Record Profit Earned in T.H.C.'s First Year
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RESERVATIONS ABOUT BUS COMPANIES' FUTURE By The Editor
THERE is always considerable interest in the first year's working of any new venture, and at least doubly so when that " venture " is as socially and politically as big as is the Transport Holding Company. Published yesterday, the report and accounts for the first year's working of the T.H.C. (the year ended December 31 last) are encouraging and, with comparatively minor exceptions, praiseworthy.
In case anyone is in any doubt about the size of the T.H.C., let it now be recorded that its road haulage assets are worth £49 m. and employ 35.000 people. HS road passenger interests are said to be worth £97 m. and to employ 80,000 people. That sentence is deliberately phrased because there is a strong suspicion in my mind that the T.H.C. is including its proportionate share of the B.E.T. group in these nassenger transport figures. Now, whilst strictly accurate, this is a practice which I strongly counsel the T.H.C. to drop. Please, please, go back to the old B.T.C. report style of separating Provincial and Scottish (the true T.H.C. companies) from the B.E.T. shareholdings. After all, the T.H.C. is not completely responsible for its shareholder earnings in the B.E.T. and should not, therefore, include a proportion of B.E.T. assets in its own figures.
That is one of those comparatively minor matters I mentioned. There can be nothing but praise to everybody concerned for the thumping great £13.75 m. profit figure which is, indeed, a record for the undertakings concerned regardless of the various flags under which they have sailed.
Here let me make the second of my "comparatively minor" complaints. On occasions one was somewhat bewildered by the complexity and the multitude of statistics presented each year by the nowdefunct B.T.C. That charge certainly cannot be levied at the Holding Company. There is an almost complete absence of statistics now. I feel that a reasonable return along the B.T.C. report's path would be much more acceptable. After all, say what they will, in the last resort the T.H.C. functions as a public corporation by virtue of the or:gin of its capital; it must expect to produce more information than a privately owned concern.
Anyway, back to the basic matter—
that £13-75 m. profit. In the end, the T.H.C. was allowed by Mr. Marples to keep a mere £500,000. I agree with the T.H.C. in their suggestion that it is not an adequate figure. First of all, the Minister received £3.8 m. as interest on the commencing capital debt. Then the Chancellor of the Exchequer had another £3.6 m. in taxation. After all this, Mr. Marples palmed a further £3.3 m. Within reason (which is all -it asks) the T.H.C. should be able to retain sufficient of its profits to finance replacements, and so on.
British Road Services returned a magnificent profit of £4.7 m., compared with £3.5 m. in 1962, and boosted their tonnage carried by 1.1 m. tons to l73 m. It was their best tonnage figure since 1956. The profit figure was the highest since 1955. I think it ranks as a fine achievement on the part of managing director T. G. Gibb and his colleagues.
The general haulage activities of British Road Services Ltd. showed an increase in gross receipts -of some £2-7 m. and in net profits of some £0.6 m. It gross receipts in 1963 were £38-3 m, an the profits £1-7 m. The Ti-IC. report which describes general haulage (Harolc Wilson, please note) as "a rather difficul and uncertain field ". speaks of increasin: the replacement of over-age vehicle "reducing the fleet somewhat in till process but improving the utilization ".
B.R.S. (Parcels) Ltd. returned profits o £2.1 m., about £0-6 rn. higher than 1962 but their gross receipts of £17.3 m. wen only £1-1 m. higher than 1962.
rickfords Ltd. remained almost static gross receipts, at some £9-5 m., wen £54,000 up on 1962. Profits 4851,000 were £3.000 higher. Removals showec an improvement, said the T.H.C., bu tank and heavy haulage declined. OMh meat haulage remained unprofitable (al £86,000 trading loss), and it was beim "contracted, re-shaped and re-equipped" In some fairly general remarks abou the outlook for road haulage, the T.H.0 comes to the conclusion that a growirn market can be exnected for traffic; but i will be absorbed by increased utilizatiot rather than a growth in .the number o vehicles. The overall impression is on of reasonable confidence, with somi reservations about politics, licensing am British Railways.
On the passenger side, the Scottisl Omnibuses group earned £0.75 m. mon in gross receipts, but profits declinec marginally to £2-8 m.—a drop of £75,000 However, the T.H.C. expects "for a
least some time ahead" to maintair financial stability, and even improvi results.
For some uncertain reason, the Titlint group's finances (or such figures as an disclosed) are split into six regions. TN total represents—like the Scottish buses— an increase in gross receipts from £46.4 m in 1962 to £48 m. last year; but c marginal drop in Profits (a shade uncle! £4 m. in 1963) of £4,000. These, and thc Scottish, figures are a sobering reflectior on life in the bus world. However, thc T.H.C. says it is aiming to improve tin Tilling companies' position in the flex year or two.
As with haulage, the T.H.C. make! some rather general observations unde: the "outlook" heading. The most sig
nificant remark is that there may be k decline in traffics and profits; but i
should be slow enough (especially ii aided by tax relief here and there) It delay the onset of real financial difficult, for quite a number of years ahead Another rather sobering remark; bu undoubtedly a true one.
The ex-B.T.C. manufacturing corn panics showed a £15,000 profit. Bristo Commercial Vehicles Ltd. produced 63( bus chassis in 1963 (probable capacity 1,000), 100 goods vehicles and 70 trailers The report makes a plea for some way tt be found to "widen the commercia approach" of its manufacturing under takings.