From the Dover Express and East Kent News, 17 April, 1908.

BREWERS IN LIQUIDATION

THOMAS PHILLIPS & CO LTD

The first meeting of the creditors of Thomas Phillips and Co. Ltd. brewers of West Malling and Dover, against whom a winding up order was made by Mr. Justice Neville in December last, was held on Tuesday in London. The statement of affairs issued by Mr. H. Brougham, Senior Official Receiver and Provisional Liquidator, shows gross liabilities of £131,786 10s. 2d. The total assets are estimated at £85,432 0s. 10d., including property valued at £17,460 4s. 6d., and the estimated deficiency is returned at £55,388 1s. 1d. The account as regards contributors stands as follows:- Ordinary shares of £1 each, issued as fully paid to vendors, £31,267; preference shares of £5 each, issued as fully paid to vendors, £35,745; amount called up at £5 per share on 3548 shares, £17,740; deficiency as above, £55,382 1s. 1d.; total deficiency of £110,134 1s. 1d.

The Assistant Official Receiver in his observations says: The Company were registered on 28th March 1898. It was formed to take over as going concerns three brewery properties, and to carry on business as brewers, maltsters, etc. By the purchase agreement, which was entered into on 29th March, 1898, Phillips sold to the Company the business of the Abbey Brewery, West Malling, which had been carried on by him previously in the name of Thomas Phillips and Co., also the freehold breweries known as the "Diamond Brewery", Dover, and the Park Brewery, Camberwell. The prospectus contained a valuation by Bromley, Son, and Kelday, of the properties to be acquired by the Company, purporting to show that the actual assets exclusive of goodwill, exceeded in value the amount of the purchase price of £210,000. The valuers further reported that the annual value of the businesses to be acquired for the previous two years had amounted to upwards of £12,730 5s. and were capable of being considerably increased. The Company proceeded to allotment on the 2nd April, 1898, upon which date 2848 preference shares were allotted for cash. Subsequently 700 further preference shares were allotted for cash, and 7149 preference and 31,267 ordinary shares were issued to the vendor or his nominees as fully paid in part payment of the purchase consideration. Of these £100,000 debenture stock issued by the Company, £36,400 appears to have been issued for cash consideration, and the balance to the vendor for his nominees to secure payment of a portion of the purchase consideration. According to issued balance sheets the Company traded since its formation down to the end of 1906 with the following results:

For the year 1899, net profit of £5137 6s. 4d.;

1900, £5863 11s. 7d.;

1901, £6556 12s. 7d.;

1902, £6867 8s. 10d.;

1903, £6724 4s. 4d.;

1904, £6764 9s. 5d.;

1905, £5336 8s. 4d.;

1906, £4141 18s. 5d.;

Half-yearly dividends at the rate of 5½ per cent, per annum are stated to have been paid up to 30th June, 1904 (inclusive), upon a portion of the preference shares of the Company, viz, those which had been subscribed for by the public. The failure of the company is attributed by Evenden and Phillips primarily to pressure by creditors, and secondly to change of the Company's management and policy. In the opinion of Blair the failure is due to the calling in of a mortgage for £20,000, and also to the mistaken policy of entering into an arrangement with a large firm of London brewers for the supply of London houses belonging to, and forming one-third of the trade of the Company, by which arrangement, Blair estimates that the Company suffered a loss of £1500 per annum.

The unsecured creditors include the following:-

Apps Brothers, West Malling, £10 1s. 6d.;

Bradley Brothers, Dover, £32 15s.;

W. P. Dickenson, Maidstone, £70 11s. 3d.;

J. A. Davison, West Malling, £49 18s. 1d.;

L. L. Godden, West Malling, £48 9s. 7d.;

Gorham, Warner, and Sons, Tonbridge, £33 7s. 3d.;

T. D. Grates, Bromley, £24 2s. 2d.;

G. E. Hide, East Malling, £90 10s. 6d.;

Mowll and Co., Dover, £30 3s.;

J. Parsons, Dover, £186 2s. 3d.;

Pine and Son, Maidstone, £152 18s. 6d.;

H. J. Poynter, West Malling, £16 11s. 5d.;

Pierce and Musson, Dover, £15 17s. 11d.;

Worsfold and Hayward, Dover, £41 12s.;

G. B. Wells, Dover, £12 10s.; and

C. R. Ayres, Maidstone, £10.

It was decided to leave the liquidation in the hands of the Official Receiver.