H—l9A

The essential results of the past year's operations appear in the following table:—

The obvious discrepancy between the results of the 1948 and 1949 financial years is simplv explained. SALES The recession in sales is a normal consequence of the closing of uneconomic canteens and the cessation of business with organizations such as Returned Services Associations, Y.M.C.A., and Red Gross Societies. The closing of the Board's bulk stores made the servicing of the aforementioned organizations impracticable and the Board was required by the new Act to function only on Service establishments. GROSS PROFIT As the gross profit necessarily is affected by the value of stock on hand, the reduced grossprofit reflectsthe careful revaluation of stock as a prerequisite to ascertaining the worth of the organization before the important occasion of dividing the Board's funds to which reference is made in a later section of this report. Certain stock distributed throughout the ramifications of the canteen service hitherto have been valued in relation to cost price 4ess usual depreciation, but it will be apparent that by their nature a large proportion of canteen goods procured for use in wartime have become obsolescent either through deterioration, supercession by up-to-date goods of popular demand, the reversion to peacetime packaging, and their general uselessness in peacetime. Consequently, at this stocktaking, following the assembly of stocks from bulk stores which have been closed and the marshalling of unwanted canteen goods, special care has been exercised to value stock on hand at its current disposal value. Hence the percentage of gross profit shows to disadvantage in comparison with former years, but even so it is reconcilable with the generally restricted profit margins applicable to the class of goods to be found in canteens.

2

(1) (2) (3) (4) (5) (6) AdminisYear Ended 31st March, Sales. Net Profit. Gross Profit. All Expenditure. Net Profit. tration Expenses Included in Expenses. £ £ Per Cent. Per Cent. Per Cent. Per Cent. 1940 . 85,626 11,608 26-88 13-32 13-56 3-83 1941 338,623 51,066 29-08 14-00 15-08 1-97 1942 574,739 87,739 26-67 11-40 15-27 0-95 1943 1,742,871 278,514 21-99 6-01 15-98 0-40 1944 2,284,962 307,101 18-69 5-32 13-37 0-36 1945 1,810,897 265,866 20-57 6-09 14-68 0-39 1946 1,151,944 143,072 18-60 7-56 12-42 0-59 1947 393,732 62,157 23-25 13-62 15-79 1-28 1948 198,751 25,357 19-49 17-74 12-75 2-40 1949 171,427 3,302 15-49 15-29 1-94 2-24 8,753,572 Total net profit 1,235,782 Add sundry recovery 83 1,235,865 Distributed to — Defence services 310,375 Canteen Fund Board— Cash 90,680 Investments 708,868 (Nor Contingent liability settled .. 4,684 1,114,607 Undistribu ted 121,258