Evening star., 1954-01-10
ADVERTISEMENT.
Hawker Siddeley
Group Ltd.

reviews status of British air powe,.
calls for bolder research policy.
The EIGHTEENTH ANNUAL
GENERAL MEETING of the Haw-
ker Siddeley Group Ltd, was held
on January 6 in London.
During the course of his speech.
SIR THOMAS SOPWITH, C.B.E.,
the chairman, said:-
The trading profits of the Group
for the year ended July 81, 1853.
after deducting reserve for in
creased replacement cost Of fixed
assets, amounted to $685. ,744. as
compared with s5,l84,552 for the
previous year. Both production
and sales Of the United Kingdom
subsidiaries show an increase on
last year. Our Canadian company,
A. v. Roe Canada Ltd, has shown
very marked increase in produce
ton arising from its important
contribution to the Canadian de.
fense program.
Turning to the consolidated ball
ance-sheet, you will observe that
after the provision Of 1,775, ,551 for
depreciation, fixed assets show an
increase of nearly sam. In addition
to the acquisition of certain Crown
assets in Canada, other substantial
expenditure has been incurred in
the United Kingdom.
We have this year set aside an
additional sum Of Sim. out of the
profits of the year to reserve for
replacement of fixed assets and de-
velopment, thereby increasing this
reserve to sem. Last year I said
that high taxation restricted both
expansion and replacement. Whilst
your board welcomes the reinstate-
ment of initial allowances, this il
merely a slight palliative in rela-
tion to the fundamental problem.
Taxation allowances are still re-
lated to historical cost and take no
coenisance of the increased cost Of
replacement. The already high
level of taxation without appropri-
ate reliefs based on replacement
costs results in too large slice OF
profits being taken away in taxa
ton and it adds to the burden Of
industry faced with the constant
renewal and improvement of cap
ital equipment.
Your board is recommending a
final dividend of 8 per cent, less
tax, making with the interim divi-
dend already paid a total dividend
for the year of Is per cent, less
tax. This compares with a total
distribution last year of 10 per cent.
less tax. Whilst your directors hope
to maintain this dividend in future,
I must sound note Of caution.
Our enterprise is, as you know,
vital link in the free worlds poten.
tial for defence and it is impera-
tive that We must progressively re-
place our plant if we are to MAIN
tain our position. This factor must
always be in the forefront when
We are considering our dividend
policy. and. indeed. it is only by
constant replacement and improve
ment that we can hope to ensure
continuation of future dividends.
Sir Thomas then moved on to
discuss the many products and ac-
!. tivities of the Group :. . the Vul.
can Bomber, the Hawker Hunter,
the Sea Hawk, the Gloster Javelin,
the CT, 100 long range fighter: the
Sapphire and brenda Jet engines,
the Sapphire motor car. Diesel en-
gines, guided missiles, alloys. and
Hawksley houses. He reviewed the
current status of British aircraft
and called for bolder research poll
icy. He concluded with these
words
We are now moving rapidly into
an age Of new weapons. Of atomic
and thermo-nuclear power. Let US
be bold. Let there be no hesitation.
Let us stride into the future conf
dent that We are already wrestling
from it that pioneering leadership
which has ennobled us in the past"
The report and accounts were
adopted.