While I am dealing with these points that have been raised, I should like to clear up a misunderstanding regarding certain figures given in the scheme circulated. If you will refer to page two you will see that the profits of the holding company and its subsidiaries for the year 1936, be-Óore allowing for income tax, are estimated at £1,080,000. When the accounts of Cable "and Wireless (Holding) Limited and Cable and Wireless Limited were issued on April 29, some of the newspapers unfortunately compared this figure with the net revenue of the holding company alone, namely £942,737, and created the impression that the figure in the circular was over-estimated This you will clearly understand was not the case. The figure given was accurate, and the confusion arose through a wrong comparison The circular distinctly stated the figure as the gross profit of the holding company and its subsidiaries, and it was quoted to give emphasis to the total profit of the whole group as compared With the dividend requirements of the holding company.
One or two stockholders have inquired why there is no reference to the new funded stock in the resolutions being submitted to-day for altering the Articles of Association.
The reason is that holders of that stock, as such, are not members of the company. "The rights attaching to the funded stock are defined in the deed poll constituting that stock which, as mentioned in the circular, is available for inspection at the company's offices.
I confidently believe that you will unanimously support your directors in this matter, and that, as a result, the company will enter upon a new phase in its existence, a phase which it is hoped will be marked by a definite improvement in its fortunes.
Once the scheme is approved and the company is in a position to pay a dividend on all classes of its, stock, it is the intention of the directors that interim half-yearly distributions On the Preference stock will be resumed, The report was adopted, the Preference dividend. was confirmed, and at a subsequent extraordinary general meeting and class meetings the reconstruction scheme was approved by overwhelming majorities.
Text read from the printed page and cleaned; old type leaves the occasional error.