Financial Times - London, 15 November 1911. - page 2.
United Malaysian Rubber.
The report of the United Malaysian Rubber Companv, Ltd., for the year ended Sist May last, to be submitted to the meeting on the 20th instant, covers the first year of the company's trading. The expectations of those who advised the Board on the formation of the company have so far not been realised, and, instead of the large profits anticipated being made, a considerable deficit bas been incurred. This has been in a great measure due to the process of manufacture acquired by the company not having been perfected when the business was taken over, and to a large amount of money having in consequence to be spent in work of an experimental nature. It was further due to a number of fortuitous circumstances, which could not very well have been foreseen; sucli, for instance, as temporary cessation of work at the Goebilt factory, owing to breakdown in the machinery, defects in the manner of applying the solvent, and various other causes; the delay in the completion of the Karimon factory, in consequence of the nature of the soil requiring foundations of a much greater extent and stability than the borings indicated would be necessary; the unexpected rise in the price of jelutong. caused by excessive competition in the buying of it, and, on the other hand, the heavy fall which has taken place in the price of rubber. But, notwithstanding these drawbacks, the directors report that considerable progress has been made, and tliey have every reason to hope that they have now turned the corner, and that the ultimate success of the business is practically assured. They consider that the large amount of money which has been expended should not be regarded as wasted, for it has enabled them to complete the process of manufacture, and to demonstrate beyond question the fact thatbymeans of this process liighgrade rubber can be produced in large quantities from jelutong and sold (even at the present low prices) so as to yield a substantial protit on every pound weight of rubber produced. Some of the shipments of rubber which have reaclied this company in the earlier stages of the undertaking were very far from being satisfactory in qualitv, and it has taken some time for the directors to get over the ill efl'ects which were thus produced on the market for their rubber, but this difflculty has now been largely overcome, and the rubber, which is now being produced in increasing quantities, is nearly all of first-rate quality, and a ready mai ket is being found for it at remunerative prices, not only in England, but in other parts of Europe and in America. Considerable economies in the working of the business of the company have recently been eflected, and the management hopes to make further progress in this direction. The facts above enumerated lead the directors to believe that tliere is a great future in store for the company, especially when the new factory at Karimon starts working which they have reason to expect will be in January next. They therefore appeal to the shareholders for a renewal of their confidence, and beg to assure them tliat, if they will only exercise a little patience and forbearance, there is every reason to hope that by the end of another year a balance-sheet of a much more satisfactory nature may be presented to them. The accounts show a trading loss of £27,S00, to which must be added the balance of administration expenses, £ 14,100—together £ 41,900.
Financial Times — London, 15 November 1911. — page 6.
United Malaysian Results.
Owing to the magnitude of the undertaking and the controversy which arose in respect of the value of jelutong some time ago the first report of the 1 nited Malaysian Rubber Company, just issued, is a document of more than ordinary interest. The salient fact, which is admitted by the Directors, is that expectations with regard to the Company have not been realised. This is very evident when it is seeu that the balance-sheet shows a trading loss for the eight months to .'Sist May last of £ 27,800, and the inclusion of the balance of administrative expenditure brings the total debit to £42.000. In addition, preliminary expenses account for an outlay of another £15,000. The profits estimated in the prospectus in April, 1910, were £ 100,(00 for six months in 1910 and £600,000 for 1911. Why such disappointing results have been achieved will assuredly form the subject of careful inquiry on the part of the shareholders. A number of reasons are