Document V3pQE06xmORXYkBJ0e3Qy0vNq

BAKER PERKINS HOLDINGS LIMITED 1962  BAKER PERKINS HOLDINGS LIMITED DIRECTORS Chairman * A. I. BAKER C.B.E., J.P.,- M.A., M.I.Mech.E., M.I.Prod.E. Vice Chairman * J. F. M. BRAITHWAITE M.A. C. N. BROWN W. A. B. BROWN M.A., A.M.I.Mech.E. J. S. CAROLIN M.B.E., F.C.A. * H. CROWTHER J.P., A.M.I.Mecli.E. T. E. M. DOUGLAS B.A., A.M.I.Mecli.E. A.M.Inst.R. C. A. W. DUMBLETON M.I.Mech.E. S. . HARGREAVES M.A., A.M:I.Mech.E. * Members of the Group Management N. MOUNTAIN J. M. PEAKE M.A., A.M.I.MecliJB. * W. S. B. SAMPSON F.C.A., A.C.I.S. L. P. SIMPSON B.Sc. (Techl.V)), M.I.Prod.E. * R. H. WILKINS O.B.E., F.C.I.S. G. D. WILSON B.Sc. Secretary J. S. HARDY M.A., F.C.I.S. Auditors PRICE WATERHOUSE & CO., Bankers LLOYDS BANK LIMITED, MORGAN GRENFELL & CO., LIMITED Solicitors r CLIFFORD-TURNER & CO. Head office and registered transfer office WESTWOOD WORKS, PETERBOROUGH London office 13, STANHOPE GATE, PARK LANE, LONDON W.l. * A.KER PERKINS HOLDINGS LIMITED ) ORDINARY STOCKHOLDERS NOTICE IS HEREBY GIVEN that the Sixty-second Annual General Meeting will } held at the Ahercom Rooms, Bishopsgate E.C.2 on 27th May 1963 at 2.30 p.m. r the following purposes:-- 1. To receive and, if approved, to adopt the Directors' Report and the Accounts of the Company for the year ended 31st December 1962. 2. To declare a dividend. 3. To elect Directors. 4. To fix the remuneration of the Auditors for 1962. 5. To transact any other business of an Annual General Meeting. Stockholder entitled to attend and vote is entitled to appoint one or more proxies to tend and vote instead of him. A proxy need not be a Stockholder. egistered Office, 7estwood Works, sterborough. :d May 1963 By order of the Board of Directors, J. S. HARDY, Secretary. Dividend and Interest Payments Subject to the approval of the Stockholders at the Meeting, the warrants for the dividend on the Ordinary Stock will be posted on 31st May 1963 to Stockholders whose names appear on the Register on 17th May 1963. Dividend and interest payments.in 1963 will be made at the following times:-- 5f % Debenture Stock 64% Debenture Stock 7 % Preference Stock Ordinary Stock 31st May and 30th November 31st May and 30th November 30th March and 30th September 30th November 31st May (interim) (final) 2 CHAIRMAN'S REVIEW The Sixty-Second Annual Report and Accounts are issued for the first time under the new name of the Company, Baker Perkins Holdings Limited. This new name was adopted on the 1st January 1963 in accordance with the resolution passed by the stockholders on the 18th December 1962. The Board was most reluctant to propose changing the name of the Parent Company, but it was felt advisable to use the old name of Baker Perkins Limited for the newly formed subsidiary carrying on our traditional lines of manufacture at Peterborough and Hebbum-on-Tyne. This has caused the least inconvenience to our customers and I am sure our stockholders will feel it has been in their best interests. Details of the reorganisation of the structure of the Group were circulated to stockholders on the 23rd November last. The Parent Company has divested itself of the direct control of day-to-day trading activities and is now concerned with the overall direction of the Group, the pro vision of its financial requirements and certain administrative and management ser vices. It owns the shares in the subsidiary, and associated companies and most, of the land and buildings used by the United Kingdom subsidiaries, and this will be reflected in the future accounts of the Company. As a result of the reorganisation, I am very glad to welcome Mr. W. A. B. Brown, Managing Director of The Forgrove Machin ery Company Limited, and Mr. T. E. M. Douglas,. Managing Director of William Douglas. & Sons (Engineering) Limited, to the Board of Baker Perkms Holdings Limited. Their names come before the Annual General Meeting for re-election. The Chart on page 16 of this Report shows the re-grouping that has taken place in certain of the subsidiary companies. The new subsidiary. Baker Perkins Limited, is now responsible for the design, manufacture and sale in the United Kingdom of machinery for the bakery, flour confectionery, biscuit, chocolate and sugar confectionery industries and of foundiy machinery and welding and manipulating equipment. This com pany also holds the shares in two sub sidiaries whose products are ancillary to its own, namely, The Alliance Foundry Company Limited and Rownson Conveyors Limited. At the same time, Baker Perkins Chemi cal Machinery Limited has been formed to direct the interests of the former chemical and rubber machinery departments at Peter borough. Baker Perkins Granbull Limited, producing equipment for the plastics industry, and Steele & Cowlishaw Limited, producing machinery for the paint and ink industries, have been made subsidiaries of Baker Perkins Chemical. Machinery Limited, as their fields of activity are closely related. Our design and development organisa tion at Twyford has changed its name from Packman Machinery Limited to Baker Perkins Developments Limited, as a better indication of the nature of the services which that company provides to the Group. The reorganisation will enable each of the subsidiary companies to focus undivided attention on its own special field of activity, and I am confident that this will progressively improve efficiency throughout the Group, with beneficial effect on future results. This Review and the figures given in the Report and Accounts- refer, of course, to the operations of Baker Perkins Limited last year prior to its reorganisation and change of name. Accounts In my verbal statement at the Annual General Meeting last year, I had to qualify my forecast of the year's prospects by sounding a warning that the recovery in the United States subsidiary's business might come too late to enable it to make a profitable contribution to the year's results. Moreover, there was during the year a general lack of confidence in the economy of the United Kingdom and other countries forming our main markets. This resulted in a brake on the rate of investment in new capital equip ment of the type manufactured by the Group, and this, together with, general increases in costs, such as the engineering wages award of last July, adversely affected the Group's profits. As a result, the profit after taxation attributable to Baker Perkins Holdings Limited declined to 501,018 from 686,072 in the previous year. It will be seen that income from associa ted undertakings constitutes an appreciable 3 on of the net profit of the Group. I The Forgrove Machinery Company Limited and .d like to direct your attention to Note Rose Brothers (Gainsborough) Limited the Notes to the Accounts which Forgrove again made a substantial ins a changed basis of recording the contribution to the profits of the Group, ae from a European limited partnership and Rose Brothers, which is undergoing a /ear. Our investments in Europe have reorganisation, made a useful contribution. ased in significance with the failure of Energetic measures are being taken further Jnited Kingdom to join the European to increase the considerable exports of non Market and justify the steps your wrapping and packaging machinery by these i has taken over the years to ensure your Company has a permanent stake s important part of the world, kt the end of the year borrowed money two companies. Rose Brothers' subsidiary, Job Day & Sons Limited, improved on last year's good results, but the Northern Manu facturing Co. Limited suffered somewhat sd 6,775,000, including 3,000,000 from the slackness in the industries which it iture stock, showing an increase of serves. 000 compared with the previous year, .eview last year referred to the possibility sing more permanent capital to finance igh level of bank borrowings. Your tors decided, however, to defer any 1 during the year in view of the declining interest rates and the support that the any receives from its bankers. William Douglas & Sons (Engineering) Limited Further expansion in order-taking again took place, particularly in the field of industrial refrigeration as applied to air conditioning. Unfortunately the main bulk of the order-taking was late in the year and was thus not invoiced in 1962. This had an adverse effect on profits. The rate of growth since this company Kingdom Companies joined the Group has been fast, and the 'erkins Limited Company has outgrown its present valuable he factories at Peterborough and im-on-Tyne made a smaller contribu0 Group profits for the reasons- men- earlier. Nevertheless, the Company ued to spend large sums of money on ssign and development of automatic premises at Putney and Sunbury, and steps are being taken to re-locate it in a new factory at Basingstoke. This move should be largely financed out of the proceeds of the sale of the present sites and give ample scope to the encouraging prospects in this growing market. to meet the needs of the important ries that it serves, and also on the . ig of technical personnel for the future, fith the Government's efforts to direct to the north-east, our factory at im-on-Tyne should be favourably , especially for general engineering for it is well suited. . my Review which accompanied-the : and Accounts for 1959 and in my to the .Annual General Meeting in 960 I said that we had entered into an lent with the Government of Israel and Mining Industries for the design, icture and sale of equipment to the use of tetrabromoethane for 1 dressing. I said that this would be a :rm venture and we could not expect profitable results for at least five years, egret that after spending a great deal James Halley & Sons Limited The company has recently concluded an agreement for the manufacture and sale in this country, the Commonwealth and certain parts ofEurope, ofweb-fed offsetlithoprinting presses and.folders designed by the worldrenowned Aller Company of Copenhagen. Several sizeable orders for this equipment have already been received for newspapers and magazine work and interest is very lively. Orders in hand and in prospect are good. During the year James Halley & Sons Limited formed a new subsidiary company, FormMaster Limited, to acquire,and develop an invention for the production and printing of continuous stationery in offices and for commercial work. This machine is still under development but first sales should be made this year. and money on this project, it has been William Jack & Sons Limited l that this is an unsatisfactory venture, This company, which changed its name ptice has been given to the Israeli to Baker Perkins Jaxons Limited, on January to terminate the agreement on 28th 1st 1963 made a useful contribution to Group ais year. profits last year. 4 f Other U.K. Subsidiaries Baker Perkins GranbuU Limited, Baker Perkins Developments Limited and Rownson Conveyors Limited all showed losses on last year's operations, and steps have been taken to improve their results in the current year. The Kingston premises of Baker Perkins Granbull have been put on the market and production transferred to the Heb.bum-onTyne plant of Baker Perkins Limited. Exports Once again I can report that a record amount of 27.4 % ofthe total United Kingdom ' turnover was exported during the year under review. The majority of this was handled through Baker Perkins (Exports) Limited, London, whose specialised knowledge, of the world's markets and , of the intricacies of export procedures has been instrumental in achieving these satisfactory results. Export ing in the face of world-wide competition, tariffbarriers, import restrictions and national regulations is far from simple and rarely so profitable as business in home territories. I feel that much might have been done by the Government to give greater incentives to companies such as ours who are willing to undertake this vital work at a lower return. So far in the current year, orders from overseas are coming in at a slower rate. In view of the long production cycle for many of our specialised plants and products, this may mean that any increase in order-taking between now and.the end of 1963 could be too late to affect the year's invoicing. The value of plant and machinery manufactured- and sold. by our overseas subsidiaries amounted to just over 6 million so that, added to the exports from the United Kingdom, a total of 10J million or 47% of the Group's total turnover was in overseas markets. The financing of our ex port business has again been assisted by advances from our bankers. The unsuccessful outcome of the Brussels negotiations to secure this country's entry into the European Common Market was greeted with some disappointment by your Board but, as previously stated, we are well placed to maintain our share of the trade in this Market. Overseas Companies North America Baker Perkins Inc., in common with the industries of which it is a part, had a- poor year in 1962 and it operated at a small loss. Incoming orders, especially in the Chemical Machinery Division, fell off drastically after mid-year, due to an unexpected slackening in capital expenditures by its customers. The Food Division, which deals mainly with the baking industry, had a fairly good year for orders and its backlog at the end of the year was substantial. However, the Company's total invoicing was low and under-utilization of factory capacity continued as the major reason for the lack of profits. On May 1st 1962 the Company's Union employees went on strike. Although agree ment on a new contract had been reached with the Union Bargaining Committee, it was not ratified by the membership. The strike lasted nearly five weeks and curtailed operations for that period. Settlement was reached and normal work resumed on June 4th. The new labour contract does not exceed the original agreement in cost. Labour relations since the signing of the contract have been good. The Board of a competitor, Capitol Products Corporation, decided to cease opera tions in the bakery and chemical machinery fields due to continuing losses. As a result of that action, Baker Perkins Inc. purchased in January 1963 certain inventories and ancillary assets of the Read Standard Division of Capitol Products Corporation and made arrangements to supply service facilities and repair parts to former customers of the Read Standard Division in these industries. Canadian Baker Perkins Limited made a small profit during 1962 and is expected to show increased profits for 1963. Notwithstanding the fact that the fore cast for 1962 in last year's Review turned- out to be too optimistic, the view of the President ofBaker Perkins Inc., who has recentlybeen in this country, is that 1963 will be considerably improved. He and the Board of the American Company believe the prospects to be good for increased turnover and a return to profitable operations is expected. The Company's financial position continues to be strong and adequate facilities are available to support the expanding volume of business- projected for 1963. Australasia The Australian and New Zealand com panies again increased their sales during the year to a new record level, although, the profit was slightly less. This was due to the necessity of increasing sales and technical to deal with the continuing increase in fiume of business which, it is hoped, will ice another satisfactory result this year. Africa taker Perkins South Africa (Pty.) sd made a loss. Several amalgamations gst the South African Company's ners for the purposes of rationalisation oduction and distribution resulted in . capacity. Trading conditions generally difficult but it is hoped the Chairman ker Perkins (Exports) Limited will be to visit South Africa this year and the local management to stimulate iss in that country. America .s previously reported, we have now ual investment with Molins Machine any Limited in Baker Perkins Molins ash S.A., and that Company's results 3 longer consolidated. The Brazilian any experienced an extremely difficult g year, mainly due to embarking upon sr ambitious programme of manufac turing a period of severe inflation, he Management of the Company has strengthened and the factory has order book. The problems of raising ate finance for this expansion are g difficult and costly, and I feel it ary to visit Brazil myself in June. ement and Staff should like to draw your attention to mbol reproduced on the cover of this . Tt was adopted throughout the Group this year, and is intended to give a ate identity to the member companies hout the world. le Group possesses a very valuable a the skill of its many loyal employees and much has been expected of them in the past year. To them all I should like to express on your behalf our thanks and appreciation. Much steady progress is being made with the integration of the newer members of the Group and the recent reorganisation is intended to accelerate this process. The Future With the generally depressed state of the capital goods market in Great Britain and some other countries during the past year, it is not entirely surprising that our 1962 results suffered a setback. Although some improvement in the United Kingdom's economy has been pre dicted for some time, it has not so far achieved any measurable proportions in many of the industries served by the Group. There seems to be a lack of confidence and an uncertainty about the immediate future in this country and, as a result, investment in capital equipment of the kind that we supply has been at a much reduced level. However, there are signs that the rate of order-taking in certain of our subsidiary companies is gradually improving, but in the prevailing conditions I must emphasise that profit margins are being squeezed despite the fact that energetic steps continue to be taken to improve our productivity. Uncertainties still persist, and in the present circumstances I find it extremely difficult to make an accurate forecast of the results of the current year's operations of the Group despite the encouraging results expected from the United States subsidiary. A. 1. BAKER, Chairman. REPORT OF THE DIRECTORS The Directors submit their report and the audited Statement of Accounts for the year ended 31st December 1962. The consolidated results of the Group are shown in the Group Profit and Loss Account and are summarised below:-- 1961 1,294,427 696,594 686,072 18,008 61,148 214,018 392,898 Profit before taxation Profit after'taxation .. .. .. ............. Profit attributable to Baker Perkins Holdings Limited Allocated as follows: Dividends, less income tax, for 1962 -- Preference stock -- 7 % Ordinary stock -- 11% Interim paid, 6d. per 1 stock (2^ %) . Final recommended, l/9d. per 1 stock (8f %) Net profit retained by the Group 1962 844,351 496,901 501,018 18,008 61,538 215,383 206,089 THE COMPANY AND ITS SUBSIDIARIES For the reasons mentioned in the Chairman's Review, the name of the company was changed on 1st January, 1963, to Baker Perkins Holdings Limited. On the same date, two new Subsidiary Companies, Baker Perkins Limited and Baker Perkins Chemical Machinery Limited, were formed to carry on the former trading activities of the Parent Company. Baker Perkins A.G., Switzerland, was formed in 1962 with a share capital of Sw Frs 50,000 for the reasons stated in the Chairman's Review last year. In addition, FormMaster Limited was incorporated with a share capital of 5,000 as a subsidiary of James Halley & Sons Limited. DIRECTORS The Directors, acting under article 85 ofthe company's Articles of Association, appointed W. A. B. Brown and T. E. M. Douglas as Directors of the company, and they are now eligible for re-election. The Directors retiring by rotation are J. F. M. Braithwaite, C. N. Brown, J. S. Carolin, H. Crowther and R. H. Wilkins, who, being eligible, offer themselves for re-election.. AUDITORS Messrs. Price Waterhouse & Co. have signified their consent to continue in office. By order of the Board,. J. S. HARDY, Secretary. 23rd April, 1963. SR PERKINS HOLDINGS LIMITED AND SUBSIDIARY COMPANIES fated Profit and Loss Account for the year ended 31st December, 1962 196.1 1,418,675 234,635 1,653,310 >00 583 358,883 1,294,427 ' 597,833 696,594 (10,522) 686,072 )8 18 18 293,174 392,898 - ' 3,423,144 >57 !85 3,816,042 . Operating profit (Note 1) Income from associated undertakings (Note 2) 1962 913,216 306,114 Interest payable on: Debentures .. Bank and other accounts .. 1,219,330 183,750 191,229 374,979 Profit before taxation........................................ Taxation (Note 3) .. ............................ 844,351 347,450. Profit after taxation Loss attributable to minority interests in subsidiary companies 496,901 4,117 Group profit of the year attributable to members of Baker Perkins Holdings Limited (Note 4) .. .. Dividends less income tax on: 7 % Preference stock ............................ Ordinary stock: Interim, 6d. per 1 stock Final recommended, l/9d. per 1 stock 18,008 61,538 215,383 501,018 294,929 Net profit retained by the Group .. Transfer to capital reserve (Note 8) .. 206,089 110,114 Revenue reserves brought forward .. 95,975 3,816,042 Unappropriated profit carried forward Baker Perkins Holdings Limited .. Subsidiaries........................................ 1,141,891 2,770,126. 3,912,017 to the accounts BAKER PERKINS HOLDINGS LIMITED AND SUBSIDIARY COMPANIES Consolidated Balance Sheet at 31st December, 1962 1961 5,069,306 . 582,752 5,6>52,058 8,487,262 8,224,292 609,250 17,320,804 3,566,807 626,289 409,754 214,018 4,816,868 Fixed Assets Land, buildings, plant and machinery (Note 5) Interests in associated undertakings (Note 2) r Current Assets (Note 7) Stock and work in progress Debtors Cash and United States Treasury Bills Less: Current Liabilities (other than bank advances) Creditors .. ........................... Progress payments .. .. .. Current taxation .. .. .. Recommended ordinary dividend 3,335,972 592,538 457,625 215,383 1962 5,371,377 728,867 8,321,054 8,719,659 611,794 17,652,507 4,601,518 6,100,244 12,503,936 13,050,989 18,155,994 420,000 3,993,343 4,413,343 1,933,177 3,816,042 - 5,749,219 10,162,562 1,641,715 481,570 1,500,000 1,500,000 3,000,000 2,870,147 5,870,147 18,155,994 Financed as follows: Capital and Reserves Attributable to Members of Baker Perkins Holdings Limited Capital 7 per cent cumulative Preference stock Ordinary stock Reserves Capital (Note 8) Revenue Capital and Reserves Attributable to Minority Interests in Subsidiaries Future Taxation ........................... Borrowed Money Debenture Stock (Note 9) 1,500,000 5f per cent 1979/84 .. 1,500,000 6i per cent 1981/86 .. Bank advances (Secured 946,000; 1961 993,465) 19,151,233 420,000 4,018,809 2,111,593 3,912,017 4,438,809 6,023,610 10,462,419 1,635,292 278,270 1,500,000 1,500,000 3,000,000 3,775,252 6,775,252 19,151,233 See notes to the accounts IER PERKINS HOLDINGS LIMITED ce Sheet at 31st December, 1962 1961 137,612 130,791 Fixed Assets Land, buildings, plant and machinery (.Note 5) Interests in associated undertakings (Note 2) 368,403 224,936 164,724 113,256 9,717 Interests in Subsidiaries (Note 6) Current Assets (Note 7) Stock and work in progress Debtors Cash 1962 1,984,891 543,369 2,528,260 5,805,311 2,869,917 2,619,856 24,422 *87,697 98,996 95,186 4,595 14,018 Less: Current Liabilities (other than bank advances) Creditors..................................................... Progress payments ............................ Current taxation Recommended ordinary dividend .. 1,462,474 148,505 215,383 5,514,195 -- 12,795 1,826,362 74,902 3,687,833 68,241 20,000 13,343 Financed as follows: Capital and Reserves Capital 7 per cent cumulative Preference Ordinary 12,021,404 . Authorised Issued and in shares converted of 1 each into Stock 420,000 420,000 .. 6,000,000 4,018,809 13,343 13,464 18,657 12,121 Reserves Capita] (Note 8) Revenue .. .. 6,420,000 .,, 1,435,268 1,141,891 4,438,809 2,577,159 *5,464 70,000 0,000 0,000 Future United Kingdom Taxation Income Tax 1963/4 Borrowed Money Debenture Stock (Note 9) 1,500,000 5 per cent 1979/84 1,500,000 6j per cent 1981/86 .. .. 7,015,968 38,000 1,500,000 1,500,000 0,000 2,777 Bank Advances......................................... 3,000,000 1,967,436 52,777 58,241 s to the accounts A. I. BAKER 1, W. S. B. SAMPSON j Directors 4,967,436 12,021,404 ' 10 NOTES TO THE ACCOUNTS 1 OPERATING PROFIT This is after deducting: Depreciation .. Emoluments of the directors of Baker Perkins Holdings Limited for:-- Fees_ ' Services as Managers of parent and subsidiary companies Pensions to past directors or their dependants ( 1962 492,682 3,250 92,699 10,426 1961 474,371 3,081 120,377 8,773 2 ASSOCIATED UNDERTAKINGS (a)- Income Minority interest in European limited partnership -- Profit for year before taxation attributable thereto (1961 gross amount remitted) Shares in associated companies -- dividends received 1962 287,428 18,686 1961 207,871 26,764 306,114 234,635 Hitherto, income from the partnership has been included in the profit and loss account only to the extent of remit tances received.' Had the basis of accounting adopted this year applied in 1961, the income from associated undertakings in that year would have been higher by 85,025. (b) Interests in associated undertakings:-- Minority investment in European limited partnership at cost Net unremitted profits in 1962 Parent Company 1962 205,215 110,114 1961 205,215 The capital and unremitted'profits attributable'to this investment at 31st December 1962 amount to 935,835 Shares in associated companies at cost .. Advance to associated company 315,329 171,815 56,225 205,215 169,351 56,225 543,369 430,793 Group 1962 205,215 110,114 1963 205,215 315,329 205,215 357,313 56,225 728,867 321,312 56,225 582,752 TAXATION Based on the profit for the year United Kingdom (after relief of 46,000 (56,000) for investment allowances). . Income tax .. .. .. .. .. ............... Profits tax .... .. .. .. .. .. ............... .... Overseas (including 106,623 on unremitted profits of European limited partnership) Less Double taxation relief ,. Less Adjustments in respect of previous years .. .. .. ... 1962 1961 ' 204,578 409,193 79,439 359,645 173,367 . . 157,988 457,184 36,832 726,826 125,065 420,352 72,902 601,761 3,928 347,450 597,833 Capital allowances obtained to date have had the effect of deferring United Kingdom taxation to the extent of 283,000 (301,000) calculated at current rates of tax. Corresponding additional charges for taxation will fall upon the profits of future years during which the relative assets are in use. 4 PROFIT ATTRIBUTABLE TO THE PARENT COMPANY Net profit of the Group attributable to Baker Perkins Holdings Limited of 501,018 (686,072) includes 408,277 (448,122) which was dealt with in the Parent Company profit and loss account. 5 LAND, BUILDINGS, PLANT AND MACHINERY Group Freehold and leasehold land and buildings Plant, machinery and equipment Motor vehicles Net 1962 - Cost Deprec. 3,052,099 757,175 6,220,417 3,346,678 431,259 228,545 9,703,775 4,332,398 5,371,377 1961 Cost Deprec. 2,901,587 696,601 5,751,685 3,104,432 . 424,222 207,155 ' 9,077,494 4,008,188 5,069,306 ES TO THE ACCOUNTS -- continued rent Company eehold and leasehold land and buildings int, machinery and equipment Dtor vehicles 1962 Cost Deprec. 1,142,430 280,675 2,262,554 1,222,578 168,071 84,911 3,573,055 1,588,164 1961 Cost Deprec. 1,114,457 259,629 2,129,585 1,139,068 170,603 78,336 3,414,645 1,477,033 Net .. .. 1,984,891 1,937,612 iation includes amounts provided by subsidiaries prior to acquisition by the Parent Company.' tments for capital expenditure at the balanee sheet dates, not provided in the accounts, are estimated for the at 228,000 (224,000) and for the Parent Company at 107,000 (61,000) ESTS IN SUBSIDIARIES /estments in, and amounts due to and from subsidiary companies, are as follows: Shares at cost or Directors' valuation in 1926 .. Balances due by subsidiary companies .. Balances due to subsidiary companies 1962 4,084,575 2,108,127 6,192,702 387,391 5,805,311 1961 4,006,629 1,608,435 5,615,064 390,128 5,224,936 NT ASSETS ick and work in progress is included in the accounts at the lower of cost or net realisable value, oup debtors include debts totalling 657,258 not due within one year. ited States Treasury Bills are at cost, 319,049, and had a market value at 31st December 1962 of 320,310. vL RESERVES kt 31st December 1961 Premiums on issue of 25,466 ordinary shares .. .. .. .... Amount written off shares in associated companies to reduce to cost Transfer from profit and loss account being unremitted profit for 1962 attributable to a minority interest in a European limited partnership Par value of shares distributed to a subsidiary by the European limited partnership Other adjustments arising on consolida tion kt 31st December 1962 Share .Premium Account 770,782 37,652 808,434 Parent Company Fixed Asset Replacement Reserve . Other 522,682 (5,962) Group Total Total 1,293,464 1,933,177 37,652 37,652 (5,962) (5,962) 516,720 110,114 110,114 110,114 28,055 8,557 110,114 1,435,268 2,111,593 TURE STOCK 30th November 1964 and annually thereafter the Company must set aside and apply 30,000 in the redemption at le 1979/84 stock to be selected by drawings and must apply a further 30,000 in respect of the 1981/86 stock from ivember 1966, unless already purchased in the open market at a price not exceeding 105 per cent. GENT LIABILITIES alance sheet dates these amounted to 724,000 (448,000) for the Group, of which 428,000 relates to contingent s in respect of discounted trade bills. For the Parent Company the amount was 385,000 (151,0001 excluding 2es relating to subsidiaries. OF EXCHANGE sets overseas (and depreciation thereon) have been expressed in sterling at the exchange rates ruling at the dates sition, and other overseas assets and liabilities at the rates ruling at 31st December 1962. 1ARIES' ACCOUNTING DATES ounts of two overseas subsidiaries are made up to 30th September 1962 and one other to 30th November 1962. erences between inter-company balances amounting to 105,475 have been included in debtors. For convenience gement the accounting dates of these overseas subsidiaries do not coincide with the date of the Parent Company. 12 REPORT OF THE AUDITORS TO THE MEMBERS OF BAKER PERKINS LIMITED The profits of the European limited partnership dealt with as shown in note 2A are in accordance with accounts which have not been, audited by us. Subject to this fa) in our opinion the annexed accounts and notes give, so far as concerns members of the company, a true and fair view of the state of affairs as at 31st December 1962 and the profit for the year ended on that date of the company and of the group consisting of the' company and its subsidiaries and (b) we have obtained all the information and explanations which we considered necessary. In our opinion the company has kept proper books, and the balance sheet of the company, which is in agreement with them and with the said information and explanations, gives with the group accounts and notes in the prescribed manner the information required by the Companies Act, 1948. 3 Frederick's Place, Old Jewry, London, E.C.2. 23rd April, 1963. PRICE WATERHOUSE .& Co., Chartered Accountants. 13 SOME BAKER PERKINS PRODUCTS New World' rotogravure ress in the St. Helens British Sidac Limited. It to five colours on 'dm. akery plant supplied by kins Inc. to Oroweat , Los Angeles. On the .1. t . .V !ER PERKINS HOLDINGS LIMITED AND SUBSIDIARY COMPANIES i Financial Statistics 100) i employed in the Group Assets .. torrent Assets (before deducting k advances) .. .. .. ssets .. .. .. . 1958 3,770 7,089 10,859 1959 3,878 8,105 11,983 1960 <348 9,006 13,354 1961 5,652 12,504 18,156 1962 6,100 13,051 19,151 jed as follows ary Capital .. .. il and Revenue Reserves .. .. ary Stockholders' Equity .. Mice Capital .. .. .. ity Shareholders in Subsidiaries ; Tax Reserves .. .. .. ved Money .. .. .. 2,201 4,832 7,033 420 1,522 274 1,610 10,859 2,357 5,226 7,583 420 1,603 182 2,195 11,983 *3,072 4,843 7,915 . 420 1,713 207 3,099 13,354 3,993 5,749 9,742 420 1,642 482 5,870 18,156 . 4,019 6,024 10,043 420 1,635 278 6,775 19,151 nd Profits nation and Replacement Re& .ing Profit and income from iciated Undertakings t on Borrowed Money an .' . ofit ties Share of Net Profit 'rofit attributable to Baker ins Holdings Ltd........................ nee-Dividend ry Dividends .. .. .. 14,300 379 1,001 107 464 430 14 416 17 133 15,450 360 894 122 293 479 61 418 18 143 18,000 366 1,357 164 563 630 100 530 18 214 23,700, 474 1,653 . 359 598 696 10 686 18 275 22,750 493 1,219 375 347 497 . (4) 501 18 277 for Ordinary Dividends ads Paid .. .. afit attributable to Baker ns Holdings Ltd. less Pre- ce dividend as % of Ordinary ^holders' Equity ... . 3-0 10% 5-7% 2-8 10% 5-3% *2-4 1H% 2-4 m% 1-7 m% 6-5% 6-8% ' 4-8% > ?'