SIMMS MOTOR UNITS LIMITED
Page 25
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SUMMARY OF MR. G. E. LIARDET'S STATEMENT FOR YEAR ENDED 31st DECEMBER, 1955
The Annual General Meeting of Simms Motor Units Ltd., was held on July 27th, 1956, at the Company's Works. The Chairman, Mr. G. E. Liardet, presided and, in the course of his speech said :— "Our overall financial position has been strengthened still further and, while the net profit after tax is 5% less than 1954, this is consistent with the maintenance of price levels against the rising cost of wages and materials. During 1955 our turnover showed a substantial increase for both Home and Overseas Markets.
"During the year we maintained our technical leadership ; we have done much to build up our engineering organisations and facilities. On 1st January, 1956 Mr. C. H. Bradbury, M.I.C.E., M.I.Mech.E., M.I.M.E., joined us as Chief Technical Executive responsible for the engineering activities of the Simms Group. Mr. Bradbury has wide experience in diesel engine design and before joining us was Technical Director of a famous eivine manufacturing company.
"There is no doubt that in respect of perforMance and quality, Simms products arc acknowledged throughout the world as second to none.
"Although we have every intention of expanding our business with the Motor Industry, steps have also been taken to enter other markets to safeguard further the future of our Company. We have therefore acquired a number of smaller Companies, thus spreading the range of our products over a much wider field."
The subsidiaries in the Simms Group are now : Horstman Ltd. Productive capacity now fully employed. Work has begun on the new factory although it will not be ready for occupation before the end of 1956.
Hada & Horstmann Ltd. Acquired in 1955. Produces counterpoise adjustable lamps for industrial and domestic purposes.
Ciearex Products Ltd. Fabricators of thermo-plastic sheeting for motor vehicles, television, radio and refrigerators, domestic cups and glasses and many other plastic mouldings. Considerable expansion of activity is foreseen.
Mono-Cam Ltd. Since the end of 1955 Simms have acquired Mono-Cam Ltd., which has developed a novel type of fuel injection pump for diesel engines. The staff and premises have been taken over and form Simms' forward Research and Development Section.
R. F. Landon & Partners. Negotiations are in progress to purchase the manufacturing business of R. F. Landon & Partners who make a range of burners and other devices for oil-firing boilers under the trade name of " Kingsway ".
Simplus Products Ltd. This Company has been formed to exploit certain lines of domestic appliances, but it will not be in operation for several months.
In the course of his review of the Accounts, Mr. Liardet said:— " Group surplus before taxation amounts to £1,038,725. After providing for taxation, £523,525, and pre-acquisition profits and losses transferred to capital reserve, £2,949, the sum available to Shareholders of Simms amounts to £512,251 compared with £544,249 in 1954. The addition of the amount brought forward from 1954 makes a total of £780,110. Out of this sum your Directors have paid the Preference Dividend and set aside £214,250 to General Reserves and £100,000 to Plant Replacement Reserve, leaving a balance of £461,547. By placing these large sums to Reserve, your business is able to advance and to some extent resist inflationary tendencies. Your Directors recommend there should be paid a Dividend of is. 9d. on each Ordinary share for the year 1955, leaving a balance to be carried forward into 1956 of £359,664."
Mr. Liardet drew attention to the grave inroads made by taxation charges, and commented : "During the year your capital has been used to pay five times as much to the State in taxation as you have received in dividend ".
Mr. Liardet did not wish to underestimate the difficulties of the future. With rising costs and the credit squeeze the Group cannot, on a short term view, look to increased turnover to enhance the smaller profit margin which appears inevitable this year. On a long view, Mr. Liardet was more optimistic. "Great benefit will undoubtedly arise" he said, "from the money we are spending on large scale technical development, and in due course our activities will expand into other industries through our Subsidiary Companies ".