S.T.D. MOTORS.
Although the S.T.D. Motors Company may have some way to go before profits reach the standard desired, the latest report shows a very satisfactory recovery in the position. By reason of the capital reconstruction scheme carried through during the past year, it is not possible to make a precise com- parison with the figures of the previous year, but it is quite easy to discern the improvement which has taken place. During the previous year three of the Subsidiaries traded at a profit, while six sustained losses. This time, after making full provision for depreciation, &e, amounting to nearly £81,000, the net trading profits of six of the English subsidiary companies aggregate £73,066. In fact, compared with the previous year, the trading position improved to the extent of nearly £160,000. One English company made a loss, which, however, was provided for in the capital reconstruction scheme of that Company. The French subsidiary company, however, continued to suffer from the severe trade depression in France, and after charging 2,500,000 francs for normal depreciation on buildings, &c., there was a loss of 6,864,000 francs. This loss was also provided for under the capital reconstruction scheme, but in spite of the amount written off the Company's holdings in France under this reconstruc- tion scheme, the directors now express the opinion that, owing to the subsequent rapid depreciation of economic conditions in France, the book value of the Company's investments in that country is substantially in excess of their estimated value today.
The results of the English subsidiary companies, however, showed improvement and the Sunbeam Company is reported to have made excellent progress with its new line of produc- tion, the Trolley 'Bus. The credit balance at the end of the year, after providing for interest on the 8 per cent. Guaranteed Notes, depreciation, &c., amounted to £37,225, which is to be carried forward. This compares with £10,225 a year ago.
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