The Victoria Pottery Company Ltd

Flotation The company issued a prospectus in 1865 under the Companies' Act of 1862.  This is a very early example of the flotation of a limited liability company.  The purpose of the flotation was to purchase the Victoria Pottery, St. Philips, then under construction, together with the Redcross Street pottery, from John Ellis.  Ellis would be paid in shares and not receive any cash and would devote all of his time to the company.  The Redcross Street business is described as prosperous. The capital was be to 20,000 pounds, divided into 1000 shares of 20 pounds each.  One pound was payable on application, 1.50 on allotment, with further calls at intervals of not less than two months.  It was estimated that the total price per share would not exceed 12 pounds. The directors would be: George Cole, King Square, Bristol, Merchant. Alexander M Cowan, Westbourne Place, Clifton, Gentleman. Edward Halsall, Kingsdown, Bristol, Gentleman. Abraham Levy, Temple Street, Bristol, Merchant. Richard Charles Ring, (Messrs R C Ring & Co), Bristol, Merchant.  Ring was a maker of clay pipes. James Smith, (Messrs James Smith & Sons), Castle Green, Bristol, Merchant. John Ellis, Managing Director, (proprietor of the Redcross Street pottery), Bristol. The prospectus extols Bristol as suitable site for the pottery, with its good rail and water links, pointing out the closeness of the pottery to rail stations.  It was claimed the clay could to brought to Bristol at 10 shillings per ton less than to Staffordshire.  It was also stated that finished products could be shipped at 20 shillings per ton less (it does not say where they were to be shipped to!). The Redcross Street pottery closed in 1867, but rates were then paid by John Ellis & Co for 1868-71.  For the location of the the Victoria Pottery see the 1902 map.

1868 Half-Yearly Accounts These show that the flotation had caused a shortage of capital.  It had been planned to raise 12,000 pounds by share capital and borrow 8,000 pounds.  It would seem that at this early date the formation of a limited compnay was not fully understood.  All the capital should have been in shares. Ellis, who was still the managing director, held 225 shares (12 pounds each paid up), on which he had paid a futher call of 2 pounds.  534 other shares had been issued on which 20 pounds had mostly been paid.  It was planned to issue the remaining 241 shares as 6 percent preference shares, which when fully paid up would be converted into ordinary shares.  This would clear the debt owed to the bankers (3,705 pounds). George Cole is described as the chairman.  Other directors (beside Ellis) were D Cullen, A M Cowan, Edward Halsall, James Smith and C J Whittuck.  The accounts are presented in a manner that makes it impossible to determine the actual financial position of the company. Presumably problems persisted, as by 1873 the business was taken over by Pountneys.  Pountneys was not a limited company (at the time), so the purchase was presumably in cash.