British Leyland Motor Corporation 1969 Report and Accounts
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BRITISH LEYLAND British Leyland Motor Corporation 1969 Report and Accounts mk1-performance-conversions.co.uk ~ I ,__:~, -.-==/@ I, ,_'~,, =-=··'®' mk1-performance-conversions.co.uk BRITISH LEYLAND British Leyland Motor Corporation Limited Report and Accounts for the year ended \ 30 September 1969 mk1-performance-conversions.co.uk BY APPOINTMENT TO THE QUEEN'S AWARD HER MAJESTY THE QUEEN TO INDUSTRY 1966 MOTOR VEHICLE MANUFACTURERS BRITISH LEYLAND MOTOR CORPORATION LIMITED Report and Accounts for the year ended 30 September 1969 CONTENTS page Notice of Meeting 3 Directors, etc. 4 Report of the Directors 5-8 Consolidated Profit and Loss Account 9 Notes on the Consolidated Profit and Loss Account . 10 -11 Consolidated Balance Sheet 12 Parent Company Balance Sheet 13 Notes on the Balance Sheets 14 -18 Report of the Auditors 18 Chairman's Statement 19 - 25 Subsidiary Companies 26-29 Trade Investments 30- 31 mk1-performance-conversions.co.uk page two BRITISH LEYLAND MOTOR CORPORATION LIMITED Notice of Meeting NOTICE IS HEREBY GIVEN that the SECOND ANNUAL GENERAL MEETING of the Company will be held at The Europa Hotel, Grosvenor Square, London on Wednesday, 25 February 1970, at 12 noon to transact the following business:- Resolutions will be proposed:- 1. To approve and adopt the Accounts for the year ended 30 September 1969, together with the Reports of the Directors and Auditors thereon and other documents required to be annexed to the Accounts. (Resolution No. 1). 2. To declare a final dividend of 4.35d. per share on the Ordinary Share Capital of the Company, such dividend to be paid on 31 March 1970, to the holders of such Ordinary Share Capital recorded in the Register on 19 February 1970. (Resolution No. 2). 3. To re-elect the following Directors who retire by rotation in accordance with Article 85: Dr. A. Fogg (Resolution No. 3(a) ) Mr. R. A. Stormonth-Darling (Resolution No. 3(b) ) 4. The following Directors who have been appointed by the Board since the last Annual General Meeting will be proposed for re-election in accordance with Article 91 :- Sir George Farmer (Resolution No. 4(a) ) Mr. J. D. Slater (Resolution No. 4(b) ) 5. To authorise the Directors to fix the remuneration of the Auditors. 6. To transact such other business as may be transacted at an Annual General Meeting. Any Member who is entitled to attend and vote at this Meeting may appoint a proxy or proxies to attend and on a poll, to vote instead of him. A proxy need not be a member of the Company. Registered Office, By Order of the Board, Berkeley Square House, Berkeley Square, T. N. ADDISON, LONDON, WIX 6DL. 30 January 1970 Secretary 1. Forms of proxy to be valid must reach the Transfer Office of the Company, 49 Berkeley Square, London WIX 6DL not less than 48 hours before the time appointed for the holding of the Meeting. 2. The transfer books of the Company and the Register of Members will be closed on 19 February 1970. 3. Although this Annual Report is sent to Loan Stockholders, only holders of Ordinary Shares are entitled to attend or vote at this meeting. 4. In accordance with the requirements of The Stock Exchange, London, there will be available for inspection by Members at the Registered Office of the Company during usual business hours from the date of this notice and mk1-performance-conversions.co.ukat The Europa Hotel for fifteen minutes prior to and until the conclusion of the Annual General Meeting: (a) Particulars of transactions of Directors and oftheirfamily interests in Shares or Debentures of the Company and its Subsidiaries and (b) Copies or particulars of contracts of service (unless expiring or determinable by the employing Company without payment of compensation within one year) of Directors with the Company or with any of its Subsidiaries. page three BRITISH LEYLAND MOTOR CORPORATION LIMITED PRESIDENT Sir George Harriman, C.B.E. DIRECTORS Lord Stokes, T.D., D.L., C.Eng., LLD., D.Tech., F.I.Mech.E. (Chairman and Managing Director) Sir William Lyons, F.R.S.A. (Deputy Chairman) L. G. Whyte, F.F.A. (Deputy Chairman) J . H. Plane (Deputy Managing Director) G. H. Turnbull, B.Sc., C.Eng., F.I .Mech.E., M.I.P.E. (Deputy Managing Director) J. N. R. Barber Sir George Farmer, F.C.A., J.Dip.M.A. Dr. A. Fogg, D.Sc., C.Eng., F.1.Mech.E. R. J. Lucas, F.C.I.S. J. D. Slater, F.C.A. R. A. Stormonth-Darling SECRET ARY T. N. Addison BANKERS Barclays Bank Limited Lloyds Bank Limited Midland Bank Limited National Westminster Bank Limited AUDITORS Cooper Brothers & Co. REGISTERED OFFICE Berkeley Square House, Berkeley Square, mk1-performance-conversions.co.ukLondon, WIX 6DL REGISTRATION DEPARTMENT 49 Berkeley Square, London, WIX 6DL pa g e f o ur BRITISH LEYLAND MOTOR CORPORATION LIMITED Report ef the Directors The Directors have pleasure in presenting the second Report and Accounts of the Company for the year ended 30 September 1969. PRINCIPAL ACTIVITIES The Corporation at home and overseas is engaged in the automotive industry, producing an extensive range of vehicles from heavy commercial trucks and buses to private cars. It also supplies automotive, industrial and marine engines, carburettors, axles and transmission units to other manufacturers both at home and overseas. Other activities include the manufacture of construction equipment, commercial refrigeration products, and material handling equipment. Particulars of Corporation Companies are shown on pages 26 to 29. ACQUISITIONS: HOME During the year Prestcold Limited acquired at a cost of £3,736,000 the whole of the Issued Share Capital of L. Sterne and Company Limited. ACQUISITIONS: OVERSEAS British Leyland Motor Corporation of Australia Pty. Limited acquired a 70% interest in Pressed Metal Corporation Limited which, with the 30% already held, makes this Company a wholly-owned Subsidiary. A Subsidiary Company has been formed in Chile in which the Corporation has a 52.7% interest. The minority interest in Leyland-DAB A /S has been acquired and that Company is now wholly-owned. DISPOSALS The vending machine activity of Fisholow Products Limited was sold early in the year, followed by the sale of the Company including its material handling operation. TRADE INVESTMENTS: HOME During the year arrangements have been made to take a 50% interest in Leyland National Company Limited and to increase the investment in Bristol Commercial Vehicles Limited and Eastern Coachworks Limited to 50%. TRADE INVESTMENTS: OVERSEAS A 50% interest has been acquired in the Spanish Company, Nueva Montana Quijano S.A. at a cost of approximately £9 million. The agreement has been concluded on the formation of a new Company in Ceylon initially to produce heavy trucks. 60% of the Shares will be held by the Ceylon Government and 40% by the Corporation (20% in the U.K. and 20% by Ashok Leyland Limited, the Indian Subsidiary). LOAN CAPITAL AND LONG TERM LOANS mk1-performance-conversions.co.ukThe balance of the subordinated Loan Capital provided by the Industrial Reorganisation Corporation, amounting to £10 million, was taken up in April 1969. 60 million Swiss Francs were raised during the year by means of an Unsecured Loan, with interest at 5t% p.a., and due for redemption at par in six equal instalments in the years 1979 to 1984 inclusive. page five BRITISH LEYLAND MOTOR CORPORATION LIMITED Report ef the Directors (Continued) EMPLOYEES The weekly average number of persons employed by Corporation Companies during the year ended 30 September 1969, and the aggregate remuneration paid in respect of this year was:- Number of Aggregate Employees Remuneration £'000 United Kingdom 174,514 236,049 Overseas 21,876 23,949 196,390 259,998 SALES Invoiced sales of the Corporation for the year ended 30 September 1969, were £970 million, analysed over activities as follows:- £ million % Automotive products . 929 96 Construction equipment, commercial refrigeration, material handling and other activities . 41 4 970 100 These sales exclude inter-Corporation transactions and are spread world wide as follows:- £ million % United Kingdom 494 51 Europe 140 14 North America . 98 10 Africa 82 8 Australasia . 70 7 Near East 31 3 India and Ceylon 20 2 Far East . 15 2 South and Central America . 15 2 Other 5 1 mk1-performance-conversions.co.uk970 100 Direct exports from the United Kingdom, including sales to overseas Subsidiaries, amounted to £322 million. page six BRITISH LEYLAND MOTOR CORPORATION LIMITED Report ef the Directors (Continued) TRADING PROFIT The Trading Profit before Taxation was £40.418 million as shown in the Consolidated Profit and Loss Account on page 9. The allocation of this Profit between principal activities is as follows:- £ million % Automotive products • 38.547 95 Construction equipment, commercial refrigeration, material handling and other activities 1.871 5 40.418 100 DIVIDENDS The Directors recommend a final Dividend of4.35d. per Share for the year ended 30 September 1969 (1968 4.35d.), payable less tax on 31 March 1970, which together with the interim Dividend of 2.25d. per Share already paid on 29 August 1969 (1968 2.25d.), makes 6.6d. per Share for the year or a rate of 11% (1968 - 11%), FIXED ASSETS The movement in Fixed Assets during the year is set out in the Notes on the Balance Sheets on page 14. INTERESTS IN LAND The market value of the Corporation's interests in land cannot be ascertained without obtaining a revaluation of all of the land and the buildings thereon owned by Corporation Companies. The Directors consider that although such a revaluation would show the market value of the land and buildings on a going concern basis to be in excess of book value, this excess would not be sufficiently significant in the context of Corporation operations to justify the expense of revaluation, particularly as major disposals are not envisaged.