FODENS LIMITED
Page 22
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The fifty-sixth annual general meeting of Fodeas Limited was held on July 30 at' Elivorth Works, Sandbach. Mr. James Wild, the Chairman, said in his report:— The profit . after charging depreciation is £272,181 and after charging taxation the net profit is £146;117, which compares with £182,230 for the year ended March 30, 1957.
We considefthis year's profit figures to be satisfactory in vice of the very difficult trading conditions which have developed during the past year. Owing to the credit squeeze and general slackening-off of capital development, competition today, is extremely keen in a buyer's market. In addition to this, the Government's policy to reduce expenditure on the Services resulted in a reduction of orders received from -the-Admiralty. However, we view the future With confidence and are recommending a dividend of 121%, which is the same as last year.
We have been able to maintain and even reduce our' selling prices due to higher efficiency and economies made in the factory. We are introducing several new models to our range of vehicles, which should have a worldwide appeal. These include a large dump truck with payload capacity of 28 tons and a new Foden engine developing 150 b.h.p., which we believe to be the lightest and most compact unit available on the market today.
The threat to renationalize road transport has made some operators reluctant to place orders for new vehicles and to expand their businesses. It is probable therefore that -keen competition for business in the industry will continue. Credit restrictions have also played their part in narrowing the potential avenues of business, but we are happy to note that some alleviation in this respect has taken place ,recently. lt is unfortunate that the Chancellor of the Exchequer in his last budget could not see -his way to abolishing Purchase Tax on commercial vehicles, but perhaps we should take a crumb of comfort in the knowledge that the industry is making a substantial contribution to the nation's revenue by carrying this penal tax, General World conditions at the present "time are responsible for a note of caution in general trading conditions, but we neverthtless view the future with reasoned optimismin the knowledge that the quality and, the variety of our products will enable us to -compete successfully . and thus retain the good name which we have
held for so long.
I am' happy to 'say once again that we have received the wholehearted co-operation and support of all our employees during the year, and I thank them all on your behalf.
The report was adopted.