BLMC net profits up and new models on the way
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• British Leyland has pushed its tax-paid profit for the year ended September 30 1972 to £21.1m (1971: £18.4m) and, says chairman Lord Stokes in the annual report published on Tuesday, has some new trucks, buses and cars in the fianl stages of development which he believes will be particularly successful not only in the UK but in Europe and overseas markets, including North America.
Profit before tax amounted to £31.9m, compared with last year's figure of 32.4m; a final dividend is recommended which will make the total for the year 2.0p per share, the same per share as for 1970/71 before the rights issue. Net liquid assets improved by £105m.
Sales by units totalled 1,127,000 — including 180,000 trucks, buses, vans and other commercial vehicles.
Lord Stokes says that there is no doubt that in the present conditions it is the labour situation more than any other single factor which affects British Leylantl's current results and future potential.
Better cash position "Now that our major rationalization plans are coming to fruition and our cash position is so much better," adds Lord Stokes, "we intend to invest substantially more money to ensure our long-term growth and future success, particularly in the way of new facilities and a higher level of research and development effort."
Work is continuing on the BLMC gas turbine and prototype trucks are in operational service.
The momentum of profitability during the latter part of the year under review has been maintained in the first quarter of the new financial year.
In the report's review of operations, the truck and bus division says that major problems remain the uncertainty over gvw limits between the UK and Europe, and the general harmonization of regulations for noise, pollution and safety.
British Leyland International adds that as BLMC is already well established in Europe, Britain's entry into the EE "merely served to justify our own European policies".