VICKERS LTD.

Wairarapa Daily Times, 11 December 1925, Page 5

VICKERS LTD.

PRUNING OF CAPITAL. LONDON, Thursday. The drastic reconstruction of Vickers Ltd. is recommended by the Commission aj(pointed to inquire into the company’s financial position, in consequence of the reduced earning power arising from post-war depression. The. Commission advises that the capital be, written clown ‘by £12,500,000. Par-reaching changes in the methods of control are recommended, including the dismissal of redundant officials, the shutting down of plants and the winding-up of all unprofitable subsidiary affiliated enterprises. The Commissioners arc of the opinion that the foregoing will enable, the company to resume dividends. —Aus. and N.Z. Cable, Assn.

WRITING-DOWN SCHEME. LON DON, Thusrday. The Vickers scheme of writing down the assets makes the pound share worth (3s Bcl. The Daily News says this drastic pruning of capital merely means a reduction of pound shares, which touched 57s in 1919, and are now at 7s, to nominal value. The deficit will bo further met by the appropriation of £•<>- (100,000 from the reserve and taking £632,000 from the profit and loss account. —Sun. CAUSES OF LOSS. ( Eeceivgd, ‘Friday, 9.5 a.m,) LONDON, Thursday. ■McKenna’s attributes Vickers’ huge loss, firstly, to world reductions of armaments expenditure; secondly, to foreigners manufacturing their own. armaments; thirdly, to the, decline in shipbuilding; fourthly, to foreign competition in world, markets, and fifthly, to financial stringency and European political unrest restricting credit. The company experienced five J I,L " lucky years, and the management had not the special experience necessary to direct such a large industrial undertaking, particularly during a period of protracted- severe depression. Sun.