COMPANY MEETING
HAWKER SIDDELEY AIRCRAFT COMPANY, LIMITED
MR. T. 0. M. SOPWITH'S REVIEW
THE Second Ordinary General Meeting of Hawker Siddeley Aircraft Co.,Ltd., was held on November 15th at the May Fair Hotel, Berkeley Street, London, W., Mr. T. O. M. Sopwith3C.B.E.
(chairman of the company), presiding, said : Ladies and gentlemen,. at our last annual meeting I ventured a forecast that the profit for the current year just ended should in the aggregate be higher—and perusal of the report and balance-sheet will confirm that my forecast has been justified. With your permission I propose to take these documents as read.
The accounts show that our revenue for the year amounts to £783,437 17s., trom which have been deducted income-tax and National Defence Contribution, amounting to £594,458 7s. 9d. ; directors' fees amounting to £1,256 4s. 8d.administration and other charges amounting to £8,017 15s. 9d., and bank interest amounting to £6,549 16s. 4d., leaving a balance of £573,195 I2S. 6d. available for payment of dividends on the preference and ordinary share capital. Out of this there has been paid or provided for divi- dends, less tax, on the 5 per cent. cumulative preference shares, amounting to £52,937 los., and an interim dividend of 15 per cent., less tax, on the ordinary shares, amounting to £163,447 145. 8d., leaving a balance of £362,443 i8s. 5d. Out of this the directors recommend payment of a final dividend on the ordinary shares of 17i per cent., together with a cash bonus of to per cent., both less tax, making with the interim dividend already paid a total dividend on the ordinary shares for the year to July 31st, 1937, of 32i per cent., together with a cash bonus of to per cent., both less tax. This will absorb £299,654 3s. 7d., leaving a balance to be carried forward to next year of £62,789 14s. sod.
I am pleased to report that your subsidiary companies have experi- enced a satisfactory year and turnover shows an increase in every case.
Unfortunately, for reasons of official secrecy, I am unable to give you a precise indication of the situation of our aircraft and allied organisations, but I am glad to be able to report that progress has been in excess of anticipation. The unfortunate troubles in Spain and the Far East have shown in no uncertain manner the swift and appalling potentialities of the air arm, and it requires little imagination to visualise what might happen in this country if we were faced with a relentless enemy fully equipped with bombing and fighting aircraft. Today—whatever the ethics of the situation—we are most urgently called upon to deal with the matter with more vision than ever in our history. We are living in times of great anxiety, and it is vital to the interests of the Empire that our armed forces be equipped to face any contingency and to know that there are adequate reserves available. I believe the Government realises the necessity of main- taining a standard of first line and reserve material of such dimensions as will cause any possible aggressor to hesitate. It is an insurance policy which will require a premium in the shape of additional expenditure, but no price is too heavy to pay, and no sane person will hesitate to accept the contention that the security of the British Empire and the safety of its people are essential to civilisation and progress.
The establishments controlled by your company arc equiped to take their share of responsibility in this task, and are contributing in a marked degree to what might be known as the " Security Campaign."
At the same time I would emphasise the fact that our purely com- mercial side is not only maintained but is expanding. The recent Motor Show proved the continued interest in, and demand for, the Armstrong Siddeley motor car, and the improvements which have been effected in this direction should show beneficial results during the current year.
The " Air University as I would describe our organisation of " Air Service Training ' continues to progress.
I am very pleased to report that our export business as a whole has improved during the last year.
The question of research and development, particularly in con- nexion with the aircraft and aero engine programme, is of great importance, and apart from general procedure we have made provision for a special department to deal with the subject from both the tech- nical aspect and practical application.
You are aware of the proposed increase in the capital structure of the company by the issue of a further two million redeemable cumula- tive preference shares of Et each and subject to your approval of the resolution, a prospectus setting out the offer will be issued forthwith. The subsidiaries controlled by your company have of necessity been financed by the parent company and bank loans. They have been compelled, in order to meet the requirements of the armament pro- gramme, to spend large sums on extensions, new factories, plant, aerodromes and equipment, recovery of which must naturally be spread over a period. The additional capital will enable these loans to be repaid, the saving in interest and bank charges and additional anticipated profits should, in my opinion, exceed the cost of the service of the issue proposed and capital will be available for the general purposes and development of the business.
The report and accounts were adopted.
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