Advertiser (Adelaide, SA : 1931 - 1954), Wednesday 30 June 1954, page 5


H0RW00D BAGSHAW LIMITED

Chairman's Address

At the annual general meeting of shareholders held yesterday, the chairman of directors (Mr. W. J. Barker) reported to the shareholders as under:'—

Ladies and Gentlemen, I desire, before dealing with the normal business of this meeting, to refer with the deepsst regret ' to - the 'death )f bur esteemed late managing director, Mr. Bruce a. Farrow. Mr. Farrow [ointed ,' the company in 1932, and served with distinction a number of important executive positions in the company before being appointed to the board of directors, and in 1947, to the position of managing director. Not only did he possess a very keen and sound - knowledge of top level management, but also, his practical knowledge of the company's products fitted 'him admirably for the position he held, and, in his passing, we suffered a very severe loss. ?'?' TURNOVER: . Sales for the year, were considerably in excess of previous years, 'and constituted a record, despite adverse seasonal conditions in some localities, and . were well distributed throughout all States of the Commonwealth. The company's general engineering section was kept particularly busy, throughout the year. Our water supply division has again assisted greatly in rural . and outback development, while, drilling plant and watery supply equipment were in constant demand, and of inestimable value to the man on the land. . Sales of Lister and other agency lines were well maintained, and form a valuable adjunct to the company's sales of manufactured agricultural machinery. PLANT: .:v ::,;?' :? The new foundry which was officially opened by the Premier during last Apr! is operating smoothly, and Is a very valuable addition. The plant generally has been maintained in excellent order, and the policy which we have adopted in modernising plant, along with further mechanisation, has resulted in more efficient production. This policy is being continued. In addition, we are keepIng abreast of modern trends not only in machine tools, but also in methods of production. LABOR AND MATERIALS: Whilst unskilled labor has now become more plentiful, difficulty is still being experienced in obtainini certain selected skilled labor but as migrant labor becomes more conversant with Australian requirements and conditions the position is improving. We have been able to maintain adequate am well-balanced stocks of all materials which has enabled us to carry out our increased output. RESEARCH AND DEVELOPMENT The company is in constant touch with the progress of agriculture, so that we can meet the expanding and changing demands in tools for primary production. This has been greatly assisted by the expanding facilities afforded us by our Australia-wide Cockshutt Franchise. NEW SOUTH WALES: A very fine property situated on the Parramatta road, Oranville, new South Wales, containing 34,(MH square feet of floor space in one single span building has been purchased, wit

available land to build offices and showrooms, which work will be underaken shortly. This will fill a long felt need in our aperations in New South Wales, and will enable the branch more efficiently to isssemble. service and distribute the ? company's range of products in that 8tate. ACCOUNTS: . Now turning to figures: during the, year, we added £84,413 .to our ordinary capital, which now stands at £345,409, and with £76,659 preference shares, totals £422,068. Total assets now aggregate £1,132,150, of which ixed assets comp rise £537,184, having increased by £146,704, whilst current assets standing at £594,966 now exceed current liabilities, including tax provision, by £392,332. The financial strength of tie company is revealed in the balance sheet showing reserves, including the amount standing to the credit of .profit and loss account, namely £484,424. Ordinary capital is supported by assets in excess of liabilities by £829333. Shareholders are, therefore, well secured. For every £1 received for tale of products:— 8.5% or 42.2 p.c. went to suppliers '? O f ? materials and ? ? services. 6,5'A or 32.19 p.c. went to employes ? In wages and salaries. 1.5 or 7.12 p.c. went to the / . Oovernm e n t ; ? for taxation. 2.9V* or 13.9 p.c. for use in the business as future secur: ?? ity. , ? ?? ; .6VV or.' 2.59 p.c. went to provide 'for de' preciation on :' plant and equipment. ' .4%. or 2 p.c. went - to shareholde r s as dividends. 20/- or loo p.c. For every £1 of net profit:— 8.5'A or 42.24 p.c. went to the * Governme n t in tax. 6.9V* or 44.07 p.c to the business in reserves. 2.9 or 13.69 p.c. to shareholders asdividends. dividends. 20/ or 100 p.c.

FUTURE: During the past year, the market for agricultural products, and therefore, the products of those associated with primary production, has undoubtedly moved from a sellers' to a buyers' market, a condition which your board of directors welcomes. Competition provides the inspiration and initiative so vitally necessarv to maintain progress. With the greater consumption of food by Australia's ever-growing population, and the high standard of quality and performance our products enjoy, together with an expanding range of machinery and markets, your directors have every confidence in the future prospects of the Company. Before concluding this report, it is appropriate that I should mention the completion of 50 years' service with the company, of two of our directors. Messrs. Andrew E. Smith and Horace R. Horwood, the latter retiring from the position as general sales manager, last September, and I am glad to pay tribute to the value of the work they have contributed during this lengthy period, and also the loyalty and energy of the executive, staff and employes, who have materially contributed to the results achieved.