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Aviation History
1954
1954 - 1257.PDF
2 (Advertisement) FLIGHT 7 MAY 1954 COMPANY REPORT THE BRISTOL AEROPLANE COMPANY LIMITED THE 44th ANNUAL GENERAL MEETING of The Bristol Aero plane Company Limited will be held on May 20th at Filton House, Filton, Bristol. The following is the statement by the Chairman, Sir William G. Verdon Smith, C.B.E. which has been circulated with the report and accounts for the year ended December 31st, 1953. FINANCIAL MATTERS The Directors' Report comments on special items in the Accounts and it is only necessary in this statement to refer briefly to one or two important features. Refer ences are to the Consolidated statements which reflect the combined results of the parent Company's Divisions and the sub sidiaries. The general picture presented by the Accounts is encouraging and your Board is again able to report that group turnover reached a new high level, both as regards sales of military equipment for H.M. Forces and other products for the home and export markets. The Consolidated Profit and Loss Ac count shows that the trading profit for the year before charging depreciation has in creased by £239,480 from £2,316,427 to £2,555,907. Against this we have a substan tial rise in the depreciation charge from £860,796 to £1,132,443 reflecting the con tinued high level of our investment in buildings and plant both here and abroad, leaving our trading profits after deprecia tion at £1,423,464 compared with £1,455,631 in 1952. There is now a full year's charge for interest amounting to £21,661 on the $1,200,000 of 5% mortgage bonds which, as we reported last year, were raised in Canada in 1952 in connection with the con struction of our new plant in Montreal. The charge for other interest at £18,040 com pares with a credit of £44,036 in the pre vious year, this change being largely due to the increased level of advances from our Bankers. The total charge for taxation at £795,115 is equivalent to 58% of our profits com pared with 62% in 1952. The net profit for the year, to which all our subsidiaries have contributed, amounts to £582,661 compared with £563,829 in the previous year. This increase in net profits may be considered small in relation to a record turnover but Stockholders will realise that at a time when the Company's business is expanding there are many initial outlays to be borne out of profits in con nection with the new and large projects upon which we are engaged. The Consolidated Balance Sheet clearly illustrates the continuing expansion of our activities. Fixed Assets have risen from £5-2m. to £6-6m. following a further rise in our capital expenditure from just over £2m. in 1952 to nearly £2-5m. in 1953. Our com mitments on capital expenditure at 31st December 1953 amounted to £1,322,822 and the annual outlay must continue on a substantial scale if we are to maintain our competitive position; it is therefore a matter of vital concern to Stockholders that Government policy in relation to taxation and the procurement of military equipment should permit us to retain sufficient funds to cover at least a major portion of this capital expenditure from our internal resources. We therefore welcome the new Investment Allowances introduced by the Chancellor of the Exchequer in his recent Budget. Stocks have again increased by £12m. to £ 10.6m. though the rate of increase has been rather less than in the previous year. Debtors have increased from £49m. to £5-4m. reflecting increased turnover during the year. Advances from our Bankers have risen from £-68m. to £2-3m. in line with our expectations as reported to you last year. Your Board continue to keep the relation ship of permanent capital and temporary borrowing under close review. From the net profit of £582,661 the Board have made a transfer of £250,000 to general reserve which makes the total at the credit of that account £3m. and, after bringing in the balance of £455,035 from the previous year, there is a sum of £787,696 available. The Board are recommending a Final Dividend of 6^% on the Ordinary stock making with the Interim Dividend of 3|% already paid, a total of 10% for the year and leaving £498,946 to be carried forward. The gross dividend distribution for 1953 on the Ordinary and Preference Capital, as increased in December 1952 by a bonus issue to Ordinary Stockholders, is therefore £525,000—an increase of £35,475 over the gross distribution of £489,525 in 1952. This sum of £35,475 is equivalent to an addition of slightly more than 1% on the old Ordinary Capital of £3-3m. GENERAL REVIEW The year 1953 was for the Company primarily one of further progress in the development of our principal new projects. At the same time our manufacturing resources were well occupied with a steady programme of aircraft and engines, and our engine overhaul shops at home and over seas were busier than ever before in peace time. We shared with the aircraft industry generally the high level of activity stimulated by the Defence Programme and we also succeeded in increasing our over seas sales in approximately the same pro portion as the total export sales of the whole industry, an increase over last year of 45%. During the year we continued to add to our technical and production resources, we strengthened our overseas representation, and we brought into active operation new plants in Sunderland, Montreal and Sydney. At the same time as our current sales were increasing the pros pects for further orders looked bright. AIRCRAFT, HELICOPTERS, AND MISSILES In our Aircraft Division, current deliveries for the year were chiefly of Bristol Freighters and of Bristol Sycamore helicopters, together with armament equipment for all three Services and a growing programme of test vehicles for the Guided Weapon Ranges in this country and in Australia. With regard to helicopters, after a long period of disappointment a really encouraging degree of in terest is now being taken in our projects by the Services as well as by civil operators, 'and the pro spect of orders for the Sycamore and for the Type 173 has justified a substantial increase in productive capacity. This is being achieved by making our Weston-super-Mare factory a part of the Aircraft Division, establishing helicopter production there, together with our aircraft and allied work, and trans ferring the aluminium building activity, hitherto carried on at Weston, to other nearby premises which we shall occupy as tenants of the Ministry of Supply. The production of helicopters to British designs is now assured; during the next few years valuable experience will thus be gained, and we can now look forward to a time, in our judgment still further away than popular opinion recognises, when the civil operation of helicopters has become less of a novelty and more of a normal means of economic transport. During the year excellent progress was made with the development and early production stages of the Britannia airliner programme. By the end of the year the prototype had flown over 220 hours and the second aircraft had just started handling trials; no major problems had been encountered, and the prospects of making the first deliveries to B.O.A.C- this year as promised looked good. It was a serious disappointment therefore to lose the second aircraft in the River Severn after an emergency landing on 4th February last. But aircraft and aero engine de velopment is punctuated by such experiences; it is of course the very aim and purpose of development flying to learn in good time, and thus to secure the highest possible standards of flight safety for all
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