Brewery Profits

Here's a real shock - breweries were doing well during the war. Who would have thought it?

Barclay Perkins were doing nicely, at least according to the newspaper.

"Brewery Profits
Annual reports now being issued by various brewery companies confirm market views that the industry is thriving. Brewery stocks and shares have been extensively bought in markets for some time and the section is maintaining a good tone while other industrials are inclined to slip back. A report for the year to March 31 last is issued by Barclay Perkins & Company, the London brewery, which has already announced a 6 per cent. Ordinary dividend for the year against 5 per cent for 1942 and 3.5% per cent for 1941. The profit last year was £125,002, after making provision for depreciation, Government taxation, Debenture interest and providing for deferred repairs. A comparative figure for the previous year was £116,739. The tax provision was £231,448 against £230,007 while deferred repairs received £100,000 against £60,000. After providing for dividend and again transferring £30,000 for contingency, the carry forward is £105,109 against £104,360 brought in. The chairman, Lt-Col. Robert W. Barclay, states that brewing materials during The year were costly but the maximum price for  barley was controlled, which prevented the abnormal prices paid in the previous year. He adds that nearly everything purchased for the brewing and distribution of beer was at a high price. Despite this, the past year was more normal than some since 1939. Difficulty was experienced in keeping plant and machinery in an efficient state, particularly bottling machinery, owing to the difficulty of obtaining spare parts. The balance-sheet shows stocks of beer, malt hops, &c, at £612,016, against £387,035 the previous year. The increase is due to higher duties and a reflection is seen in the cash position at £199,026, against £208,450. The £1 Ordinary stand at 28s 9d."
The Scotsman - Friday 13 August 1943, page 2.

A net profit of £125,002 might sound impressive, but in 1939 the figure was £317,788. So why did the newspaper say how well they were doing?

Here are the fixed prices for barley which was mentioned in the article.

Controlled prices for barley
Year	Price on Farm	Merchants' Comm.
1942	140/-	2/6d. limit 5/-
1943	110/-	2/6d. limit 5/-
1944	100/-	2/- limit 5/-
1945	100/-	2/- limit 5/-
1946	101-	2/- limit 4/-
1947	105/10d.	2/6d. limit 5/-
1948	120/-	2/6d. limit 5/-
Source:
Brewing notebook A-H held at the London Metropolitan Archives, document number ACC/2305/1/711/1.