ATV financial results: 1975
Sir Lew Grade on Associated Television Corporation’s 1975 results
“Thanks to the policy of diversification your Company is now very soundly based … all monies expended now are an investment for the future”
Results and Dividend
The Group profit of £5,746,000 [£42.4m in today’s money allowing for inflation – Ed] before taxation, as against £7,268,000 [£53.7m] for the year 1973/74, reflects the reduced profitability of the operation of the television franchise and the increase in finance charges.
It speaks highly for the buoyancy of the other subsidiaries that in these circumstances the figure of Group profit should not have been more seriously impaired. Thanks to the policy of diversification the Company is now very soundly based.
Earnings per ‘A’ Stock Unit were 6.51p [40.04p] (1973/74 – 8.64p [63.76p]). The final dividend of 2.05p [15.13p] with the interim of 1.85p [13.65p] already paid, makes a total of 3.9p [28.72p] per ‘A’ Ordinary Stock Unit for the year.
Television
The reduction in the television profits from £3.07 million [£22.7m] to £1.68 million [£12.4m], after a payment of £2.85 million [£21m] as Exchequer Levy, is closely in line with the forecast made last year. Exchequer Levy and Corporation tax together consumed no less than 83 per cent of the profits of the Network.
Film Production
Benefit from investment in film production is never short-term, and profits should not be looked for before the second year. However, with careful forward planning of distribution, all monies expended now are an investment for the future.
I become more and more convinced that personal visits overseas are essential if the needs of the international film and television markets are to be properly understood. During the past year I made a total of 26 such trips.
Theatres
Stoll Moss has enjoyed a good year. “Billy” at Drury Lane has proved the most successful musical since “My Fair Lady”, and “Hans Andersen” at the London Palladium has established a new record as a family musical that has run from Christmas into the summer months and beyond. The results of Bermans & Nathans, the theatrical costumiers, though disappointing show improvement over last year.
Records, Tapes and Music Publishing
The success of Pye Records and Precision Tapes has proved outstanding in every way, and with profits now exceeding £2 million [£14.8m], these companies represent a major force within the musical industry.
ATV Music Publishing has again shown itself a source of major strength and is now one of the most important operations of its kind in the world today.
Ansafone, acquired in 1973 has continued to show steady growth and an entirely new range of apparatus has been developed for Continental and American markets.
Property
The results of Bentray Investments, at over £1.7 million [£12.6m], are most satisfactory. The company is responsible for 156 properties and in the major development — the ATV Centre, Birmingham — 18 complete floors of the Tower have already been let.
Copies of the full Report and Accounts are available from the Secretary, Associated Television Corporation Limited, ATV House, 17 Cumberland Place, London, W1A 1AG.
Transdiffusion analysis
With Labour back in power and the economy still in the total shambles the Tories had left it in, the corporation’s tax bill has now reached almost 53% of its profits, and the ITV franchise is seeing 83% of its profit taken by the Treasury, as Chancellor Denis Healey desperately tries, and fails, to balance the nation’s books. For the first time in a long while, ATV Corporation’s dividend is lower this year than last, depressing the share price and allowing other organisations to start buying up the company’s equity comparatively cheaply.
| Group Results at a Glance | 1975 – £’000 | 1974 – £’000 | 1975 £m + inflation | 1975 £m + inflation |
|---|---|---|---|---|
| Turnover | 60,059 | 54,851 | 443,235 | 404,800 |
| Profit before Taxation | 5,746 | 7,268 | 42,405 | 53,638 |
| Profit after Taxation | 2,723 | 3,616 | 20,096 | 26,686 |
| Shareholders’ Funds | 38,416 | 35,022 | 283,510 | 258,462 |
| Profit Retained | 1,092 | 1,462 | 8,059 | 10,790 |
| Return on Shareholders’ Funds | 7.10% | 10.3%% | ||
| Earnings per Share | 6.5p | 8.64p | 47.97p | 63.76p |
| Dividend per ‘A’ Ordinary Unit | 3.9p | 5.125705p | 28.78p | 37.83p |
ATV Corporation interests, in addition to the 7 day-a-week television franchise for the Midlands area, include film making, theatres, record, tape and music publishing companies, the manufacture and supply of telephone answering equipment, theatrical costumes, and merchandising and property companies.
ASSOCIATED TELEVISION CORPORATION LIMITED
About the author
As a public company with shareholders, ATV was required to publish a detailed Annual Report at the end of each financial year. It was common to also publish a Chairman's Statement, summing up the report in more readable language.
