RECONSTRUCTED FIRM.

New Zealand Herald, Volume LXVII, Issue 20619, 18 July 1930, Page 9

RECONSTRUCTED FIRM.

ARMSTRON G-WH ITWORTH. FIRST REPORT ISSUED. STRONG FINANCIAL POSITION. The first report of the Armstrong-Whit-worth Securities Company in its present form has been issued and covers the year 1929. In accordance with the scheme of arrangement approved by the Court in March, 1929, the name of Sir W. G. Armstrong, Whitworth and Company, was changed to Armstrong-Whitworth Securities Company, and two new subsidiary operating companies—Sir W. G. Armstrong, Whitworth and Company (Engineers), and Sir W. G. Armstrong, Whitworth and Company (Shipbuilders)—were incorporated in July, 1929. The report states that these subsidiaries are now in full operation. A third subs diary operating company, Sir W G Armstrong, Whitworth and Company I lronfounders). has been funned, to operate as from January 1 last. The balance sheet shows shares in and amounts owing from subsidiary companies at £2,956.395, and trade investments at £1,016,869. The net profit foi the year is shown at £66,141, out of which there has been appropriated £54,426 as provision against the trading losses of subsidiary companies, leaving £11,715 to be carried forward. The report points out that the engineers and shipbuilders companies having only been incorpora ted in July, 1929, all current contracts in hand at December 31, 1928, were carried out for the account and at the cost of the Securities Company, with the result that losses on a number of the contracts completed during the year under review have accrued to the Securities Company. The report, therefore covers a period of transition and reorganisation during a large portion of which the company was still acting as an operating company. Attached to the report is a statement showing tho consolidated assets and liabilities of the company and it-6 subsidiaries as at December last. This discloses a strong financial position. Floating assets total £3,752.685, of which £1,433.235 is in the form of cash, Ilritish Treasury bills, and loans at short notice. Goodwill of businesses purclusod stands at £9467. The holding of 2,(>57,612 ordinary shares of £1 each in Vickers-Armstrongs, Limited, is carried at £BB:>,Sfl. Orders in 1929, states the report, were in most cases taken under severe coinpetition in the locomotive and engineering businesses, and it was the general experience throughout the industry that contracts were difficult to obtain at remunerative prices. During the latter half of the year, however, the engineers' company's marine engine department was well' occupied with orders on favourable terms; and there is considerable promise in respect to certain new developments in i connection with Diesel engine construc- , tion. In the early part of the year tha i company's shipyards were only partly occupied, but since tha': time several ; orders for tankers were obtained on terrn3 which are confidently expected to show satisfactory profits. The formation of the j National Shipbuilders' Security, Limited, i is a first step toward tie rationalisation of t this industry, which wi 1, it is hoped, j ultimately lead to beneficial results. 1 Craven Brothers (Manchester), Limited, r in which the company has a controlling 3 interes*. begins to show definite improve•ment ■ - a result of its reorganisation; alr thotuli losses could not be avoided durt ing the period of transition, it is antici- " pated that the profit-earning stage will . shortly be reached.