20th November, 1923
To the Directors of the Denaby and Cadeby Main Collieries, Ltd.
Denaby Main, near Rotherham
In accordance with your instructions we have examined the Books and Accounts of The Denaby and Cadeby Main Collieries Ltd., and of its subsidiary The Denaby Shipping and Commercial Co. Ltd., and also of The Washington Coal Co. Ltd., for the twelve years ended 30th June, 1923.
The profits for that period after providing for Excess Profits, Duty, Coal mines Excess Payments and Coal Levy, and bringing into account Coal Award, but before charging Corporation Profits Tax, Income Tax, Interest on Debentures and Loans, of amortaisation of the Colliery Leases and Freehold Property, have been as Follows:-
The Denaby and Cadeby Main The Washington Coal Co. Ltd. Collieries, Ltd., Years ending 30th June Years Ending 31st December 1911 12,681 (six months from 1st July) 1912 192,186 29,555 1913 164,517 24,430 1914 164,422 18,980 1915 160,066 26,205 1916 205,457 53,772 1917 246,982 31,087 1918 216,625 33,416 1919 221,223 32,347 1920 271,038 45,330 1921 234,524 15,273 1922 (loss) -17,930 38,684 1923 176,052 29,543 (six months to 30th June) £2,235,162 £391,303 Total Profit for the twelve years £2,626,465 Average Annual Profit 218,872
In arriving at the above profits, in the case of the Denaby and Cadeby Main Collieries Ltd., depreciation on Plant and Wagons has been charged to the extent allowed by the Inland Revenue for taxation purposes.
In the case of the Washington Coal Co., Ltd., liabilities of the companies to Excess Profits Duty and Coal Levy have not yet been agreed but estimates of these liabilities have been made in arriving at the above profits.
The coal merchanting business of the Denaby Shipping and Commercial Co., Ltd.,having been taken over by The Denaby and Cadeby Main Collieries Ltd as from 1st July, 1923, the profits of such business have been incorporated in the profits shown above.
We are Yours faithfully,
THOMAS McLINTOCK & CO.