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26th April 1957, Page 25
26th April 1957
Page 25
Page 25, 26th April 1957 — F. PERKINS LIMITED
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(Manufacturers of High Quality Diesel Engines)

Excellent Results of Export Drive


The twenty-fifth annual general meeting of F. Perkins Limited will be held on May 13 at Peterborough.

The following is an extract from the statement by the Chairman, Mr. F. A. Perkins, which has been circulated with the report and accounts for the year ended 31st December, '1956: The Directors recommend a Dividend to Ordinary Shareholders of 10% for 1956.

I am again able to report an increase in turnover; which for the year was over £21,500,000, being 8% over 1955.

During the year there were increases in our own wages and also in the prices charged to us by our suppliers. It was found that the Company could no longer absorb these increased costs and for the first time since early 1952 we increased the prices of engines and spares. We were, however, only able to pass on to our customers a part of this additional cost and the nett profit for the year at £768,934 shows a decrease on 1955.

Last year I referred to the necessity to raise additional finance but up to the time of writing there has been nopropitious moment to carry out this operation. At the same time we have not delayed the progress of our plans and due to the low level at which we have maintained our stocks we have limited the bank overdraft to a reasonable figure.

During the year there has been expended £655,000 on capital assets, and at the end of the year the capital commitments stand at £601,000. These commitments cover the completion of the building operations and the equipment required to meet the present programme of the Company, but further expenditure has been planned for the near future.

OVERSEAS ACTIVITIES The progress of the Canadian Subsidiary continues and in order to provide engineering facilities to meet the most encouraging demand for engines from manufacturers in N. America further accommodation has been acquired. I feel sure that our policy of persevering with the development of this market will prove successful.

In Australia new niarketing arrangements have been developed during the year which. have enabled us to meet the growing demand for our engines, particularly in view of the increase in the Australian Home Market manufacturing programme. In South Africa the favourable trend reported last year continues.

I am happy to report that Messrs. Simpson & Co. Ltd. have made great strides in developing the manufacture of Perkins engines in India to meet the wishes of the Indian Government.

I am also able to report that satisfactory progress has continued in France with the local manufacture of Perkins engines, and during the year we have increased our investment in our Associated French Company by £24,500. COMPREHENSIVE TRAINING SCHEME believe you will be interested to know that, in order to play its part in achieving a higher level of technical skill, which is so essential to our national economy, your Company has established a comprehensive Training scheme in a separate Training School at Eastfield. In our Training schemes we provide individual attention tothe practical and theoretical requirements of the trainee, not only for his future in the Company, but for his future as a citizen and craftsman, professional engineer, or business man.

Our Service School which provides training in the maintenance of our engines, and is well known all over the world, has an attendance of over 3,000 students each year.

DEVELOPMENT DIFFICULTIES OVERCOME The difficulties experienced in the development of the R6 engine were overcome in 1956. The R6 Mark 2 was introduced and in subsequent service the unit has proved itself completely reliable and equal to the wellproven P6.

As is generally known, Vauxhall Motors have for many years employed our engines with success but growing demand has now caused them to manufacture their own diesel engine. It is, however, a particular pleasure for me to advise you that we have secured two large contracts with manufacturer customers which will more than offset our loss in this direction.

Therehas been a noticeable increase in the demand for the L4 engine in agricultural and industrial applications.

It is significant that there has again been an overall increase in the number of engines exported, to a figure of 74% of the production of the Company, as direct exports and also indirect, i.e., through manufacturers in this Country fitting our engines in their equipment. The increase is due in large part to exports direct from Peterborough to the customers overseas. This is the result of an intensive drive by.our Export Department.

FUTURE PROSPECTS I do not believe that any Chairman's Statement is complete unless some estimate of the future is given to the Shareholders. In recent years there has been little difficulty in doing this, but at this particular time this is not so easy to do in spite of the fact that we have complete faith in our products, our organisation and our ability to maintain our business against competition. We can see ahead of us further rising costs due to increases in wage rates and certain raw materials. To counteract this trend we are making a concentrated effort to re-design our products where economies in production are possible, and are continuously investigating new materials and processes. I hope to have illustrated to you the continuing and growing vitality of your Company. Whatever difficulties lie ahead will, I am sure, be surmounted and I gladly pay tribute to all employees, and to my colleagues on the Board to whom is due a very large share of our continued prosperity.

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