SIMMS MOTOR UNITS LIMITED
Page 19
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SUMMARY OF MR. G. E. LIARDET'S STATEMENT FOR YEAR ENDED 31st DECEMBER, 1956
The Annual General Meeting of Simms Motor Units Limited was held on July 26th, 1957, at the Company's Works. Mr. G. E. Liardet (Chairman) presided and, in the course of his speech, said:— " I do not think you will be unduly disappointed with the results, particularly if you remember my comments at this time last year that the costs of labour, material and all services were rising. Following these difficulties we were faced with the recession in the Vehicle Industry and 'then the Suez crisis. I feel it would be your wish for me to thank all Employees for the loyalty and sustained effort which has enabled us to achieve the results reported in these Accounts.
"Although the Group Turnover, excluding new acquisitions, shows an increase over 1955, the Trading Surplus has declined by £156,869 to a total of £1,040,547. This is due to rising costs of material and labour absorbed by the Company and the effect of credit and fuel oil restrictions upon the trading of certain Subsidiary Companies.
After providing for Taxation and a transfer to Capital Reserve the balance of Profit available is £401,583 compared with £512,251 in 1955. General Reserve receives a further £150,000 and Plant Replacement Reserve an additional . £100,000. Your Directors recommend an Ordinary Dividend of 1/9d. per share which, if approved, will leave a balance to be carried forward of £392,788.
"The re-equipment of the factory at Finchley has continued and some progress has been made with similar work at the Branches and Subsidiary Companies.
"Unless there is continuous replacement of plant with modern equipment our productive industries will be unable to meet foreign competition, and it is regrettable and very disappointing that in the last Budget concessions were not made to industry in general for this purpose. The present rate of Company taxation makes it increasingly difficult to effect such replacement from, retained profits unless these bear a high ratio to turnover, in which case our products are again uncompetitive in overseas markets. It is vital that industry, and particularly export industry, shall retain sufficient profit for plant replacement.
A YEAR OF PROGRESS.
" During the year 1956 our Engineering Division was expanded in personnel, facilities and area. A number of new products are being developed and, while considerable expenditure is involved, we are confident that as a longterm measure it is fully justified. It is encouraging to find that we receive an increasing number of requests to solve problems relating to internal combustion engines and turbines.
Our manufacturing Plant has been enlarged and improved and we estimate there are over 500,000 sets of fuel injection equipment in service on various engines in many parts of the world.
"Towards the end of the year we added two new _projects to our range. The first is a Turbo-Charger for internal combustion engines, for which we concluded a licence with Geraetebau Eberspaecher O.H.G.of Esslingen, Western Germany ; the second project is a Hand Starter for diesel engines, the designs and patents for which we acquired from Aircraft Steel Structures.
"I am pleased to report that our Export turnover reached a new high level, and our Home Branches performed-well and made a very substantial contribution to Profit. You may be interested to know that during the year we set up new Departments at most of our Home Branches to provide a trade Repair service for all makes and types of motorcar electrical equipment, as distinct from our previous activities, which were almost entirely connected with commercial vehicles. The response to Simms' standards of quality, price and service was immediate. Our Repair organisation is already one of the largest in the country and we look forward t6 a big increase in this business.
"We are pursuing the policy of spreading the range of our products over a much wider field and we have accordingly added the Industrial Fan & Heater Company of Birmingham to the Simms Group of Companies, in addition to Mono-Cam Ltd. and R. F. Landon & Partners Ltd. to which I referred last year.
"lit December we acquired by means of an exchange of Shares one-third of the issued Share capital of Aircraft Steel Structures Limited.
FUTURE.
" Unfortunately the future is somewhat obscure, for though your Company is in good heart, with an able and energetic team ready to seize every possible opportunity, yet if Trade Unions continue to insist on wages rising out of proportion to productivity and the Government continue to spend at a rate which requires penal taxation at a level which curbs initiative and depletes the resources of industry, then your Company is bound to be influenced by the national trend."