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510
The Kinenwito graph Year Book.
Financial Review of 1947
by V. J. BURTT
FOLLOWING the gratifying financial consolidation of 1946, the year 1947 has been a severe testing time, in view of the avalanche of adverse happenings outside the control of the industry.
It is a good thing that directors strengthened their finances when they did. Indeed, had advantage not been taken of the favourable conditions in 1946 provided by Chancellor Dalton, it would have been much more difficult to meet, first, the great strain imposed by the fuel crisis ; then, the exceptionally fine, hot summer which reduced attendances ; followed by further increases in operating expenses ; and finally, the 300 per cent, import duty on foreign films, the full effect of which had still to be assessed at the time of going to Press.
Odeon Consolidation
Main financial development during the year ha§ been the completion of the Odeon re-financing. The consolidation of this group has included the issue of a really informative set of accounts consisting of full reports of each of the three main associated concerns : Odeon Theatres, Odeon Properties, and Odeon Associated Theatres, together with a consolidated balance sheet and profit and loss account of the whole group with comparative results since 1943.
Interesting facts in chart form were also given about average weekly admissions per theatre, weekly attendances, and operating week takings sub-divided between British and foreign films. A map also shows how the group's 1,042 theatres are spread throughout the world.
The big expansion during the. last five years, previously dealt with by means of temporary finance, has now been completelv and permanently re-financed. No less than £13,335,000
has been raised at an average rate of 3.76 per cent, per annum, a no mean achievement.
In the opinion of the directors the group has now ample liquid resources to cover its requirements.
Odeon Theatres, are left with 86 freehold and leasehold theatres which are not subject to any charge, having a book value of £3,555,057, which were valued during the year at £4,989,683 by its professional valuers.
Gaumont Group
Main change in the Gaumont group was an increase in capital to £7,125,000 by the creation of 3,500,000 additional "A" ordinary shares of 5s. each for the purpose of acquiring the shares of Associated Provincial Picture Houses, which is controlled by Provincial Cinematograph Theatres, a subsidiary of Gaumont British Picture Corporation. The object was to further simplify the financial structure of the group with a view to effecting administrative economies and facilitating future developments.
Gaumont directors offered to acquire all the issued ordinary shares of A.P.P.H. (including those held by Provincial Cinematograph Theatres), in exchange for the allotment of 3| "A" ordinary shares of the Corporation, credited as fully paid plus 2s. 6d. in cash in respect of each ordinary share of A.P.P.H.
A.B.P.C. and Crisis
The report of Associated British Picture Corporation, although covering only two months of the crisis period, was estimated by the board to have affected the trading profits by about £200,000. For the group profits amounted to £2,542,274 after E.P.T. and Profits Tax, an actual increase on the year of just over £200,000. The group net