London General Omnibus Co.'s Accounts and Balance Sheet.
Page 7
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Approximately £225,000 of Gross Profit Earned.
The fitry-first annual general meeting of shareholders in the London C:eneral Omnibus Co., Ltd., will be
held, at SelisburyHouse, Finsbury Circus, EC., on Wednesday next, the
7th inst., at 12 o'clock noon. The re port and apeounte fur the 12 months ended the 30th September last are be lure us: we pass over the cireum stances which again deprive vendors of the absorbed Va»guard Nlotorbus Co.'s undertakiug from attendance thereat —in spite of the fact that their property lins for so long been under the control of the L.G.O.C. directors. It is, as ee pointed out a year ago, an anomaly upon which one might write at length.
Weare inclined, subject to certain re,ervations. to join with the Berard in Their evident sen-satisfaction that.
" a gratifying improvement has been effected in the position of the eom
patty.That improvement, so far as reduced working costs go, was already overdue. It is none the less welcome, although we are of opinion that. holders of ordinary stock have been both prematurely and unduly cheered by recentstock-exchange movements. For reason, which will become appareat. we seriously question the policy of the directors in regard to depredation, and this omissien on their part intist be remedied during the next few years. If that moet-necessary eourse be followed, there can he no dividends for the holders of ordinary stock. in fare., the more we look into the no in t, the more we discern the ()mashie1 for that reemistruction of the eapital which is, we understand, held to Ire unnecessary. Whilst accepting certain assurances whieh have been given to es abont official intentions on this point, we do not depart from our view that a writing-down is eminently desirable. The average capital ca I re of Iiiis. company's motorbuses eeniparee most unfavourably with that ef nr her London 1011191101 Cs. Ti e. report, as was the rase a year ego, is detivient in respect of tiiiitiv (!tgailf, whirl were previously given by the directors. They are, probably. held over Ill order to furnish matter for the Chairman's speeeli next week. We refer. more particularly, to the followine: the average number of omnibuses twining; the average takings per omnibus per day ; the total number el passengers earried ; the total number if miles VIM the total number of horses owned—now, we might put it, left on the hands of the company for realization at what they will fetch. There is still the actual hopeless " jemlfle of horse with motor, and we arc glad to know that this process el de-liberate wrapnine-rm of facts will
not obtain fir 11101e than another 12 months. We do not blame the directors for their adherenee to the timehonoured policy of giving theleastpossible information in analytical form. It is inexpedient, from the shareholders' point of view, to disclose TOO mmli fOl' I he information of rivals and possible new competitors,.
We pruceed, Hoe to give the :moreimportant figures for the 12 months ended the 311th September last : These in parentlle:•PS, ere deduced limn the 1908-1909 ;111.(11101.5, NV h ieh were in respect of 15 months (1st July, 1908, to 3(1t1 u September, 1909), ler a deduetion of one-lath. This adjust Merit mm tet be regarded i,s an approximation, hilt it serves to help comparisons. The revenue acrserrit shows a total of i77 It 1 .)410.88(i). 'flue separate items are: traffic and general-hite receipts. etta, 11,67.5,924 (11,859,728); sales of iminure, £1,142 (.11,285); advertisirer. 1-10.111 it49.8731. On the expenditure shle, we find: administratien, .459.2130 ( 019,5621; traffic department, £696.784 (C825,7091; maintenance, £1436,000 (t:954.651). Drivers' aird condiretors' wages are down, on the twelve-mouths' basis, by £80.559, road expenses by -1:4,724, and yard expenses I:including horsekeepers' wages) by £43,611. There are " lumped together,meter a single item Iii the maintenance no:num., the following: "1011ing steek, tires, harness, yard steels. and 11 eS. on realization of horses and horse umnibuses.We do tint know how the direetors reconcile this aggregation with the promise frem the elude at the geueral meeting of 1901i, of aide!' they shoeld be reminded. It hinders a proper appreciation of the magnificent eremoinies in the engineering deportmetit. ehich savings have unquestiunally been the .salvatiou of the undertaking. Why should tliese not be un knowledged:. It was disclosed, for the preceding 15 months. that the sales it horses end herse omnibuses; inyelved ti oss of .170,299, but the Mrecturs eppnrently are Toe nervous to admit how much mere it has heel' for the 12 months; under review, So they submerged the figure to the muleubted disadvantage of the media-nit-al side.
One is praetirally left, therefore. to guesss the reductions ill nminteurince for the motorbuses: the " jumble figures are 4:040,734 (which we reckon TO include at least ,e100,000 for losses on realization if horses and horse omnibuses), and 1614,065 (previuus 12 monthsj
say-, 175,000 down. The balance un
the right side is :1125,133 (£60,964). That is encouraging, so far as it goes, and in close accord with our own ex pectations, provided we now correctly gauge the loss on realizeel horse-stock
10 placing it at 4.1.1.00,000, which in effect represents a like increase in the real balance from the revenue accou»t, and brings the excess of income over expeediture (current) to .1223,000.
The following vomparative figures t.tre to be noted in the last two balance sheets, those in parentheses referring to the position at the 30th September, 1909: -Liabilities: ordinary stock, £1,1.50,089 (1:1,151,849); preference shares, 1332,000 (1332,001Th debenture issues. 1654,0.50 (654,050); SIDIdry creditors, 194,407 (£127,232): leans WI serarrity, nil lat.195,175); reserve funds, 1119,558 (£114,887); balance of profit and loss account, £61,130 (133,401 on the other
Si(le) ; leases indemnity fund,. £5.0110 (t5,000); total, £2,422,241 (1:2,578,193). The assets are: freehold land aml buildings, £314,431 (£316,031); leaseholds, -CM9,008 1£516,306); motor and horse omnibuses, horses, harness and yard stock, £958,365 (11.152,752); plant and :stores, 1:297,700 (£267,43.51; unexpired value of licences and insurances, .£3,940 (£6,200): sundry debtors, £74,421 (153,682); cash at hankers and III hand, 170,030 (152,754); investments. £178,733
( £1_78.2671. We regard the stria veluations es much ton high. having regard to the number of useless and pertly-out-of-date chassis in stock. and we fail to understand why the plant and stores should average those upon 1300 per effective motorbus on lied or under ram street ion . These points deserve elneidatilm o l the amnia] meeting.
With 110,747 derived from interest and divideuds, there is 4:133.s8o at the credit of revenue aceount. The ad
verse 'ethernet' the old account absorbs 133.4111. debenture and loan interest takes 135,986, the leases :sinking fund requires £5.357, and 1:01.136 is eft lur alloeatirm. The directors recommend that C4-5.700 be applied to payment of the whole arrears of dividend on the preferenee shares, and that £15,436 be carried forward.
The auditors' certificate makes no reference to depreciation of the motorbuses: last year, it was specially mentioned that none had been charged. We defer 0111' comments upon this and other features until after flue animal general meeting.