VICKERS' REARMAMENT Acnvrry Mr. A. A. Jamieson gave shareholders of
Vickers on Monday as clear a picture of the company's growing volume of rearmament work as the necessary secrecy which surrounds this class of business would allow. He disclosed that the whole group is occupied as fully as the supply of skilled labour will permit, and that under present conditions arma- ment work absorbs the largest share of that activity. Thus, commercial work has to receive less attention. But he also gave an assurance that the board does not forget that in the course of time the company will have to rely in greater measure on commercial work.
He foreshadows an increased gross profit as a result of the larger turnover which is being handled this year, but indicated that there were various expenses, such as higher taxation, A.R.P., staff pensions and holidays with pay which might tend to prevent the increase in gross profits being translated into net profits. How these divergent forces may eventually tip the scale of the profit and loss account Mr. Jamieson did not foretell, except by inference to suggest that the very important subsidiary, Vickers-Armstrong, might pay a larger dividend to Vickers. He expressed the hope that Vickers-Armstrong might clear the arrears on its " B " preference capital and make a start with ordinary dividends. To bring the " B " preference dividend up to December 31st, 1939, it will have to pay to Vickers 5 years and 3 months' dividends, against 5 years and 2 months actually paid in 1938. If, in addition, an ordinary dividend is to be paid, it is clear that Vickers must receive a substantially larger sum.
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