth is almost entirely due to developments at Bermondsey. Our scheme of geographical rearrangement has progressed well.

Anticipation of Even Better Fortune. Trading conditions have been better than we had hoped, but I am impelled to speak of the future with caution, remember our short existence has included a slump, railway strikes, coal strikes and a general strike. We are pleased to resume the payment of Preference Dividends, and we hope before long to make some return to our Ordinary shareholders.

Transport Charges & Rates. We are in a heavy industry and have to be concerned with transport questions. The reorganisation at Bermondsey is progressing well and saving transport costs, and where, by the way, we hope to make the best possible use of equipment from closed factories . We are large ratepayers and have been hit by duties on petrol and solvent spirit, we hope some benefit will come from The Chancellor of the Exchequer's proposals.

The Company's Cattle Foods. Agriculture is still depressed and fertilizer prices have been lower but on the other hand, glue & grease prices have risen. The trade in feeding meat & bone meals has been depressed but good progress has been made with our 'Churn Brand'. The benefits of research ought to be more widely known. Because of our diversity we are able to use our raw materials in a flexible way where they earn most profit.

Competition at home and abroad is energetic but our friendly relationships have been beneficial.

Directors Mr Walter S Corder and Mr Oliver Quibell were re-elected.

1929 - Improved Position - The whole effect of the capital reorganisation is shown in this year's accounts. Full provision has been made for depreciation where building & maintenance has not enhanced value and there remains a profit of £101,000.

The 'Dead' Factories. Geographical rearrangement of factories has progressed and during the year we have disposed on one 'dead' factory. Others are included at conservative valuations.

Growth in Export Trade. Exports are repaying pioneering work over the past nine years. Competitive ventures have entered our markets but we are confident of retaining our share of supplies. Exchanges are steadier but many countries with a lower standard of living have an advantage of low wages which we can only neutralise by quality & efficiency.

Work of the Joint Managing Directors. Results are the outcome of years of unceasing determination on the part of your MDs and their enthusiastic support. Slump, deflation, three coal strikes, two railway strikes; trying times. A brighter outlook helps us to inaugurated a scheme to aid employees in old age or permanent disability.

Mr Walter S Corder and Mr Edward Hindley, a Director since formation, are to retire due to ill health. We hope that they may long be spared to enjoy their retirement. We have already appointed younger men, Messrs B S Adderley, Vincent G S Cotes and E Boyd Quibell.

Without doubt many difficulties lie ahead but we hope good statesmanship in connection with the coal industry and other national problems will result in satisfactory solutions.

Board's Conservative Policy. £20,000 was paid into a general reserve account and 9% was paid to Preference Shareholders and 10% to Ordinary Shareholders. We acknowledge your forbearance during the long dividend less days.

Retiring Directors Mr J E Grimditch and Mr G E Shawcross were re-elected.

1930 - Strong Liquid Position - £81,000 profit.

Balance Sheet Items. Little change during trading conditions by no means free from anxiety.

Profit and Dividend. Our policy is to maintain a strong liquid position ready to take advantage of every favourable opportunity. Profit disposal to preference & ordinary dividends, taxation reserves and a further £20,000 to the general reserve.

Decline in Commodity Values. Deflation continues. Significantly our raw materials are waste by products involving considerable labour in collection they remain on a much higher basis than on the Continent. Research continues to be intensively occupied with improved methods. The London factory should be in full operation by the end of the year.

Group Assurance Scheme. This scheme in now in operation.

Confidence in the Company's Future. Friendly relation ships continue with competitors at home & abroad.

Mr Duncalfe has laid down his duties as MD passing responsibility for purchasing to Mr Adderley, he will remain a consultant. Mr Town takes over as secretary.

I do not see easy times ahead but in Mr Harold Cotes we have solidity to withstand all ordinary shocks.

Directors Mr T Walton and Mr Roger Duncalfe were re-elected.

  1931 - Profits Affected by the Fall in Values - Marketing goods was difficult at a time of serious economic disequilibrium. Profit £15,000.

Difficult Trading Conditions. Fats & oils were realising lower prices than at any time during the last 30 years at least. Throughout our particular industry the fall in product prices exceeded the fall in raw material prices and due to these two circumstances our profits have been disappointing. Dividends were suspended.

Problems in the Fertiliser Business. The sale of a small portion of the company's business, Agricultural Merchanting & Compound Fertiliser at Newark, to Messrs Doughty-Richardson Fertilisers of Lincoln, has been concluded on advantageous terms. This was not form part of our main business. In our own fertiliser business we have made progress in spite of the agricultural depression.

Our animal feeds business receives accolades from breeders and feeders. 10 years ago feedstuffs in this form were little known.

 New Forms of Manufacture. Consideration of our customers has resulted in the development of 'Cascade Glues' in 'bead' of 'drop' form.

Our assurance scheme now covers the live of some 800 of our staff., and 200 staff have pensions.

The American Proposals. I heartily welcome the proposal to help European debtors. There is much room to believe in self help as a creditor's position as regards his debtor is brightened by improvement in the debtor's circumstances. Much must be done to help Germany in her financial difficulties. An impoverished competitor is as disturbing as a prosperous one, financial default affects everyone. It is imperative that determined effort be exerted to bring about a reduction in the heavy burden of Imperial and local taxation. Enterprise would be stimulated and the development of industry assisted.

Tribute to Officials and Staff. Our fortune is dependent on national and international conditions and I do not feel touching on this subject is out of place at a shareholders meeting. But our ultimate success will be brought about by our own efforts.

Directors Mr Oliver Quibell and Mr E Boyd Quibell were re-elected.

1932 - Definite Improvement in Results - £31,000 profit.

The Balance Sheet. Goodwill has reduced by £6,600 following the sale of the Newark feeds business. Our policy is too keep resources liquid during difficult times.

Prices of Fats & Greases. Current prices are at half their pre-war level. A 10% duty on imports has not yet helped because of accumulations of large stocks. America must see the uselessness of expecting payment of a vast indebtedness, which cannot be paid in gold and trade barriers make it impossible to pay in goods. Everyone suffers during the delay.

Obviously there are other causes of the world's problems, the 'cornering' of gold and the inability to devise an alternative monetary system, and 'insulation' from protective barriers. These are two of the greatest hindrances to world recovery. Our government is taking steps to free trade within the Empire and we are working with our trade organisations to put proposals to government which should be of benefit.

The War Loan Conversion. The huge conversion scheme will help economies and our company will convert our holdings. Next must come an attack on national expenditure running at £850,000,000 , pre-war it was £140,000,000. Many of my observations may seem  remote from our immediate fortunes but financial confidence and free trade are necessary conditions for recovery.

 Preference Dividend. Payment will be delayed and future distributions will depend on the circumstances, mindful of our duty to divide profits as freely as is possible.

Directors Mr B S Adderley and Mr E R Brown were re-elected.

1933 - Increased Profits - £45,000 profit.

Success of 'Churn Brand' Products. Russian glue is cheaper than ever and stocks of glue are still far too heavy. 'Churn Brand' protein and mineral concentrates for all farm stocks, continues to make headway. We are now marketing the 'Woof Woof' dog biscuit. Extraordinarily low prices of fats and greases continue, and this together with export restriction and the vagaries of exchange rates have induced us to start the manufacture of soap.

Cooperation with  Manufacturers. 'Cascade Brand' glues are particularly popular. Our research department has developed special physical properties for these glues which may interest other manufacturers. Last year Mr Duncalfe attended the Imperial Economic Conference in Ottawa, and contributed to a presentation of the united views of all manufacturers of glues and gelatines.

World Economic Conference. Protectionism and self-sufficiency may seem a plausible route to prosperity but communications and transport make the world smaller with boundless possibilities for benefit, but I believe have contributed to our present difficulties; the artificial and short sighted regulations and manipulations and by departure from the anchorage to gold. Gold when 'cornered' has little value in securing prosperity for people. The best use of American gold is not for hoarding but for loans to finance trade.

The Outlook. No one knows what the future holds, but time will run before solutions are found.

The retiring directors were re-elected.

1934 - Gratifying Increase in Home Trade - £45,000 profit.

Excess of Liquid Assets.  There was a welcome relief in taxation after this year's budget, but the international outlook is obscure and an early improvement is not looked for. Hoarding gold is sterilised from performance of the function it served so well. All nations try to 'perform the impossible' of at one and the same time selling their produce abroad and yet refusing to buy and enjoy the produce of their neighbours.

Difficult Conditions Abroad. We were big exporters to America and the Far East but this trade has shrunk pitifully, additionally competition from Europe remains very severe. Home trade has shown gratifying increase.

Research continues and as members of an international association we have taken an active part in finding new profitable uses for glues.

The Outlook. The outlook in regard to glues is a little brighter. Our soap department has given us the advantage of utilisation of some of our own production of special fats which have been slow to sell at low prices. Cattle feeds remain extraordinarily good and fertilisers encouraging.

We are well equipped in factories, finance and organisation.

Appointment to the Board. Mr Oliver Quibell and Mr George E Shawcross are to retire and Mr F W Knibb, our General Sales Manager will be appointed the the Board.

1935 - Preference Arrears Cleared - £71,000 profit. We regret the very recent death of Mr Edgar Robert Brown, a Director since 1920.

The Balance Sheet. The accounts I am sure will be pleasing to you.

Increased profit. Our practice is to include in the parent company's profit and loss account the whole of the profit (less losses) of subsidiary companies, even though the actual payment to the parent company must await authorisation by formal resolutions of the board of the subsidiary company.

Causes of Improvement in Profit. Exchange rates, tariffs, quotas and restrictions have not at all helped our export trade. Home trade has tended to improve. Grease production and sales have increased. Glues in various forms were sold in greater quantities. Speciality glues such as 'Cascade' glue  flour for the dry distemper trade made progress. 'Croid' liquid glue is convenient for the actual user, as are 'Cascade' beads and 'Kristal' powders. Fertilisers has been somewhat slow but 'Churn' cattle feed have been in good demand. 'Fleetwing' soap powder sales have been encouraging.

Position Summarised. Production and sales have been increased by lower costs, improving profit even at lower selling prices. We are pleased to have been able to pay our preference dividends. We are alive to the necessity to profitably develop our industry.

Services of the Managing Director, Officials and Staff. I would like to express the company's very warm thanks to the MD and staff.

Directors Mr R Duncalfe and Mr Frank W Knibb were re-elected.

1936 - Ordinary Dividends Resumed - £??,000 profit. Each of our main productions has contributed to this fifth consecutive improvement.

Building Up Reserves. Our company is peculiarly subject to fluctuations and for this reason our reserve for contingencies has been built up. The disposal balance will enable the resumption of ordinary dividends.

Strong Liquid Position Maintained. Liquid assets exceeded liabilities, including provision for the dividend by £232,00.

Larger Volume of Trade. Increased profits have come from bigger volume of trade, manufacturing control and slightly increased prices. We look to glues, fertilisers and feeds rather than greases and tallows for our profits.

Coordination of Effort. Enthusiastic coordination results in accumulation of experience and fundamental knowledge of material and products. We have cordial relations with other glue manufacturers through a European organisation covering seventeen countries. Mr Harold Cotes is President of the organisation.

The Outlook. Our dividend proposal is modest but it is in our best interests that in unsettled conditions we preserve strength and so justify expectation of dividend maintenance until gradual increase.

Director Mr E Boyd Quibell was re-elected.

1937 - Larger Dividend Distribution - £??,000 profit. There has been a continuance of improved trading conditions. Technical research gets earnest attention and its benefits are continuous, expenditure is of course charged against revenue each year.

Capital Expenditure. Capital expenditure has been heavy, keeping our machinery & equipment thoroughly up to date.

Again raw material have cost more and greases and tallows have realised less, but on the other hand glues has contributed more. Cattle feeds have been stronger than fertilisers.

The Balance Sheet. Little has changed, reserves have increased and inevitably taxation is up.

Importance of Overseas Markets. Glues have yielded unattractive prices in recent years but we have not overlooked there importance in the long run. Coal and rail costs continue to escalate. But we are financially strong and look forward to the new year given freedom from world disturbances.

Conversion of Shares into Stock. The Companies Act requires shares to bear distinctive numbers. This does not serve any useful purpose, yet compliance involves considerable labour and expense. In future your existing share certificates will be accepted as the equivalent of stock certificates.

The directors have granted to all employees a week's holiday with pay, this will benefit the company as well as employees.

Director Mr B S Adderley was re-elected.

1938 - Reserves Augmented - £??,000 profit.

Changeableness in Business Conditions.

In the early years following the great war it was customary for Chairmen to assume that in time trading conditions would return to normal. But years have past and there is a growing recognition that the old order of things will not return. The new normality is changeableness, and adaptability is now required to meet each adverse influence and to take advantage of each favourable influence.

Confidence in International Trade Improvement. The huge expenditure on war preparation has contributed to current prosperity, however this money flow is disquieting due in part to its eventual cessation and in part due to the repercussions of overspending. However I believe as Government spending reduces because of the improved world outlook and confidence, international and home trade will revive.

Conservative Financial Policy. We do not expect a sudden return of stability and confidence and we believe it important to again add to reserves. There are grave dangers but the future is not hopeless. Don't look to me for prophecy but we and all nations would benefit from a better understanding.

Dividend Maintained. Although profits are lower the dividend will be maintained at last year's prudent level. Greases and tallows were again un-remunerative as the cost of palm oil, a competitive product, fell by £10 a ton.

The Company's Research Department. Our research department can give great help to all our customers. We are anxious for our research department to provided the fullest assistance on questions of animal feeding under intensive farming conditions.

National Importance of Grassland Fertility. Much of the fertility of our grasslands in the past has been provided from bone, and we have our 'Gryps' brand of steamed bone flour available. Basic slag and lime have been subsidised by the Government which has hurt the sales of alternative phosphate fertilisers.

Director Mr Vincent G S Cotes was re-elected.

1939 - Strong Position - £??,000 profit. Just a little less than last year, and reserves were again augmented. In the face of continued world unrest and especially depressed conditions in the fat and bone industry there are grounds for satisfaction.

Consolidated Balance Sheet. Recent stock exchange fluctuations have been violent. Outside investments stand at £8,750 but what the next change will be no one can tell but our conservative record will serve us in good stead.

Price Position. Prices of grease and tallow have deteriorated still further. It may be of interest to record that the price of tallow is today lower than at any time since the Battle of Waterloo, nearly 125 years ago. It is imperative to reassure our raw material suppliers that price reductions they are suffering are beyond our control. Fortunately our company is not dependent on any one commodity. Our feeding stuffs are favoured and research into nutrition continues. We had a good season for our fertilisers.

Satisfactory Results Despite Difficulties. The dark clouds hamper commerce but it is my opinion that our satisfactory result is due to foresight, courage and the conspicuous ability of our MD.

Director Mr James E Grimditch was re-elected.

1940 - Continued Progress - £113,000 profit.

Trading Conditions. During the first four months we had been giving special attention to export trade, we were ahead, greater production, increased deliveries and satisfactory profit. At the outbreak of war many of our European markets closed at once. Since then our production has supplied national needs.

The Balance Sheet. Foreign investments have been written off. We were fortunate that at the outbreak of war our foreign commitments were relatively small. Investments in Government securities have increased by £63,000 as we have supported loans. Liabilities have increased in the main due to provision for excess profits tax and income tax.

Consolidated Balance Sheet. There has been a growth in the excess of current assets over the whole of our liabilities. The year has been one of rising costs and rising prises and we have benefited, but this cannot continue indefinitely, we must be prepared.

Cattle Feeding Stuffs. I make no apology for repeating our research effort is available for the benefit of farmers and the national effort. It is at the Governments request that we are producing greater quantities of cattle food than ever in our history. Last September head office organisation was moved from London to the country. We pay tribute to our employees serving in H M Forces, an allowance is being paid.

Tribute to Management and Staff. British Industry may yet have a rough journey, but with such a team  our company may face with tranquil confidence what ever the future may hold.

Director Mr T Walton was re-elected.

1941 - 10% Ordinary Dividend - £101,000 profit.

A year of rising costs and declining supplies of raw materials. Price control on bone grease leaves no margin for manufacturers. We cooperate with the authorities in the salvage of bones and raw materials and it is necessary for increased cooperation from the community. It is a source of satisfaction that so much of our production has supplied national needs and we continue to cultivate such of our overseas markets as are still open to us.

1942 - £98,000 profit.

1943 - £97,000 profit.

1944 - £98,000 profit.

1945 - £101,000 profit.

1946 - The Times of London did not report on the annual results of Mr Tom Walton's last year as Chairman?

1947 - Mr Roger Duncalfe's Review - £217,000 profit.

A warm tribute to Mr Tom Walton who retired from the Chairmanship after 25 years.

Mr Walton remained a director and Mr H C D Lock and Mr J Macaskill both full time officials of the company were welcomed to the board.

Employees Gain from Profits. £50,000 was allocated to inaugurate a contributory pension scheme for employees.

Progress was hampered by the wartime concentration scheme, now extended to March 1948. A progressive company must look forward not backwards.

Interests in Canada have been extended through Canadian Organic Developments Ltd to a controlling interest in a Toronto business carried on by Mr Joseph H Harris MP.

B Young and Co and their spa brand gelatine had done well as had 'Croid', the soap companies, 'Murray's of Mark Lane' and 'Calfos'.

Increased mechanisation to reduce costs and improve quality was an objective. The programme totalled some £300,000 had been delayed by the fuel crisis and late deliveries. This would largely absorb available liquid resources and would call for ploughing back profits for some time.

1948 - Capital Build Up Essential to Industry's Progress - £113,000 profit.

Increased efficiency of productive effort is essential for progress. Our post-war plan for increased glue production of improved quality glue will be completed this year. The demand for fats, fertilisers and cattle feeds has absorbed all we can offer. Chinaware manufacturers have called for increased supplies of calcined bones from our Potteries factory.

Progress of Subsidiaries. B Young & Co increased turnover and 'Spa' brand gelatine is proving attractive. Calfos Ltd has experience increased demand in the pharmaceutical and food industries.  Our Turtle Oil Soap continues in high public favour. Croid adhesives has increased its product range. Murray's of Mark Lane has continued to expand. In Toronto, Canadian Organic Developments Ltd is now well established and has acquired a controlling interest in two businesses in Calgary.

Out of every £1 we receive 18s6½d is absorbed in raw materials and costs, 10½d is taken in tax, 3¾d goes to reserves and 3¾d goes in dividends.

Personnel and Profits. I pay tribute to all our employees but refer especially to uncommon men who inspire, Mr Harold Cotes and Mr I H Chayen. If our nation is to survive it must recognise to the full the virtues of men with vision to create, and men with ideas and strength of purpose to convert them into action.

This ability and economy normally results in profit but it appears in some quarters this is looked upon as antisocial. To progress it is essential for substantial profits to be ploughed back into the business to build up capital to finance expanding trade and improve plant and machinery. Under the present remorseless taxation this build up move too slowly for the resurgence that our economy so sorely needs. The 10% tax on retained profits must go.

1949 - Mr Roger Duncalfe's Quiet Confidence in the Future - £106,000 profit.

Production and Sales. We have born in mind government policy and made price reductions where possible. Our Technical Department has contributed notable this year. Our gelatine works maintained their position as a leading supplier to the photographic, pharmaceutical and food industries. New specialised adhesive have been made available. Mineral nutrition of farm livestock continues to expand. 'Super-Magnite' fertilisers have been introduced and are selling well. Our new Croid Factory was opened on April 4th 1949 at Newark. We have strengthened our export drive and turnover would have been much higher were it not for trade and currency restrictions.

Personnel and the Future. On May 55th 1949 Mr I H Chayen was appointed Assistant Managing Director.

The development of our full manufacturing potential depends on freeing trade and currency from restrictions.

1950 - British Glues Profit Increase - Profit before tax increased to £576,000 from last year's level of £266,000. £253,000 net profit.

1951 - Sir Roger Duncalfe's Review of a Record Year - Increased world demand, following the Korean War and rearmament, international conditions moved in our favour.

Personnel. There is a virility, an urge and forward drive in our group, from careful selection and training.

Consolidated Accounts, Dividends and Bonus Issue. £422,000 profit. We propose a £50,000 Ordinary stock bonus issue, a further step to bring the issued capital more closely into line with the capital employed.

Canada and the USA. Trading conditions have been good in North America. We acquired the minority shares and debentures in W Harris & Co Ltd.

Production and Sales. Turnover substantially increased. Plant efficiency absorbed rising costs and enabled us to delay price increases. Glues had a good year. 'Magnite' fertilisers and 'Churn' mineral supplements did well. Calcined bone for the famed bone China exported well. Production of photographic gelatine increased as did specialised gelatines for rayon, match, paper and abrasives. Calfos Division record record sales. Croid experienced increased demand. The Soap Division placed a new range of 'Personality' soaps. Murray Division, although faced with supply shortages, had a good year. We exported to 80 countries and visited 29 of them.

The Future. We are a world business producing and selling commodities essential in both peace and war but the future remains obscure although we are financially sound.

1952 - Taxation Level a Danger to Industry - 'Another successful year' although profit was less than a year ago. Production and prices rose initially but then prices showed a tendency to fall. Raw material prices declined more slowly.

Consolidated Profit and Loss Account. Profit before tax £821,000. Net profit was £348,000 to which our particular attention must be directed, for it must provide not only stockholders reward but also additional working capital required by a growing business.

Appropriations. £100,000 to general reserves. £80,000 replacement reserve. £50,000 pension scheme.

Dividends. 15% on increased ordinary stock after last years bonus issue.

Consolidated Balance Sheet. Sterling value of overseas assts has increased.

Taxation. UK taxation for the year was £473,000. I am greatly concerned at the danger which industry faces with taxation at its present punitive level, under a system which treats as profit the inflationary rise in stock prices and also the the sum by which inadequate wear and tear allowances on fixed assts fail to meet present replacement costs. Is it not futile to exhort industry to attain increased productivity and at the same time by excessive tax to drain away from it the essential finance?

Production and Sale. Turnover increased  by 20%. Exports increased by 40%. Production reached a new record which was handled smoothly by our factories. Our technical department again contributed notably to progress.

The Future. Strongly pressed demands for wage increases must cause concern.

1953 - Sales Decline - Accounting year switch from April 30th to March 31st.

Consolidated Profit & Loss Account. £243,000 for 11 months. £300,000 credited to the appropriations account due to over provision for tax.

Consolidated Balance Sheet. Little change.

Production And Sale. A setback in turnover. Production was cut to prevent overstocking. Oils & fats prices declined. Our new cold rendered tallow commands a premium.

Research and Technical. The Chayen Process enables fats and oils to be extracted continuously in the cold and is being used in several of our works and in Canada. We have applied for a patent.

The Future. There have been some improvements which have continued.

1954 - Improved Results - Mr Tom Walton passed away, he was a staunch and true friend.

Improved Results. Turnover increased, costs were reduced and products upgraded. Raw material supplies were more plentiful.

Consolidated Profit and Loss. Appropriations and Dividends. £ 676,000 profit before tax.

Consolidated Balance Sheet. In addition to normal capital replacement your directors contemplate spending over the next seven years some £500,000 on schemes of mechanisation, fuel saving and further process development. Due to our strong liquid position we anticipates no problems.

General. In spite of some reduction in product prices turnover substantially increased. Deliveries of gelatines and glues and fats increased considerably. The improved quality of our products counteracted to some extent price falls. Cold rendered tallow and new glues have made a marked contribution.

Despite more competition exports increased.

Research and technical have yielded encouraging results. The Chayen Process has been licensed at home and abroad.

Capitalisation Issue. It is opportune to take a further step to bring issued capital into closer relationship with the capital employed by capitalising £220,000 of general reserves. Such issues tend to create an element of uncertainty regarding Preference dividends. The full rate of 2% depends on paying not less than 15% ordinary dividend. This uncertainty should not continue, we therefore proposed that the participating rights of preference shareholders shall be cancelled in return for the capitalisation of the general reserve and its issue to preference shareholders in the form of 2 ordinary shares of 4s each for every £3 of preference stock held. This ensures preference shareholders will receive precisely the same income as now.

The Future. Trading continues to be satisfactory.

1955 - Another Successful Year - Satisfactory trading and improved results.

Consolidated Profit and Loss Account. £860,000 profit before tax.

Appropriations. Additions to reserves. Write gown of loose plant and equipment to a nominal £1.

Dividends. 20% ordinary dividend on the lager capital.

Consolidated Balance Sheet. Issued capital is now £1,365,000. General reserve after capitalisation was £435,000, after further appropriation is now £600,000. Seven year mechanisation plan continues.

Production and Sale. Sales and exports increased in tonnage and value. Raw materials have been more plentiful. Mechanisation has helped hold costs down in spite of higher wages, fuel and freight. These cost and ever growing world competition is a concern.

Research and Technical. Between the first idea, the invention, and commercial success, there is a period which demands intense application which is expensive in time and money. But this is well worth the effort. The Chayen Cold Extraction Process is licensed in the USA and Europe and useful royalties are being received.

Canada and the USA. Our companies have operated profitably.

Personnel. Morale is high. Outstanding leadership. Mr Cotes celebrated 50 years of service to the group.

The Future. We are well equipped to keep abreast of modernisation demands.

1956 - Trading Well Maintained - Mr B S Adderley passed away.

Consolidated Profit and Loss Account. £749,000 profit. Somewhat lower due to continued growth in expenses outside our control.

Dividends increased. Appropriations. £30,000 write down of British Government Securities.

Consolidated Balance Sheet. Little change. Mechanisation continues with little doubt about our ability to finance the investment.

Production and Sale.  Unremitting efforts on exports. Increased costs can no longer be absorbed. We are examining our position most carefully. Royalties continue to contribute.

Personnel. Sir Miles Thomas joined the board during the year.

The Future. Reasonably satisfactory. We must export to live but a home base is essential and depends on government policy.

1957 - Business Continues to Expand - but continued cost increases resulted in narrowing margins.

Consolidated Profit and Loss. £740,000 profit.

Appropriations. Table on page 13 shows the growth of shareholder investment during the past 12 years.

Dividends increased again.

Consolidated Balance Sheet.

Production and Sale. The UK divisional organisation inaugurated in 1949 is shown on page 10.

Glue Division. Great expansion since the war concentrated in four factories (pre war six factories). The range and quality of glue products is now far superior. High test glues are in great demand. The depot system for collection and distribution of raw materials has been reorganised and mechanisation at the works has increased. Product quality has improved from the Cold Extraction Process for greases and tallows for soap, olein and stearine, lubricants and textile dressing. An interesting innovation now commercially significant is the use of stabilised tallow in animal feeds.

For over 30 years we have been concerned with the development of mineral feeding for farm stock and today are leading manufacturers. Production of 'Churn Brand' sterilised bone flour has expanded greatly. BGC organic fertilisers from bone, skin and horn are extensively used. Degelatinised bone is converted in our factory in the Potteries into calcined bone for fine English bone china.

Gelatine Division. New installations have increased capacity at our Bermondsey factory, particularly ossein gelatine was added to our photographic, edible, pharmaceutical and technical gelatines.

Uses for Gelatines and Glues. Our products serve many industries. Jellies, ice cream, meat preparations & extracts and confectionery, wine fining and emulsifying. Photographic, paper, match and abrasive, and the artificial silk industries. Also in tub-sized papers, crown cork and water paints. Gummed paper, packaging, box making and print roller composition.

Croid Division. Specialist in Croid adhesives of animal, vegetable, casein and synthetic origin. 'Croid Aero' carries the BSI Kite Mark. 'Croid Universal' is a general purpose adhesive sold in tubes for cold use. 'Polystick' is a polyvinyl acetate emulsion of great tensile strength. 'Fabrex' is a latex based adhesive, for porous fabrics. 'Insol' is a casein glue in powder form. Croid also has a wide range of solvent glues.

Calfos Division. Calfos has made substantial progress with record sales of edible bone phosphate. This unique material is an essential dietetic factor in maternity and child welfare. It is also a valuable 'free flow' agent.

Soap Division. 'Personality' toilet specialities, especially 'Turtle Soap' are fine products which continue to grow.

Murray Division. Merchants, agents and importers of Mark Lane, specialising in gelatines & glues plus essential oils and other natural products, starches, dextrose, chlorates, casein plastic products and more.

Research & Development. This brief review of our production and selling activities has been dependent upon our ability to economically make and sell superior products. R&D have undertaken a heavy programme of work.

Personnel. Mr Leonard J Williams has joined the board from a back ground in banking and industry generally.

The Future. Indications are for some expansion but lower margins.

1958 - Sales Volume Further Increased - Sir Roger Duncalfe retires from all his business activities on the advice of his doctors. Mr Harold Cotes in the Chair.

Trading Conditions. Cost increases reduced margins.

Consolidated Profit and Loss Account. £743,000 profit.

Manufacture and Sale. Once again we produced and sold more than in the previous year. Special tribute to the sales team, total exports were again a record. North American was profitable. Glue had a good year. Demand for 'Churn' minerals and  feeding bone flour was well maintained. Sales of meat and bone meals were substantially increased. Collecting organisation was improved in the face of rising costs. Gelatine turnover increased and ossein gelatine of the highest quality has contributed. Our new di-calcium phosphate was well received. Whatever the range of gelatine Young's of Bermondsey can meet demand. Croid Division has been very active with substantial increases in polyvinyl acetate adhesive production at Newark. The Soap Division has strengthened and a new pack for 'Personality' turtle oil soap has been well received. Perfumed soap petals have been marketed and this product is now advertised on TV. Murray's of Mark Lane have experienced very keen competition but this division has never failed to make a profit.

Research & Development. The company's leading position in the industry is due mainly to our new processes and products from R&D.

Personnel. Dr R D Ashworth was appointed to the board. Mr Walter Town has retired. He is succeeded as secretary by Mr W E Joy.

Forward Outlook. Highly competitive but reasonably satisfactory.

1959 - A Reasonably Satisfactory Year - the pattern continued throughout the year.

Consolidated Profit and Loss. £631,000 profit. Dividends increased from 20% to 221/2%.

Consolidated Balance Sheet. Little to draw attention to.

Manufacture and Sale. Reduced supply of raw bones but production was a record due to success with other raw materials. Our works have been well maintained and we have steadily implemented a programme of new plant and processes. Greases and tallows experienced good demand, particularly 'Churn' stabilised tallow.

Agriculture. 'Churn' mineral mixtures sold well. Our calcined bone has a ready sale for high grade bone china.

Gelatine Division. Good year. Ossein gelatine doubled. We have acquired a half share in an old established firm Wm Oldroyd & Sons Ltd, a leading manufacturer of gelatine and hide glues.

Croid Division. Continued to specialise in adhesives of animal, vegetable, casein and synthetic origin in an ever expanding market. Polyvinyl acetates advance.

Calfos Division. Further progress with edible bone phosphates.

Soaps Division. Emphasis on product development. 'Personality Tabac' was enthusiastically received.

O Murray of Mark Lane. Retirements and new management lead to confidently hopeful outlook.

Research & Development. Difficult to add to what I have said before. We know our progress will continue to depend on scientific inspiration and application.

Personnel. Thanks.

The Future. Steady progress.

1960 - Period of Reorientation for the Industry - Mr Israel H Chayen appointed MD.

Trading Conditions. A difficult year, world market conditions reduced the price of tallows, greases & protein feeds. Raw material prices rose due to intensive competition. But ossein gelatine from home bones and Wm Oldroyd & Sons Ltd did well.

Consolidated Profit and Loss. Dividends, Consolidated Balance Sheet. £384,000 profit. Dividend maintained. Capital commitments include £400,000 for our factory to produce vegetable protein.

Manufacture and Sale. Exports were well maintained in competitive conditions.

Gelatine Division. B Young & Co Ltd had its most successful year to date.

Agricultural Products. The protein market collapsed due to substantial imports of cheap Peruvian fish meal.

Croid Division. Polyvinyl acetates again did well. There is an expanding market for specialist adhesive in the packaging and allied trade.

Soaps Division. The 'Tabac' range is now supported by extensive advertising.

Calfos Division. Expansion continued.

O Murray of Mark Lane. The new division board has planned an energetic programme.

Impulse Process Protein. In September the company announced its new process for the production of of protein isolates from vegetable materials. A production plant is now under erection in Plymouth, financed jointly with Agricultural Holdings Ltd (of the Gunson Group). A new company is to operate the process.

Research & Development. The search continues. Increased productivity with capital equipment offers great value.

Personnel. Sustained endeavour.

Forward Outlook. A world of change, a reorientation in the use of raw materials. Long term is attractive but short term costly readjustment.

1961 - Further Strengthening of Competitive Position - Sir Roger Duncalfe died, we remember his charm, purpose and integrity. I myself, have decided to retire after 60 years in the industry and over 40 years with your company. Your directors have decided to elect Mr D N Walton to succeed me as Chairman.

Trading Conditions. Production increased in volume and quality, and measures of readjustment overcame cost increases on labour, fuel, transport & packaging and profits improved.

Consolidated Profit and Loss. Dividends. Consolidated Balance Sheet. £458,000 profit. Dividend maintained. An additional gelatine company has been acquired and our Plymouth factory has been erected.

Minority Interest. In 1951 we agreed to Mr Chayen subscribing to a minority interest in a subsidiary company to exploit his various inventions. As agreed we have now bought out Mr Chayen's interest.

Manufacture and Sale. Exports. Good business.

Gelatine Division. B Young had a successful year, with photographic and ossein gelatines doing well. We acquired the business of The British Gelatine Works Ltd at Luton and its associate company C Simeons Ltd. We also have a 50% share in the continuing success of Wm Oldroyd & Sons Ltd. Last year the Oldroyd board acquired all the issued capital of Cleveland Products Co Ltd which specialises in the production of high grade ossein gelatine at Middleborough.

Glue Division. A good recovery. We degreased a record tonnage.

Agricultural Products. 'Churn' brand maintained their well established position. The animal protein market remained depressed due to cheap fish meal imports.

W Harris & Co Ltd, Toronto. The site has been requisition by the municipal authorities, we are negotiating a site price and relocation.

Calfos Division. Edible bone phosphate had a satisfactory year. Production capacity is to expand.

Croid Division. We have concentrated on technical development of polyvinyl acetate adhesives.

Soap Division. Although tonnage was up 'Tabac' range of men's toiletries were not as high as we need them to be. We make fine 'Personality' products and shareholders should always ask for them.

O Murray of Mark Lane. Profits were up after intense merchanting effort.

Impulse Process Protein (International Protein Products Ltd). The first section of the plant has been erected and is in production. The products have been well received and marketed under the 'Lypro' name. The solvent plant for the production of protein isolate should be in operation by September.

R&D. The department has been strengthened.

New Head Office. We moved from Imperial House, 15/19 Kingsway, London WC2 to Berkshire House, 168/173 High Holborn, London WC1 where better accommodation is available. We have been able to close our Welwyn Garden City office.

Personnel. Mr P W Bewley has joined the board. The improvement has not come about fortuitously, it is the result of the determined effort of our staff.

Trading Outlook. We face the future with confidence. Steady progress over the years ahead.

1962 - Increased Importance of Gelatine Business - Mr D N Walton in the Chair. Profit maintained in a difficult year which started well but deteriorated. Tallow prices fell. Tallow is extracted as a preliminary to our bone glue process and materially affected our profits. Throughout the year glue and gelatine prices were depressed by strong competition at home and abroad. Dumping of glue was claimed and anti dumping duties called for. Furthermore the 1961 budget imposed additional taxes on fuel oil and our share of the State Graduated Pension Scheme. Nevertheless profits were £462,000.

Manufacture and Sale. Pre-war we made glue at six main factories. By 1957 this had been reduced to four and has now been reduced to three, producing a greater tonnage. These three factories are supplied with bone degreased at four smaller factories which receive their raw materials, principally by road from a network of collecting depots all over the country.

The relative importance of our gelatine business has continued to increase. Five years ago we added ossein gelatine from bones to our product to our range. Ossein has different properties to hide gelatine which we have produced for many years and we were encouraged to start ossein production because we had evolved techniques enabling us to use particular parts of our own degreased UK bones instead of imported ones. In addition to expansion at Bermondsey we acquired in 1959 Wm Oldroyd & Sons Ltd of Widnes. In 1960 we purchased the whole of the share capital of The British Gelatine Works Ltd of Luton. In 1961 Wm Oldroyd acquired Cleveland Products Ltd of Middlesbrough and last year both Oldroyds and Cleveland became wholly owned. Our gelatine business thus has well sited factories at Bermondsey, Luton, Widnes and Middlesbrough and they receive their raw materials from our own UK collecting arrangements. We need to extend to the new acquisitions the policy and processes in operation at Bermondsey and Luton.

Arising from these glue and gelatine operations we produced agricultural feeds and fertilisers and mineral supplements under the 'Churn' brand.

Additionally Calfos, Croid, Murray and Soaps Divisions had a satisfactory year.

Impulse Protein. In April 1962 our new Plymouth Factory was opened. We had confronted the inevitable difficulties of new product introduction and technical points were thrown up making development longer than expected. However we are now producing and selling 'Lypro', 2 third protein 1 third oil, which is incorporated into sausages, meat products, ice cream, soups, sauces, bread and bakery products, improving texture, flavour and palatability. 'Lypro' can also be formulated as a high protein milk type drink. The complimentary solvent plant for the production of protein isolate, 96% protein has not yet been commissioned.

Finance. The company has not raised cash since formation in 1920. Modernisation and expansion has been financed internally. To repay bank borrowings and finance working capital and capital expenditure the directors are now actively considering raising more long term capital.

Abroad. In general we did export business in a hundred or more countries and are considering the impact should we join the European Common Market.

R&D. We now have additional facilities at Luton.

Personnel. Thanks.

Trading Outlook. Highly competitive. But a better balance between glue and gelatine indicates steady progress.

The Times started reporting the accounting figures in the Consolidated Profit & Loss Account and the Consolidated Balance Sheet as supplementary notes to the main report in a separate box.

1963- Mr D N Walton on the Importance of R & D - Profits appreciably better and a small increase in the ordinary dividend.

Manufacture & Sale. Glue sales have been difficult to maintain as world industrial activity has reduced. Gelatines has expanded substantially with the Cleveland acquisition. Research has giving this division a series of improved products which have been well received. Other divisions have had a satisfactory year.

Impulse Protein. The 'Lypro' process is operating efficiently and progress with marketing has been steady but slow, with the plant still working below economic capacity resulting in a first year loss. The solvent plant is currently being commissioned. Our total investment at Plymouth has been £500,000. A licence has been granted for the process to Messrs Milouot, Haifa, Israel.

Finance. As I said last year the directors were considering raising further long term capital and a £750,000 debenture issue at 6 3/4% was concluded.

Abroad. Our North American companies operated profitably.

Research and Development. The future of our business depends on our R&D filling the changing requirements of our customers. The work is organised into four separate groups, Glue, Gelatine, Protein and Croid Adhesives. It covers fundamental chemical, biochemical and nutritional studies, raw material evaluation and consumer research. Each group has its own pilot plant facilities and the work closely linked with the factory laboratories. Our aim is to lead the world.

Personnel. Our staff have worked well during a winter of unprecedented severity.

Trading Outlook. We hope improvement will be maintained.

1964 - Continuing Search for New & Improved Products - The year turned out well, profits were uo to £824,000. Ordinary dividend rises to 26%.

Gelatine & Glue Divisions. Continued improvement. Wage & salary costs increased but fuel & packaging dropped. Raw materials were tailored to production processes and more of our own cold degreased bone were used. Glue Division sold to B Cannon & Co our packeted glue size business and we acquired their glue & gelatine business thus exploiting specialisations. A cold degreasing plant started up at Dodewaard in Holland, operated by our wholly owned subsidiary NV Dodewero.

Other Divisions. Calfos, Croid Murray and Soap Divisions. All contributed. 'Personality' and 'Tabac' goodwill has been sold to Allcock Products Ltd but we will continue to manufacture the products on contract. Ashby makes a number of well known soaps under contracts of this nature.

Impulse Protein. Progress continues but the plant at Plymouth is still below economic capacity. Increasing interest in the product is being shown by the meat, bakery and confectionery trades. Protein isolate plant was commissioned towards the end of the year.

Abroad. USA listed glue & gelatine as products subjected to additional taxes and Germany retaliated with imported US chicken taxes.

R&D. Continuing search for new and improved products. Cross-fertilisation of skills.

Capitalisation Issue. To bring issued capital into line with capital employed we intend to ask your approval for a capital issue of one for every two of ordinary stack held.

Personnel. Mr Edmund Belton joined the board.

Trading Outlook. A beef shortage has recently led to reduced raw materials but we are confident.

1965 - Substantial Advances in Development of New Improved Adhesives - A satisfactory year's trading, profits slightly down at £810,000. Ordinary Dividend at 19% was up from 17  1/4%, after allowing for the capitalisation issue.

Our raw materials are obtained from many different sources but we need specific types of animal by products of the right quality for particular factories. We have tended to reduce imported materials helping the county's balance of payments. We developed a new process for UK raw materials, cold rendering, which made possible degreasing of bones for gelatine production. However for a variety of reasons UK raw materials have reduced in quantity resulting in higher prices and shortages. This cycle is slowly reversing.

Another preoccupation was rising costs, wages, taxes on fuel, transport and national insurance contributions. But against all this we were helped by higher prices.

Gelatine & Glue Divisions. The factory at Dodewaard was started up early in the year. Our people have made a first class job of this project and degreased bones have been most welcome for our UK factories. Negotiations have just concluded for a plant in Austria with local finance. Last year we bought 50% of B Cannon & Co with Booth & Co and we both expect to develop this business under existing management.

Other Divisions. Soap continues to expand. Calfos, Croid, merchanting (Murray and Pintus) have all contributed.

Impulse protein. Sales of 'Lypro' continued to expand steadily, but we still have some way to go. Our first pilot plant to operate under licence started up in Israel last October.

North America. Canadian Organisation Developments and B Young & Co of America continued to operate profitably. In 1961 W Harris of Toronto had been requisitioned by the municipality for a new highway. The amount awarded to us has not yet been determined. We have liquidated certain North American subsidiaries including CCD Processes Ltd, the company which held our non UK patents.  We feel royalty income is growing in Europe and is best handled from the UK.

R&D. New improved adhesive development has been rapid, due to increasing demands and complexity of the packaging industry. The heavy cost of effluent disposal is making improved methods necessary, considerable effort has been put into the solutions but more needs to be done.

Personnel. Thanks.

Current Year. Satisfactory trading to date.

1966 - Steps to Meet Increased Costs and Shortages of Raw Materials - Trading conditions took a turn for the worst, due to increased costs and shortages of raw materials. Profits were substantially down to £575,000, nevertheless we recommend a dividend the same as last year.

Gelatine and Glue Divisions. Continued shortage of bones led to higher costs. There were exceptional rises in the cost of imported gelatine bones and sharp increased in manufacturing costs. As is our usual practice economies and improved techniques absorbed some of these costs. Demand for our products remained good.

Raw Materials. The main factor in the economics of our operations is the cost and availability of raw materials. We have continued to use CCD degreasing to reduce our dependence on imported bones and enable us to use local bones which were previously not considered suitable. Following the introduction of new plant in Holland, another plant in Austria is due to start up later in the year. This expansion brings with it the necessity to  reset the balance of our trading activities. We will reorganise the operational structure and have brought together all our UK manufacturing and trading activities into a new subsidiary company, BGC (Marketing) Ltd.

Other Divisions. Our plant in our Ashby factory has been renewed to enable expansion of well known soaps under contract. Croid continue to manufacture adhesives from vinyl acetate, animal glue and casein. Our IPP division has pioneered the manufacture of vegetable protein. 'Lypro' has continued slowly but we are still not profitable. A production plant is under construction in Israel.

North America. Continued sales of our exports earn valuable dollars. Compensation has at last been agreed for our factory site in Canada.

R&D. We are directing special efforts towards consumer research in our main markets which are changing rapidly particularly packaging, gummed tape and man made fibres. Important developments are also seen in photographic and pharmaceutical markets.

Personnel. Selective Employment Tax is payable from September before any refunds are agreed.

Current Year. Maintenance of our current dividends would cost £401,000 instead of £235,000 last year.

1967 - Turnover Maintained Profit Affected by Adverse Conditions - Disappointing profit of £420,000 but dividend maintained as this is the last year for Income Tax relief. Turnover was maintained and more UK bone was processed. Why then have profits decreased? First, dramatic fall in the price of tallow. Second, reduced glue demand. Finally costs increased, mainly wages, fuel and power. As a result we have concentrated glue production. Newcastle-upon-Tyne closed. Newark and Appley Bridge are being reorganised to cope. Lower selling prices cut into the profitability in Holland and Austria.

Gelatine interests have continued to develop. Ashby production has increased. Croid continued with its useful contribution.

Our IPP Division remains below the level needed for profit. The future of this plant is under review.

Exports. Conditions do not become any easier particularly due to the trend to local production. But a high level was maintained and now amounts to one fifth of our turnover.

Personnel. Work becomes more difficult and complex each year.

Current Year. We hope for substantial improvement, but ...

1968- Factory Reorganisation followed by a Good Finish to the Second Half of the Year - Profit £453,000 and dividends down to 10%.

Activities of the Group. Turnover and export sales were well maintained. Tallow price remains depressed. Foot and mouth disease didn't help raw material supply. Holland and Austria have been valuable suppliers. But costs in Holland continued to rise and Austria was not yet profitable.

The re-equipment of the gelatine factories increased profitability.

Our Plymouth factory has been under review. Sales failed to meet breakeven point and in January 1968 we decided to  discontinue production after a loss last year of £60,000.

Soap, Croid and merchanting all made contributions to our profits and North American operations increased sales.

Our overall financial position is strong, the devaluation of Sterling has increased the value of our overseas investments by some £95,000.

Prospects. We have lost export rebates and tax refunds. Raw materials are still short and costs high. Reorganisation should help.

In Conclusion. Thanks.


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