VICKERS, LIMITED.

Press, Volume LXVIII, Issue 20550, 19 May 1932, Page 10

VICKERS, LIMITED.

STRONG FINANCIAL POSITION. NEW PRODUCTS OF FAMOUS FIRM. The report of Vickers, Ltd., for the year endocl December 31st, 1931, shows that in spite of the world-wide industrial depression and financial' disturbance, the Company was able to achieve results which 110 other similar concern has paralleled. The net trading profit was £943,811, compared with £1,173,269. The result is surprisingly good in respect to :i year of depression unequalled in the memory of the City of London. The sum of £369,318 is required to meet Debenture Interest, Income Tax, and other. expenses; the preference dividends absorb £418,190, and the Directors recommend a dividend of 5 per cent., instead of the usual 8 per cent, on the Ordinary Shares. The balance carried forward is increased from £231,970 to £234,329. The Balance Sheet shows that the Company maintains as usual an exceptionally strong financial position. It holds no less than £4,119,764 in cash and Government Securities, while its total Floating assets reach the sum of £8,518,377. This is far in excess of the amounts owing to sundry creditors, including provisions for Income Tax and contingencies which together amount to £1,443,810. British Government Securities have a book value of £3,560,448, and Colonial Government Securities a book value of £5689. These figures represent the cost price, tho written down value, or market price, whichever is the lowest. As there was a heavy depreciation in Government Securities at the end of December, which has since been fully recovered, it follows that at the present time there is a substantial hidden reserve in this item. The total of the Balance Sheet is £21,380,287, of which more than one-third is liquid. The fixed assets, which stand in the Balance Sheet at £12,861,910, are made up of investments in, and loans to, Subsidiary Companies, and nre conservatively valued. For instance, the book valu<3 of the Company's holding in Vickers-Armstrongs, Ltd., the chief operating Company, is £6,732,870, which is represented by £5,849,439 of 7 per cent. Cumulative "A" Preference Shares, £ 1,500,000 of 6 per cent. Cumulative "B Shares, and £5,206,800 Ordinary Shares. This means that '"A" Preference Shares are valued in the books at par, the "B" Preference Shares at 11/9 each only, and the large folding of Ordinary Shares at nil. When the revival in trade comes this valuation will contain a large hidden reserve. Vickers-Armstrongs' Balance-Sheet shows a profit of £282,244 for the year. This is struck after allowing no less than £233,826 for depreciation of buildings, plant, and tools, which, as "The Times" has observed, "is no inconsiderable performance in a year such as 1931." Floating Assets were increased during the year from £3,711,959 to £4,119,334; they exceed the current liabilities by £2,381,901. Tho report Has made a very good impression in financial circles in the City of London, for it shows that the Company • is in an exceptional position to take advantage of any revival in trade. tfelow are tho figures of the BalanceSheet:—.

BURNSIDE MARKET.

(PRESS ASSOCIA.TIOX TILEG3AM.) DUNEDIN, May 18.' Fat cattle, sheep, and lambs were sold at firm rates at Burnside to-day, but store cattle and pigs met with a dull sale, the latter at lower* values. Fat Cattle—The entry, which numbered 280 head, consisted o£ medium to fair quality animals with a few pons of extra choice heavy bullocks, a number of heifers and fair to prime cows. The opening prices were a shade in advance of those obtained at the previous sale, and although there was an easing later, closing prices were on a par with those of last woek. Extra heavy bullocks sold to £ll 12s 6d, heavy to £ll, medium to £8 15s, light to £7; heavy heifers to £6 ss, medium to £5 17s 6d, light to £4 ss; heavy cows to £6 10s, medium to £4 15s, and light to £3 15s. Prime ox beef sold on the basis of about 21s per 1001b. Fat Sheep—About 1500 were offered. There was a sprinkling of heavy open-wool wethers, a few extra heavy shorn sheep, and a large number of ewes. The opening prices showed little change, but valued advanced about Is per head for the best wethers and ewes. Jixtra heavy shorn wethers sold to 255, extra prime to 19s 9d, prime to 16s, others to s 9d; extra heavy ewes to 12s 9d, heavy lis 6d, medium to 9s 9d. Fat Lambs —Between 400 and 500 iambs were yarded. The entry was of mixed quality, but included several pens of prime lambs, lliere was good competition at firm pricesi Prime sold to 16s 6d. i j,™ Cattle—The entry of 180 head included 50 fair to good forward bullocks and tho usual number of mixed young animals. J-ne yarding met with dull competition. Very jorward four-year-old bullocks sold to £7 2s J 5 • .S°°d forward three-year-olds to £5 Bs, medium three-year-olds to £3 9s, medium two-year-olds to £2 Bs, and forward Hereford heifers from £2 3s to £3 3s. «i ? S r^'l6 entr y consisted of 91 fats and i> .if es " * ats consisted mostly of porKers. Both baconers and porkers sold at 2iJ"? c « ? ® s l ,er ''« ad, but stores were im ? a ' ' a ' e ra ' es - Prices obtained for r_ j S lvtre equivalent to 5Jd and baconers to 4Jd per lb. TEMUKA STCJCK SALE. There was an average attendance of farmel s and dealers at the Temuka sale on Tuesday. In the cattle department the yarding was not quite as largo as that at the last sale, but the sheep pens were well filled with fat lambs, which met with good competition from the export representatives operating. The pig pens were full, and the low rpu ru '' n S at thfl last sale were maintained, The following sales were effected: — Prime bullocks £7 15a, £7 10s; medium £4 10s to £5 15s, others £3 to £4; fat cows brought up to £5 10s, those in lighter condition £3_los to £4 10s, runners up to £2 iis. In keeping with the fat lines, the market for stores was dull, and the entry hard to dispose of. Empty heifers made from 15s to 17s 6d, and empty cows realised the same prices.- The sale of dairy rattle showed a drop of about £1 per head. Well-conditioned lines sold at £5 15a down to £3 10s.

' At the Annual Meeting of Vickers, r +rl held on April 4th, the ChairJSk; Serfftto Hon. Sir Berber. A Lawrence, G.C.8., "plained that the increase in Bills Receivable was due to the fact that the Company was in the enviable position of having liquid assets to linance contracts for ships and thus secure orders for the shipyards, which less iortunaieiy situated concerns were unable to take. Referring to Vickers-Armstrongs, Ltd which runs the Warship and Passenger Shipbuilding, Armament, Steel and General Engineering businesses, General Lawrence said that the concentration of the Company's products in the best situated works Had been completed. The plant and equipment of all the operating Works and Shipyards were thoroughly efficient and up-to-date, the constant objective ot the management being to provide manufacturing facilities which would reduce production costs. Considerable progress has been made with the development of Land Armaments in certain brandies, of which until recent years the Company was almost unknown. . . Orders were being obtained for AntiAircraft artillery Predictors, and Tanks, including an amphibious tank which Vickers-Armstrongs were the first to introduce. Had the demand for-Armaments been normal the expansion of the Company's business in this direction would have proved very remunerative, and even under present circumstances the' volume of work obtained is proving distinctly helpful. Last year the Company was able to secure a satisfactory order from the Portuguese Government in addition to work from other foreign powers. Vicker?- Armstrongs have maintained" their position in the foremost rank as builders of Passenger Liners. During the past year they had completed the "Stiatlin&ver" and the "Strathaird" for the P. and O. Company, the "Monarch of Bermuda" for the Furness Withy Company, and the' "Rangatira'' for the Union Steam Ship Co., of New Zealand. This year an order has been received for a sister ship to replace the "Bermuda," destroyed by fire. Vickers-Armstrongs in 1931 headed the list of firms for horse power of machinery delivered and only just missed first place in the total output of shipping tonnage. The English Steel Corporation, the main subsidiary Company of VickersArmstrongs, has decided to modernise, said General Lawrence, the works at Sheffield in o.rder to secure greater efficiency and economy in production. This modernisation will ensure the availability of supply of that high-1 class steel for which Viekers for a period of over' 65 years have had a world reputation. It has been provisionally arranged that: Vickers, Ltd., shall provide the finance required. Tho Capital Reduction scheme which has been adopted by the English Steel Corporation is merely a 'book-keeping adjustment which has already been more than amply provided for in the Vickers ' Balance-Sheet. Vickers (Aviation), Ltd., which is entirely controlled by Vickers, ■ Ltd., also owns the Supermaiine Aviation Works, Ltd., and the. financial return from this Aviation group, said General Lawrence, had again satisfaction. He reminded the shareholders that the seaplane which won the Schneider Trophy outright was built by the Supermarine Company at their Southampton Works, thus making the fourth occasion upon which Supermarine seaplanes were successful in this International contest. ■ t The Rolling Stock interests of Vickers are amalgamated with those of Cammell Laird and Co., Ltd., in a new Company called the Metropolitan-Cam-mell Carriage, Wagon, and ' Finance Co., Ltd. Since this fusion took place.

* a j Sheep--Wethers sold at 17b, 16s, 14s, 12s 6d; ewes 7s 6d to 9s, export lines 5s to ?, 8t „ —Host of the lines offered were well .finished, and were disposed of at prices ranging from 14s to 16s 6d, lighter sorts from lis to 13s 6d. Store Sheep—The entry was mainly composed of aged ewes, -which -were sold from Is 4d to Is lOd. A line of four-tooth wethers was passed in at lis 6d. Six-tooth halfbred -wethers were sold at 9s, and a line of m.s._ lambs brought 7s lOd. P'SS—Weaners 5s to 6s, small stores- 9s, 12s, to £1; large stores 28s to 30s.