Rebates to B.T.C. Eat Up Profits
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BECA USE the British Transport Commission demands a much greaterdiscount than was formerly given to independent hauliers, the profits of Spurling Motor Bodies, Ltd., on the sale of replacement parts, have fallen. The chairman of the company makes this point in his annual report.
He also says that selling prices of the company's products have not been increased: instead, the all-round profit margin has been reduced. Even so, the combined turnover last year again topped the £2,000,000 mark.
Despite difficult economic conditions. the company has opened a new factory at Park Royal exclusively for the manufacture of all-metal bodies in which standard frames and panels are used. An additional factory building has been erected at Hendon to allow the output of composite bodies to be increased. New premises have also been acquired at Watford for a subsidiary, Marble Arch Motor Supplies, Ltd.
A new business has been opened in Colchester and another company (Coat bridge Engineering Co., Ltd.)has been formed at the request Of the Ministry of Supply for the maintenance and reconditioning . of Government-owned vehicles.
kt an extraordinary genetal meeting on August 31, shareholderf are to be asked to anthorize the creation of
500,000 ordinary shares of 4s. each. "Under more normal conditions, when the general level of taxation might reasonably be expected to be much lower, it should be possible to provide very substantially for capital expansion out of undistributed profits," says the company. The present state of affairs does not permit this to be done and it is therefore necessary to find fresh money for this purpose."