VICKERS, LIMITED.

New Zealand Herald, Volume LXVII, Issue 20560, 10 May 1930, Page 7

VICKERS, LIMITED.

(Published by Arrangement.)

STRONG FINANCIAL POSITION, The report and statement of accounts of Vickers, Limited, for (he year ended December 31, sliows that the gross profit! were £1,270,999, compared with £1,249,234 in 1023. After providing £172,500 for depreciation, and £144.773 for income-tax, against £125,000, the not profit works out to £941,971, compared villi £939,903; The profits of the subsidiary companies for the year are included iti the above figure of profit to tie extent of the divdonds declared l\v those companies making profits, less the amount of losses proportionate to Vict: its holding in thos» companies making losses, which amount has been written off the book values of the shares in or loans t<j those companies. In other words, the profits are arrived at after deducting losses. The directors have again transferred £250,000 tt» reserve fund, they again recommend a dividend of 3 per cent, less tax on tlia Ordinary share capital and carry forward £228,755 against £217,704. The balancesheet reveals a position of great financial strength as will bo seen' from the following table showing' the assets and liabilities :

! Nearly the /whole of iho increase of I £615.659 in the total of the assets is ac- | counted for by the addition to the floating assets which amount to ££1,248,352, | and is equal to over 42 per cent, of the ! total. The margin of these assets over I current liabilities is nominally £4,610,489, but actually it is larger than this by ;i substantial figure, for the current liabilities include this year tho sum of £3.266,404 (against £2,662,376 a year ago), as " Proj vision for Contingencies and. Balance of i Capital Reserve made on Reduction of Capital." This item represents such it large pi'oportion of current liabilities tha's it must be regarded as another illustration of the conservative financial policy of tho board. The reorganisation and rationalisation of Vickcrs, Limited, has now been completed, and this famous firm of shipbuilders, armament and aeroplane makers, and manufacturers of steel of all kinds,, is now a holding and financing company.; It has rightly been described as performj ing the functions of an " industrial bank ' lin relation to its subsidiary companies 1 which include Vickers-Armstrongs (which l it controls), the Metropolitan-Cammel.l. Carriage, Wagon and Finance Company, I the English Steel Corporation, Vickcrs ; (Aviation), Limited, and Supermarma 1 Aviation Works, Limited, Ihe_ strong financial position of Vickers, Limited, cn- ! ables it, at any time, to supplement the | ordinary financial facilities obtainable by / 1 its subsidiaries through the usual hanking channels. Thus the finances of tho Vickers group have been fortified in accordance with the best and most modern ideas, though in a way that was not contemplated by tho big industrial companies before the war. The various companies comprising tlie group are. therefore, as- : snred of the necessary finance to undertake even tho largest contracts. SHEEPSKINS SALES. IMPROVEMENT IN VALUES. LONDON, May 8. At the London sheepskin sales 3600 were offered and 25 per cent, were withdrawn. There was good general competition and all prices advanced. Australian crossbred,s word Ik to 10 per cent, up. and New Zealands 5 per -cent. Australian Merino combings were 10 per cent, up, clothings 74 per cent, and faulty sorts, par to 5 per cent. up. ■ Dalgety and Company, Limited, has received tho following cablegram from its London house, dated Mav 8-Sheep-skins: The attendance at the sales was good, and there was a good demand from homo and foreign buyers. As compared with closing rates of last series: Merino combing, 10 per cent, higher; clothing, 5 per cent, to I), per «.ent. higher; crossbred, 5 per cent, to 10 per cent, higher generally.

LIABILITIES. 1929. 1926. Share Canital and Reserves— 750,000 5 per cent. pref. stock 750,000 5 per cent. pref. shares 750,000 750,000 u per rent, tax irio cum. pref. shares 6,863,807 6,803,807 Ord. Shares of 03 Sri 4,105,161 each . . ■ • 4.105,161 Reserve fund 750,000 500,000 £1 3,218.908 C12,968,90S Debenture capital . . 3.2S4.784 8,281,78-1 Creditors and Provisions Sundry creditors, including provision for income-tax, etc. 1,054,006 1,269,233 Provision _ for contingencies and balance of capital reserve made on reduction of capital 3,266,404 2,662,376 Amounts _ owing to subsidiary companies 116,457 160,650 Final pref. dividends for 1029 201,595 201,595 £.1,633,402. £1,283,851 Profit and Loss Account— Brought forward 217,704 208,722 Profit 911,971 939,903 Pref. dividends 418.190 418,191 Balance ,. £741,485 £730,434 Balance-sheet total £21,883,699 £21,268,040 ASSETS. 1929. 1928. £ £ Fixed Assets— 1. Investments: (a) In shares and debs. of subsidiary companies— 1. Vickers - Arm6,189,356 strongs shares , . 6,282,870 2. Metropolitan-Cam-mell Carriage Wagon and Finance Company 2,721,813 share.! 2,686,221 3. English Steel Corporation shares . 64,374 — 4. Other subsidiary companies-— 3,455,887 Shares .. 2,731,676 Debentures 19,606 139,606 (b) In Taylor Bro3., Ltd. loan 400.000 — 2. Vickers-Armstrongs, Limited— Balance of purchase ' price for which 7 per cent. cum. " A " pref. ehares will be allotted . . 450.000 — £12,634,747 £12,506,662 Floating Assets— Stocks and work in 62,466 progress . — Sundry debtors <■. 676,721 899,481 Owingt by subsidiary 2,120,356 companies .. 2,269,697 Investments— In unquoted shnres 253,516 and securities 245,952 In quoted shares and securities (other than Brit220,493 ish and Col. Govt.) 307,257 Bills receivable 312,243. 289,402 Cash 918.149 1.349.191 British Govt, securities 4,264,253 o,S27,<10U Colonial Govt, securi239,074 ties 224,GSO £9,24S,952 £8,761,378 Balance-sheet total £21.8S3.699 X21.26S.010