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Summer 1973 Wright Ahead I the Head Wrightson Magazine

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Summer 1973 Wright Ahead I the Head Wrightson Magazine Toe Summer 1973 Wright ahead I the Head Wrightson magazine •••••••••••••••••• •••••••••• ••••• •••••••••• •••••• APPOINT• MENTS Grosvenor Steel HW Foundries Ltd HW Teesdale Ltd Fabrications Ltd Mr JV Henderson has been MrW Fortune and Mr A appointed Managing Director of Stoddard have both been the Steelcast Division of Head appointed Directors of Head Wrightson Foundries Ltd. Wrightson Teesdale Ltd. Mr JE Fuller has been appointed Production Director of the Iron Founding Division of Head Wrightson Foundries Ltd. The HW Machine Co Ltd HW Ef Co Ltd Mr El Ford has been appointed Managing Director of Grosvenor Steel Fabrications Ltd. Mr GT Kirsopp has been appointed Sales Director and MrWH McKew has been appointed Works Director. Mr AS Anderson has been Mr DP Jowett has been appointed cover photo: Whitby on the North appointed a Director of The Head Assistant Secretary of Head Yorkshire coast; a view across the harbour Wrightson Machine Co Ltd. Wrightson £t Co Ltd. to St Hilda's Church on the cliffs. 1HE ANNUAL MEEW Results of the group for the year ended 31 January 1973 were as follows: turnover profit The Annual General Meeting of before tax Head Wrightson & Co Ltd was held £000 £000 at Teesdale Works on Thursday 5 July 1 973. The following are UK Companies extracts from the Annual Report. contracting 14,203 318 Results manufacturing 9,401 911 9,356 The Head Wrightson Group of supply (12) 2,587 Companies had a reasonably Overseas companies 72 good year in 1 972-73. Group 35,547 trading profit rose from Less inter-company sales 2,491 £1,102,000to £1.456.000. 33,056 1,289 Group profit before tax rose from Other income/ess expenditure 167 £1.083.000 to £1,350,000 whilst Trading profit 1,456 profit after tax rose from Interest paid (112) £617,000 to £998,000. Investment income 6 The year ended on 31 January Profit before tax 1,350 1973 was a year of consolidation. Tax (352) Nevertheless I consider the results 998 fully demonstrate the underlying strength of your Company and Dividends 359 indicate that we are justifiably Transfer to reserves £639 confident about the future. It is also worth commenting that your Company finished 1972-73 financially stronger than it was at the beginning. Development of the company During the year we incurred FUNDS IN 1972/73 £871,000 of capital expenditure and at the end of the year we had In the twelve months ended 31 January 1973 the group capital expenditure commitments employed an average of 4,130 persons. of £1,286,000. These figures £ compare with figures for the On average, each person generated sales of 8,004 previous year of £545,000 and of To generate these sales we had to spend : £370,000 respectively. on buy-outs, materials and services 5,559 We are now in production at 2,445 Stockton Precision Forge where each employee received an average wage or salary of 1,676 we have installed the Rotaform together with benefits, including pension costs forging machine. Preliminary and other benefits of 246 1,922 results are so encouraging that we 523 intend to double the capacity of we spent on taxes : this installation. to the government on the group's net income 60 Secondly, the development of our deducted from dividends paid to shareholders 36 steel stockholding and processing to local authorities in the form of rates 58 business under the leadership of 154 Alfred Simpson Limited of and paid to shareholders In dividends 72 226 Manchester is going well. leaving 297 Simpsons' new warehouse and in addition we borrowed from the bank 432 processing unit in Swinton is 729 proceeding to programme and it will be occupied in the late autumn and this wasapplied: of this year. We also have plans in increasing the group's investments in financing to expand the warehousing and current business by way of stocks and amounts processing capacity of the owed by customers 518 Bramall and Wax Companies in and in purchasing new equipment 211 Sheffield. During the year we 729 opened a new depot on Teesside In addition at 31 January 1973 the directors have which is trading inthe carbon authorised the purchase of further new equipment steels needed in the North East as being an average of £31 5 for each person and totalling well as in Simpsons' main £1-3million. continued on page 2 1 business of stainless and alloy supply specialist equipment which is and Wax Companies has gone so steels, stainless fasteners and needed and will act as a sub• well and with so few apparent bright bar. Towards the end of the contractor to Davy International difficulties for the people working year we entered into an agreement in appropriate circumstances for forthose companies. to buy the business of a private that specialist equipment company in the London area which We expect to find that this Prospects also trades in stainless steel agreement will benefit both For the first year in a long time the stockholding and processing This Companies and that it will also economy is growing and growing business which joined Head improve the British export in a way which looks as if it will Wrightson in February of this year performance in steelworks plant. give rise to increased investment trades as Renown Simpson Steels. and increased heavy engineering The return on all this expenditure Summary orders. It is important to emphasise promises to be highly satisfactory The last two years have seen a that this investment at the heavy in 1973-74. significant shift in the emphasis of end is still patchy and has not yet Third, we have bought a new your Company's activities. We have worked its way through to all our riverside site on the Tees in order widened our interest in the lighter workshops, some of which are to improve our capacity to fabricate general engineering market and significantly underloaded. for the North Sea Oil companies. limited our involvement in the However, businessis very much We have long had slipways into major turnkey plant contracting better in the Group's subsidiaries the River Tees at Thornaby. Owing market. Apart from adding than it has been for many months to the closure of the municipal stockholding to our interests we past. wharf at Stockton and the plans have been developing our range If the Government can keep the for the new A1 9 bridge it has of proprietary machinery. economy on its present course then proved uneconomic to put the Our internal Research and by the end of this year the Company large fabrications required by the Development effort has been will be turning in good results. In the oil companies into the River Tees directed to support this policy. For meanwhile the first quarter of this at Thornaby, mainly because of the example, we have developed and year has been better than the same costs associated with dredging. are now marketing a novel type of period for last year and we expect This new site is adjacent to our spray granuiator which has wide this year as a whole to show a existing site in Middlesbrough application in the chemical and marked improvement on last year. occupied by The Head fertiliser industry as well as potential 1974 should, on the evidence of Wrightson Machine Company in any situation where the material today, show a still greater and from it we have successfully to be dried is finely divided and improvement. shipped a major fabrication for the difficult to handle both before and British Steel Corporation. This afterdrying. This machine development will place Head produces a clean granular material. Wrightson in a good position to We are supplying our first two take further substantial contracts systems and have high hopes of for North Sea Oil fabrications. We repeat orders. This development is PRESS have a significant amount of this typical of the Head Wrightson class of work in hand. Our welding approach to the future and illustrates expertise is again proving to be a the Company's ability to generate COMMENT major asset. internal growth. Our results were widely reported in Finally, we have continued and are We are also concentrating our efforts the press and the following is continuing to invest in machine tools on sinter plant technology, process reprinted from the 'Financial and equipment in all our workshops design, mechanical design and World': and foundries. It is only possible to process control, in support of our remain competitive by undertaking long record of successful sinter Head Wrightson: expensive investment in modern plants supplied to the iron and steel heading in the right direction tools. indusiryof the world. For a company which is firmly It will be seen that apart from the entrenched in what is basically policy of growth by acquisition that Staff a cyclical field. Head Wrightson was outlined last year we are also At the end of last year we started has achieved a remarkably smooth putting a major proportion of our selective recruiting over and above profit record over the last five resources behind internal growth. the normal intake of apprentices and trainees. This latter recruitment years. Once again, it has jacked up Marketing agreement with we have always maintained at a profits by a satisfactory 25%~ Davy International consistent level. We are now an improvement which has not During the year we negotiated and recruiting more staff and expect been fully appreciated by the subsequently agreed with Davy that this trend will continue market, when the share price is International a rearrangement of although there is also considerable 68{p against 83p in 1972.
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