ARMSTRONG'S POSITION.
At first sight the Annual Report of Armstrong Whitworth & Co. is a discouraging document in the sense that it shows a net loss of £552,000 after meeting all expenses and interest charges on Debenture Stocks, &c. Moreover, this net loss for the year increased the total debit balance to £965,742. As a matter of fact, however this loss had already been provided for, being included in the total figure of over £14,000,000 which was written off under the scheme of reconstruction. The accounts are now in a transition stage, and the new consolidated balance sheet presents a really strong position. The total assets stand at £7,151,852, all the Debenture Stocks, except the 4 per cent. First Mortgage Stock having been eliminated by the transfer of certain assets to Holding Companies formed for the purpose. More- over, the Bank Loan of £8,000,000 no longer appears, the Bank having taken " B " ordinary shares in full satisfaction. The reorganized company, therefore, has a Debenture debt of only £1,036,000, while the balance sheet shows creditors and credit balances of £915,649. There are reserves of £287,000, while Cash stands at the very large figure of £884,820, and British Government and similar securities at £1,278,000. The directors are also able to report that orders on hand at April 30th last amounted to about £1,500,000, though it is added that under existing conditions, prices generally, are unremunerative. Efforts are being made to effect improvement in that respect.
* * * *
Previous page
