GUY MOTORS LIMITED.
Page 51
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CHAIRMAN'S REPORT.
In my last annual report I said that our main problems were of supplies of material and electricity, and during the first eight months of the financial year under review the difficulties continued, Culminating in the fuel crisis in February. This fact should be borne in mind when considering the accounts, as it explains why in the first half of the year the results justified a recovery of E.P.T. To finance the increased stock, new machinery, and extensions to the works for the manufacture of bodies, an increase in the capital was made in May last. The premium obtained on the shares, less the cost of the issue, has been placed to general reserve, which you will note exceeds the issued capital.
Although during the year we have had some unexpected and appreciable expenditure, particularly that relating to the payment of our employees during the two weeks when the works were closed through the cessation of electrical supply, we have not drawn on the contingency reserve.
We have installed a power station which for some months has been taking part of the factory load, and 'we hope that no curtailment in production will occur through shortage of electricity during the coming winter when cuts in the public supply occur. In the design and development of the new vehicles we have not yet completed our post-war range and are leaving intact the previous provision made for this purpose. Considerable expenditure has been made on repairs deferred from the war period, a larger amount, in fact, than the 122,500 reserved on this account. But as further expenditure is required under this head, it is considered desirable to retain £10,000 of this reserve.
Much new plant was installed in the 1945-6 year but only came into production towards the end of that financial period.
Having overcome the effects of the Fuel Crisis and its repercussions. an increase in production took place, and this, coupled with certain economies in overhead charges, las given the result which I am sure you will agree is satisfactory.
The Directors recommend the payment of a dividend of 15 per cent. on the Ordinary Stock, which is at the same rate as the previous 11 years.
During the five months of the current financial year the output has continued to increase and I am pleased to say that no loss of production has occurred with the advent of the 44-hour five-day week, and we know, as do our men, that higher production would be obtained for the same hours if we were assured of regular supplies of material in accordance with the programme planned so long ago.
Here I would like to thank those many suppliers who have served us faithfully and well during these difficult times; also to acknowledge with gratitude the understanding and forbearance displayed by our many customers and agents during the inevitable delays which sometimes occur in delivery of vehicles.
We have on hand a large number of orders for passenger, and goods vehicles from many important concerns both at home and abroad, and some of the contracts cover our customers' requirements up to three years ahead. Our exports for the past 12 months have averaged over 41 per cent. and we have supplied to 15 countries, from all of which we are receiving repeat orders. This is the best proof of the satisfactory performance of our vehicles, even under the most exacting conditions. We are now busily engaged in endeavouring to increase our exports still further and we look forward to the early resumption of trade with those countries where international difficulties have recently stopped their imports.
There is an accumulation of eight years' normal replacement of vehicles largely unsatisfied. Now that the production for the home market is to be limited in 1948 so as to increase the shipments for export, it would appear that it will be years before the supply will meet the demand for the home market.
It is a little over a third of a century since this Company's activities cominenced. We have some 80 people who have
been with us twenty-five years and over, 95 have served twenty to twenty-five years, and 160 ten to twenty years. To all these and to the other employees—over 1,000—without whose loyal co-operation we could not have achieved the results, on behalf of the Shareholders, Directors and myself. I say " Thank you very much."
We are a " happy ship," as indeed are the very large majority of industrial undertakings, and in the main they have the same crews as were complimented for their great contribution towards winning the war. We are, however, greatly concerned with the persistent references made in certain quarters to the "gulf ', between management and workers when, indeed, no such gulf exists. Too often they are made by people whose only knowledge appears to have been gained from reading some unfortunate part of industrial history of 50 to 100 years ago.
Industry and commerce made this country great and can, and will, restore its prosperity. It may be of interest to remember that the Amalgamated Society of Engineers, founded in 1851, one of the,earliest Trade Unions, had for their motto "United we stand, divided we fall." When they were strengthened in 1921 and became the A.E.U.for whose members and management I have the highest regard—they adopted the device "All men are brethren." I commend these slogans to the notice of the party politicians. Nowadays politicians and others, without industrial knowledge or training, much less managerial experience, endeavour to dictate in detail how industry should be run. They demand the greatest production but at the same time, for reasons best known to themselves, sow seeds of class dissension, which inevitably undermine efficiency. This is neither sensible nor democratic. It stints rather than stimulates production, and I feel it is high time that Industry raised its voice in the interests of this Nation, which has been brought to such a perilous position, This Company comprises some 1,500 employees (of which 1, too, am one), who are the people who really do plan and produce the goods, and some 8,000 Shareholders (including some employees), who find the capital, without which we could not even commence to function. We are not an unwieldy, sout-less community, neither are we subsidized by the taxpayer, and not one of us employees imagines this business to be a philanthropic institution, I have made an interesting comparison of the amount by which the various people concerned in our business have benefited from the year's work.—
Pieceworkers and Staff drew, over and £ above their normal rates of pay . 84,899 The Government will collect in Taxes, including P.A.Y.E. 50,216 The Shareholders will receive net 22,262 And the Company will retain, for reinvest ment in the business . 22,637
I make bold to say the management and men of this Company, like many others brought up in industry, knowing their work and responsibility and in consequence having a mutual feeling of confidence, understanding and trust, do not indulge in strikes or lock-outs, and, I trust, no restrictive practices. We are used to giving and receiving a square deal without fear or favour, and industrialists are not hoping for mass unemployment (which goes with a slump of orders) to reduce wages, but are striving for increased efficiency and production to reduce costs; and reduce them we must if we are to retain and increase the export business.
What we all desire is to be left alone to get on with the job we understand, for the love of work, the fun of the game, the hope of a reward and in the interest of the Company and the Country. In our own way we are one of the many examples of private enterprise, of which we 1,500 are all justly proud and, what is more, we are British.
The great majority of us are tired of all this political party piffle. I have great faith in the inherent common sense of the average Britisher and that, left alone, he will in his own way and time restore us to conditions of peace and plenty. In conclusion, I am very pleased to welcome to the Board Mr. G. P. Roberts, who has had wide engineering experience and who, since his return from the Army, has been our Research and Development Engineer. He has been appointed Technical Director, and this appointment you are asked to confirm.
Fallings Park, SYDNEY S. GUY,
Wolverhampton. Chairman.
December 11, 1947.