GUY MOTORS LIMITED
Page 53
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A SUCCESSFUL YEAR'S TRADING
Widespread Field of Exports
HIGH REPUTATION OF COMPANY'S PRODUCTS Mr. Sydney S. Guy on Taxation
The thirty-seventh annual general meeting of Guy Motors, Ltd.,was held on December 19 at Wolverhampton. Mr. Sydney S. Guy, M.I.Mech.E., A.M.I.E.E., M.S.A:E. (Chairman), presided, and the following are extracts from his statement for the year ended June 30, 1952:—
The past financial year has been a succesful one in spite of the general shortage of materials, but we have been unable to obtain the full increased programme of production for which we budgeted.
Naturally, when particular supplies were offered we took them, even though the shortage of others caused the stock to be temporarily out of balance. The larger stock enabled us, eventually, to obtain a higher production than would otherwise have been the case and, in consequence of the increased turnover, the combined trading results have risen to approximately £253,000, an increase of some £33,000 compared with the prior year, but owing to the heavy and increased taxatiOn the combined net profit is only £71,224.
Greater Volume of Deliveries
The fact that deliveries of our vehicles are higher, both in numbers and turnover, during a period when the published production of British Commercial Vehicles as a whole showed a reduction, may be considered satisfactory, particularly bearing in mind the serious material Shortage from which we have suffered, in common with other manufacturers.
Although we have been affected by the strikes in some of our suppliers' works, I am pleased to report that once again we have had no labour troubles in our own organization, and I congratulate our Works Committee, the Trade Union Representatives and our employees on their effective co-operation.
It is also a matter for congratulation that for the year ending December last year your company had the highest percentage of exports amongst the British Heavy Commercial Vehicle manufacturers. I would here like to record appreciation of the manner in which Colonel Jerrett acted as Chairman during my four months' absence in South Africa and South America in the early months of this year and, together with my co-Directors, successfully carried on the affairs of the company during that time.
Saving in Cost of Operation It is pleasing to know that our vehicles have built up a very high reputation abroad, as well as at home, whether they are operating in the cold of Norway or in the heat of the tropics. The continued success is largely attributable to the fact that wherever we go we hear reports of the saving Guy vehicles effect in the cost of operation—in the case of the large passenger vehicles this amounts to approximately Id. per mile. As I have pointed out on previous occasions, this saving may sound of small importance, but when one considers that the average bus runs a minimum of -40,000 miles a year, this saving represents £166per vehicle per annum, and as the minimum life of a vehicle is from 10 to 15 years, one better appreciates the magnitude of the savings.
Important Orders Secured
During the year we have executed repeat orders (which are always a sign of satisfaction) for many important undertakings at home and abroad, the latter .including the Corporations of Madrid, Madras, liombay, Antwerp, Bergen, Penang, and at the present time we have contracts in hand for 200 " Otter " Diesel 10-ton articulated vehicles and 160 " Otter " Diesel lorries for the Road Haulage Executive (British Road Services). We also have on order many hundreds of vehicles for important British undertakings, including London Transport and Birmingham Corporation, and for export orders from the Hyderabad State Railway, Rhodesian State Railway, Bihar State Transport, Bombay, Travancore, and the Danish State Railways.
In spite of the difficulties with which we have had to contend, it is with pleasure that your Board recommend, for the sixteenth year in succession, the payment of a dividend of 15%. Incidentally, it may be of interest to you to be reminded that during the current financial year we enter upon our fortieth year of vehicle manufacture.
At the recent Commercial Vehicle Show we introduced our " Wolf " 2/3-ton Diesel vehicle, which had a very good reception. As a petrol vehicle the " Wolf" has been in production for many years; as a Diesel type we have had some in operation for four years in the Near and Far East, as well as in this country, and they are giving a very good account of themselves.
As more and more operators throughout the world become economy minded we feel that an increasing demand will be experienced for these smaller capacity Diesel vehicles, as well as for the larger class. In this connection, in dealing with some buyers—particularly from overseas—the commercial vehicle manufacturer frequently finds the first question about a vehicle is "What is the horse-power of the engine?" and the greatest importance appears to be attached to the highest horse-power; less importance is attached to economy.
Britain, who has much longer experience of road transport than most countries, appreciates more and more the importance of the cost of operation, and there is now, generally, a reversal of the previous tendency; instead of asking for larger horse-power the demand is for smaller, even at the sacrifice of a certain amount of road performance, so as to obtain increased economy in fuel consumption' and reduced tyre and brake wear.
Satisfactory Order Book
Your company is doing its share of rearmament work and has some important contracts in hand; production in these departments has not yet reached its peak, and will continue long beyond the current financial year.
The sale of your company's commercial vehicles not only shows an increase over the prior year, but for the first quarter of the current financial year this increasing tendency continues. We have a very satisfactory order book for these productions which justifies our confidence in the future without complacency. You will be interested to hear that a substantial extension to our machine shop is now in the course of erection.
As tong as we continue to maintain the highest standard of craftsmanship, obtain some relief from these ever rising costs and taxation, and continue to uphold the reputation of our vehicles for Long Life and Low Running Costs, I look forward to the future with complete confidence.
The Report and Accounts were adopted.