“The profit figure of £14,101,000 is the second highest in the 25-year history of the company. Indeed, had it not been for a national industrial dispute which kept the whole of Independent Television off the air for eleven successive weeks, the profit would undoubtedly have exceeded the record of £16,308,000 which was achieved in 1978/79”

[£14,101,000 is £57.5m in today’s money allowing for inflation. £16,308,000 is £66.5m – Ed]

Television

ATV’s current contract for seven-day-a-week television runs until 31st December 1981. By the end of 1980 the Independent Broadcasting Authority will reach its decision on the award of new contracts which will run for eight years. For the period of these contracts the Midlands franchise area will be a dual region comprising the East and West Midlands and ATV has applied for the contract.

A new company, ATV Midlands Limited, has already been set up and a second studio complex is planned for the East Midlands.

T.V. programmes

Initially a proportion of ATV productions will continue to be made at Elstree. Thereafter, Elstree will become available for additional television productions and for special programmes for export.

A new company, Daybreak Television, in which ACC has a minority interest, has made an application for the proposed nationwide breakfast-time television franchise, and Elstree has been suggested as the ideal production centre.

Films

Our subsidiaries now embrace all three aspects of production, distribution and exhibition and the acquisition of Classic Cinemas place more than 140 screens at our disposal. The full-length ‘Muppet Movie’ has broken box office records and its much sought after successor is already in production. Altogether, the film division production schedule has never been stronger.

Theatres

The theatre division enjoyed a year of truly outstanding successes and its profit figure of £1.1 million [£4.5m] stands at an all-time record. The year saw packed houses for Yul Brynner in ‘The King and I’ at the Palladium and ‘Annie’ at the Victoria Palace. The theatrical costumiers, Bermans & Nathans, established new overseas records and their work is to be seen in London’s exciting new attraction – ‘The Palladium Cellars’.

Music

Our main music publishing subsidiary, ATV Music, rose to be the No. 2 company in UK music publishing, and profits and prospects are both excellent. Its subsidiary company, Bruton Music, is now firmly established as a prominent supplier for both television and films.

Records

In common with all other record companies, Pye Records had to face a world-wide recession within the industry. Special attention is now being paid to the important new development of video cassettes and video discs.

Property

The results of Bentray Investments – up from £3.5 million [£14.3m] to £4.2 million [£17.1m] – are impressive and the acquisition of Intereuropean Property Holdings has added a new portfolio, including the important Eros site at Piccadilly Circus.

Telephone answering

For the second year in succession the results of Ansafone have been outstandingly successful and in spite of competition at home and abroad the growth rate has been one of 40%.

Insurance

Two Bermudian companies were purchased by Marbarch Insurance Company and a new company, Bryanston Insurance, has been established. Subsidiaries have been set up in Australia, Hong Kong and Gibraltar, and trading has been profitable throughout.

Jetsave

The Group acquired an 85% stake in Jetsave, a company which is both a pioneer and a leader in the rapidly growing field of trans-Atlantic holiday travel.

The post ATV financial results: 1980 appeared first on THIS IS ATV NETWORK from Transdiffusion.

Lord Grade of Elstree, Chairman and Chief Executive of the international group spanning TV・Theatres・Cinemas・Music Publishing・Films・Records and Tapes・Property・Theatrical Costumiers・Ansafone・Insurance, and Merchandising says…

“I foresee another year of widening opportunity”

For the third time in succession, I am happy to be able to report the highest profit figure in the twenty-four year history of the company.

At £16.3 million [£76.3m in today’s money allowing for inflation – Ed] the profit before tax for 1978/79 is 19% higher than the previous record of £13.7 million [£64.1m] achieved last year and represents an increase of no less than 46% on the result for 1976/77.

Our earnings per “A” ordinary stock unit after taxation were 16.77p [78.48p] (1977/78 16.83p [78.76p]) and the total dividend of 8p [37.44p] per unit recommended by the Board was declared at the Annual General Meeting on 13th September. An interim dividend of 3.1p [14.51p] was paid in March and a final dividend of 4.9p [22.93p] will be paid on 1st October.

The activities of the company are now widely diversified and internationally based, and A.C.C.’s leading position in the field of world entertainment is now acknowledged everywhere. In the light of present performance and prospects I foresee another year of widening opportunity.

Television

ATV Network has enjoyed another distinguished year including winning the British Academy for Film and Television Arts award for the best documentary programme of the year. The Muppets, of which 72 episodes have already been shown in well over 100 countries, is about to enter its fourth series.

There has also been a steady build up of local coverage. In order to strengthen this service a News and Information Centre has been established in Nottingham and a similar centre will be opened in Oxford during the current year.

To meet the increased production required from ATV Centre £1½ million [£7m] will be spent on technical equipment this year in addition to the capital investment of approximately £1 million [£4.7m] made last year and there have also been additions to both staff and premises.

Film Production

Our American distribution has been placed on an entirely new footing by the formation of a new American company, Associated Film Distribution, set up jointly with EMI to handle new productions with “Firepower” as first of the Spring releases.

Films made under the Marble Arch banner have been sold both to the American networks and for financial release.

The Group now embraces one of the most extensive film-making and film distribution organisations in the world, and I regard the prospects of this aspect of our activities as most encouraging.

Thirty major films including “Capricorn One”, “Boys From Brazil”, “Autumn Sonata”, “Voyage of the Damned”, “Movie Movie”, “Escape to Athena” and “Firepower” are now in international distribution, and will continue as a major source of revenue for years to come. Already the full-length film of “The Muppets” promises to be one of the year’s world-beaters. The mammoth spectacular, “Raise the Titanic”, is in production and will be released next summer.

Theatre

Despite the terrible winter weather the Theatres Division has enjoyed its most successful year.

At the Theatre Royal Drury Lane, “A Chorus Line” ran into its third year; “Filumena” has enjoyed more than 700 performances at the Lyric; “Annie”, at the Victoria Palace, is clearly a record-breaker in the making; “Aladdin”, with Danny La Rue as its star, was the acknowledged attraction of the Christmas season and the Palladium production of “The King and I”, starring Yul Brynner and Virginia McKenna is the major event of the London theatrical season.

Music Publishing, Records & Tapes

The ATV Music Group has once again produced record profits. During the year there has been further progress along three principal current lines of policy. These are the signing of new, and development of existing, signed [sic] writers; the building-up of one of the world’s most extensive background music libraries and the acquisition or creation of directly owned subsidiaries overseas, including the establishment of new subsidiaries in Canada and Italy.

Although the record industry suffered a second year of recession, the strength of the company’s catalogue, both in terms of established artists and fresh talent, gives confidence for the future.

Property

Bentray properties are located throughout the whole of the United Kingdom and profits have risen from £2.52 million [£11.8m] to £3.46 million [£16.2m] – an increase of 37%.

Important new developments include the rebuilding of numbers 37, 38 and 39 St. Martin’s Lane to include a restaurant, a public house, shops and approximately 10,000 sq. ft. of office space.

We have also acquired a unique site of 1¼ acres in the prime area adjoining Shaftesbury Avenue and Piccadilly Circus. Plans have been approved for the erection of a lavishly equipped entertainment centre for the showing of the most ambitious stage spectaculars, and the doors will open in the early 1980’s.

Other Interests

Ansafone achieved truly remarkable trading results with profits exceeding £1 million [£4.7m] for the first time – an increase of no less than 154%.

Bermans & Nathans, the theatrical costumiers achieved the distinction of receiving The Queen’s Award for Export.

ATV Licensing, one of out liveliest subsidiaries, increased its profits by 15% and our subsidiaries concerned with insurance and commercial leasing operated profitably and efficiently.

Copies of the full Report and Accounts for the year to 31st March 1979 are available from the Secretary, Associated Communications Corporation Limited, ACC House, 17 Great Cumberland Place, London W1A 1AG.

The post ATV financial results: 1979 appeared first on THIS IS ATV NETWORK from Transdiffusion.

Associated Television Corporation
now, in view of its highly diversified activities, renamed
Associated Communications Corporation

‘I am anticipating new record profits in our current financial year’

Review of the year to 26 March 1978

For the third year in succession the figure of profit has risen most significantly.

The 1977/78 profit before tax of £13,700,000 [£71.1m in today’s money allowing for inflation – Ed] is 22% higher than for the year 1976/77 which was, at the time, the highest in the history of the Company.

Comparison with the preceding year, 1975/76, is even more striking inasmuch as the 1977/78 profit shows a rise of no less than 122%.

Profit after tax attributable to members is £8,050,000 [£41.8m].

Once again the Group Results amply justify the confidence which I expressed in my last Annual Statement, and I have every reason to enjoy that same confidence today. I am happy to be able to say that all divisions in the Corporation are trading profitably.

Earnings and Dividends

For 1977/78 the earnings per “A” stock unit after taxation were 16.83p [87.35p] (1976/77 – 14.68p [76.19p]). Accordingly, the Board is able to recommend a dividend of 6.606p [34.29p] per “A” stock unit, being the maximum permitted by the Treasury.

An interim dividend of 2.772p [14.39p] per unit was paid in March and a final dividend of 3.834p [19.9p] per unit (which reflects the reduction in the standard rate of income tax) was approved at the Annual General Meeting.

Tribute to Staff

My thanks are due to all staff at home and overseas – numbering nearly 5,000 – for the part they have played in building the Corporation to its present size and prominence.

Group Activities

Television

Despite the change of name of the Corporation, the name of ATV Network Ltd., which holds the Midlands franchise granted by the Independent Broadcasting Authority, remains unchanged.

ATV is most favourably placed. “Crossroads”, the ever-popular series of which the 3,000th episode was broadcast in August 1978, is produced in ATV’s Birmingham studios; and ATV’s up-to-the-minute topical programme, “ATV Today”, also a product of the ATV Centre, Birmingham, and already recognised as an outstanding service of Midland television news and information, is being still further strengthened by the setting up of regional news centres in Nottingham and Oxford respectively.

One of the year’s most notable and acclaimed programmes from the Midlands production team was Trevor Nunn’s two-and-a-half-hour musical version of Shakespeare’s “The Comedy of Errors”, specially recorded at the Royal Shakespeare Theatre, Stratford-on-Avon.

It is against this background of 339 hours of programmes produced in the Midlands that the Company’s national contribution produced in ATV’s other studio production centre at Elstree should be reviewed.

I need hardly say that, at the appropriate moment, ATV Network will automatically be applying for the continuation of the 7-day Midlands franchise which it has held since 1968, following on the 5-day Midlands franchise granted at the inception of Independent Television in 1954.

Film Production

ATV Corporation, through its ITC Entertainment subsidiaries, is already one of the world’s major film producers, and over the years I have been at pains to stress the large-scale investment required to finance film production. It is therefore highly gratifying to be able to draw attention to this year’s earnings from the film division, and to remind shareholders that the flow of revenue from this source is just beginning.

In order to streamline the marketing operation of ITC Entertainment films, a new subsidiary – ITC Film Distributors Ltd. – has been formed.

The setting up of a new American subsidiary, Marble Arch Productions Inc., marks yet a further stage in the Corporation’s progress.

Theatre

The Stoll-Moss Theatre Group had a most successful year. “A Chorus Line” continued to break all records at the Theatre Royal Drury Lane. In addition, the past ten months have seen such productions as “Filumena”, “Cause Celebré”, The Old Country”, “Donkey’s Year”, “The Kingfisher”, and “The Rear Column”. Our new international star policy has brought many of the world’s most famous artists to the London Palladium, including Bing Crosby, Sammy David Junior, Julie Andrews, Shirley MacLaine and Liberace, as well as the record-breaking American musical, “Annie”, to the Victoria Palace.

Music Publishing, Records and Tapes

Music publishing has enjoyed an excellent year. There has been a substantial investment in the development of a background music library and considerable effort has been made in the development and encouragement of new writers.

In the UK, ATV Music was placed in the top three music publishers for 1977 by “Music Week”, and our USA company had its most successful year to date.

The Results of Pye Records showed further improvement, with The Brotherhood of Man and The Muppets scoring notable successes.

Other Interests

Property

Bentray Investments has made conspicuous progress and now ranks among the outstanding property-owning companies in the UK. Profits over the past three years have risen by no less than 45% and the valuation of Bentray’s assets, recently completed by outside valuers, shows an increase of over £11 million [£57.1m] in the period.

Theatrical Costumiers

Bermans & Nathans, our theatrical costumiers, has shown steady improvement with a continuing development of its export business.

Telephone Answering

Following the reorganisation at Ansafone, previous losses have been converted into a profit and we expect the current year to produce record results.

Insurance

The Marbarch Insurance Group is trading profitably and we plan considerable developments both at home and overseas.

Licensing

ATV Licensing made excellent progress in all fields and is one of our most rapidly expanding subsidiaries.

Copies of the Report and Accounts are available from The Secretary, Associated Communications Corporation Limited, 17 Great Cumberland Place, London W1A 1AG.

The post ATV financial results: 1978 appeared first on THIS IS ATV NETWORK from Transdiffusion.

the International Group spanning TV, Theatres, Theatrical Costumiers, Films, Music Publishing, Records and Tapes, Property, Insurance, Ansafone and Merchandising

‘Pretax profits are up by 81% to all time record’

Review of the year

The results speak for themselves. The pre-tax profit figure is £11,161,000 [£32.3m in today’s money allowing for inflation – Ed], the highest in the year history of the company, and shows an increase of 81% over 1976.

The improvement in the Group Profit may be attributed in the main to two causes: first, to the resurgence in television advertising revenue and secondly, to the very substantial contribution made this year by the Corporation’s film division.

I can also confirm that all the main divisions within the Group are currently thriving and look well set for the future.

Directors

ATV Corporation

Mr. Jack Gill, C.B.E., already my Deputy Chairman, has, in addition, been appointed Deputy Chief Executive of the Corporation. Mr. Gill’s new designation thus gives public recognition to the part which he has played in building up ATV’s prosperity.

Mr. Norman Collins, who has held the position of Deputy Chairman from the inception of the Company, now gives up that post, but I am most happy to say he has agreed to remain a member of the Board.

I have been most happy, also, to appoint Mr. Louis Benjamin my other Deputy Chairman.

ATV Network

It is a condition of the franchise granted by the Independent Broadcasting Authority that 70 should be the maximum age for Directors of the licensed Companies.

Accordingly, while remaining Chairman and Chief Executive of Associated Television Corporation – the Group which embraces all the subsidiary activities – I shall be relinquishing my Chairmanship of the ATV Network Division of the Group on 1st October, 1977. I am delighted to say, however, that the Board of ATV Network has, with the full approval of the Authority, unanimously elected me to the post of President, and I am also fortunate in having Mr. Jack Gill, already my Deputy Chairman at ATV Network, ready to succeed me as Network Chairman.

Under the same age-rule of the Independent Broadcasting Authority, Mr. Norman Collins, a founder-member of the Company, will be retiring from the Network Board.

Television

As a result of improved transmitter coverage, ATV Network now serves an area extending from Stoke on Trent in the north to Oxford in the south, and from Hereford in the west to Peterborough in the east.

Due to the upturn in television advertising revenue, the profit of ATV Network, before tax, was £4,281,000 [£23.9m] against £1,945,000 [£10.9m] for 1976.

The financial revival of ATV Network should be seen against the background of the results for the year 1974/75 when the profit before tax had dropped to £1,677,000 [£9.4m].

The urgent and necessary economies which were introduced were not, however, at any time allowed to impinge on direct expenditure upon programmes.

In the result, the high standards of the service were fully maintained, and the year saw the presentation of such notable programmes as the six-part “Moses The Lawgiver”, and the irresistible, 24-episode series “The Muppet Show” – 1977 winner of the Golden Rose of Montreux Award.

The Annan Report

The long-awaited Annan Report on the future of broadcasting has now been published and I must thank Lord Annan for his welcome acceptance of the basic principles of Independent Television.

I must, nevertheless, admit to being disappointed that the Committee did not see fit to recommend that the available – and at the moment, entirely unutilised – fourth Channel should be allocated to the IBA.

Film Production

In my last two annual statements, I have been careful to draw attention to the magnitude of borrowings necessary to finance large scale film production and the inevitable time-lag between outlay and reward.

That reward, in very considerable measure, is now beginning to accrue with a contribution of £2,908,000 [£16.2m] this year.

Zeffirelli’s majestic production of “Jesus of Nazareth” was first shown in this country on Palm Sunday, 3 April 1977. It achieved immediate success both at home and abroad. In Britain, the audiences amounted to 21 million viewers; in the USA to over 91 million and in Italy 84% of the viewing public saw the film.

I have no hesitation in saying that this film, representing ATV’s largest single film-production investment, will prove an asset of inestimable worth to the company and provide a valuable annuity over the years to come.

Among the Film Division’s other successful releases, “The Return of the Pink Panther” has proved particularly outstanding. Further investment in film production is currently being undertaken in the light of up-to-date practical experience of the international market.

The overseas interests of ATV have during the past decade been steadily expanding. In consequence, the Group is now a large-scale earner of foreign currency.

Theatres

The Stoll-Moss Theatre Group enjoyed a most satisfactory year. Included amongst its outstanding achievements are the record-breaking “A Chorus Line” at the Theatre Royal, Drury Lane, and the musical hit, “Ipi Tombi”, at Her Majesty’s Theatre.

Moreover, the Group’s Shaftesbury Avenue theatres – Queens, Globe, Lyric and Apollo – all showed to best advantage, with long-running performances by such of our leading actors as Sir Alec Guinness and Sir John Mills, and with the work of many award-winning dramatists.

The twelve months at the London Palladium proved equally stimulating and successful. The new international star policy launched with Frank Sinatra in 1975, brought before the public such artists as Sammy Davis Jnr., Julie Andrews, Bing Crosby and Shirley Maclaine on her triumphant return visit; and the box office demand became overwhelming.

Music Publishing, Records and Tapes

Music publishing produced record profits with an increase of 21% against the previous year and there is every indication that the current year should again make a major contribution to the Group’s finances.

The decision has been taken to start new companies in the major territories outside USA and Switzerland, where we already have our own music publishing subsidiaries. We have therefore acquired a controlling interest in Allo Music in France and investigations are proceeding with the object of establishing companies in Germany and Italy.

The results of the Pye Records Group show improvement over the previous year despite a non-recurrent setback in the company’s trading in the United States.

Among the Pye artists who won international acclaim were the Brotherhood of Man with their 1976 Eurovision Song Contest winner “Save Your Kisses For Me”, and Max Bygraves and Lena Martell both earned top places in the overseas Charts.

Other Activities

It is a remarkable achievement that Bentray Investments should have increased its profits by nearly 20% in a year which was a notably difficult one for property companies.

A complete re-organisation has been undertaken at Ansafone and the new range of equipment being offered shows every sign of being able to meet the steadily growing demand.

Bermans & Nathans, our theatrical costumiers, are now trading profitably.

The Marbarch Insurance group is steadily expanding its business overseas and the whole outlook is most promising.

ATV Licensing has most enterprisingly expanded its activities. In addition to the wide range of “Space 1999”, a forthcoming range based on “The Muppet Show” and our own long established “Rupert Bear” should ensure another good year.

Tribute to Staff

Thanks are due to all directors and staff of the Group’s companies at home and abroad for their staunch support throughout the year. The growth of ATV is something of which we can all feel justly proud.

Group results at a glance

Year to 27 March 1977

Turnover rose from £69.2 million [£386m] to £89.3 million [£498.7m] an increase of 29%. After paying an increased television levy of £6.03 million [£33.7m] against £2.73 million [£15.3m] in 1976, the profit before taxation was £11,161,000 [£62.3m] (1976 – £6,151,000 [£34.4m]). Taxation accounted £4.75 million [£26.5m] (£3.17 million [£17.7m]), leaving a profit after tax of £6.41 million [£35.8m] (1976 – £2.98 million [£16.6m]). Earnings per ‘A’ stock unit were 15.32p [85.49p], an increase of 118.5% over for last year.

An interim dividend of 2.275p [12.69p] per ‘A’ stock unit, together with a final dividend of 3.099p [17.29p] to be paid on 3 October, makes a total of 5.374p [29.99p] per ‘A’ stock unit – the maximum permitted.

After paying these dividends, the profit retained in the business amounted to £3.82 million [£21.3m].

The post ATV financial results: 1977 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“The Company’s present position and prospects are both excellent”

• The improvement in the Group profit before taxation to £6,626,000 [£42.4m in today’s money allowing for inflation – Ed] is attributable to the greatly improved results achieved by the Film Division and the economic recovery which has taken place within Independent Television. Earnings per ‘A’ Stock Unit were 7.56p [48.47p] and the total dividend is 4.3p [27.56p].
• Strict internal economies were introduced at ATV Network in every field, except that of direct expenditure on programmes. These measures, combined with an intensive drive by the Network’s admirably-directed Sales Department and an upturn in the national expenditure on television advertising, succeeded in producing a profit of £2,409,000 [£15.4m].
• Our most important recent development has been the formation of a new Anglo-American company, Associated General Films, which will serve to consolidate our position as a major force in the international film industry.
• Profits from investment in a greatly expanded programme of film production – £1,139,000 [£7.3m] against £337,000 [£2.2m] – have exceeded our expectations and I can confirm that really substantial earnings will accrue this year.
• Music Publishing continues to be a major contributor to earnings and Pye Records finished the year in spectacular style by winning the Eurovision song contest.
• In a year generally regarded as a difficult one for the theatre, Stoll-Moss has succeeded in coming forward with improved results.
• Our property company now owns some 1.8 million sq. ft. of lettable space and we have let twenty-four of the twenty-seven floors in the ATV tower block in Birmingham.
• Our policy of diversification has once more fully justified itself.

Copies of the Report and Accounts for the year to 28 March 1976 are available from the Secretary, Associated Television Corporation Limited, ATV House, 17 Great Cumberland Place, London W1A 1AG.

This illustration depicts some of ATV Corporation’s interests. In addition to the seven day-a-week television franchise for the Midlands, group activities include film making, theatres, record, tape and music publishing companies, and the manufacture and supply of telephone answering equipment. The Group’s prestige tower block in Birmingham – the ATV Centre – is also shown.

The post ATV financial results: 1976 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“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.

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

The post ATV financial results: 1975 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“ATV Network remains the keystone of the Company’s operations. Nevertheless it is my firm intention that the corporation should comprise a wide variety of operations all with strong potential”

Results and Dividend

I am pleased to be able to report a Group Profit of £7,268,000 [£65.5m in today’s money allowing for inflation – Ed] before taxation which is marginally above the record profit made last year. The earnings per ‘A’ Ordinary Unit after taxation were 8.64p [77.85p] (1972/73, 10.42p [93.88p]). Your Board has decided to recommend an increase of the dividend to 5.125705p [46.18p] per ‘A’ Stock unit. This is equivalent to an increase of 5 per cent in the rate of the dividend (the maximum permitted under Phase III of the Government’s Counter-Inflation Legislation) making a total for the year of 30.067 per cent.

Television

In the year under review the prosperity of your Company clearly reflected the economic state of the nation. It was thus a year of sharply contrasting fortune. The first nine months proved highly profitable. Indeed, if the results for that period could have been maintained, the figure of profit would have been conspicuously the highest in the Company’s history. The final quarter, however, spanned the disastrous weeks of the energy crisis. ATV Network, in particular, was gravely hit.

Here it should be borne in mind that, in the past, the operation of the television franchise has been responsible for approximately half the profits of the Corporation. It therefore speaks highly for the healthy state of the other diversified activities that the figure for Group profit should remain virtually unaffected.

I am happy, moreover, to be able to say that the severe setback suffered by Commercial Television in the winter of 1973 and the early spring of 1974 proved to be only temporary. Confidence in the medium as an essential element in efficient salesmanship has been re-affirmed by the manufacturers, and the advertising revenue of ATV Network already shows full recovery.

Your Board welcomes the statement by the Authority that, subject to appraisal during 1974 of the performance of the Companies, no change in the present allocation of franchises will be made before 1979.

Diversification

Your Board has vigorously pursued its policy of expansion into other fields, and future possible acquisitions are constantly being investigated. The acquisition last year of 80 per cent of Ansafone Holdings Ltd. has abundantly justified such a policy. Elsewhere, there has been steady growth in the principal divisions already within the Group.

Film Production

Your film producing and distributing subsidiaries ITC–Incorporated Television Company Ltd., Independent Television Corporation (U.S.A.), and ITC of Canada — have all been exceptionally active.

Theatres

Despite the dislocation caused by the power cuts, petrol shortages and impaired train services during the winter months of 1973/74, your subsidiary Stoll Theatres Corporation Ltd. enjoyed a reasonably satisfactory year.

Records, Tapes and Music Publishing

Your record company, Pye Records, and your cassette and cartridge tape company, Precision Tapes, have both experienced exceptional success. Together with ATVs music publishing operations, they have returned a profit 83 per cent higher than last year’s at a figure of £2,502,000 [£22.6m].

Property

The results of your property subsidiary, Bentray Investments, have been most satisfactory, and your major development, ATV Centre, Birmingham, is now a valuable contribution to Group finances.

The post ATV financial results: 1974 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“Pretax profit highest in Group’s 17-year history”

The Seventeenth Annual General Meeting of Associated Television Corporation Limited was held in London on September 28th 1971. The following are extracts from the Statement by the Chairman, Lord Renwick of Coombe, K.B.E., for the year ended 26th March, 1972:

Results

The Group Profit of £6,240,000 [£70.3m in today’s money allowing for inflation – Ed] before taxation is the highest in the 17-year-old history of your Company.

This wholly admirable result shows an improvement of 27 per cent on the profit for the preceding year and fully justifies the confidence which I expressed at the time of the half-yearly interim statement.

This confidence remains unimpaired. Accordingly, your Board has recommended an increase in the total dividend for the year from 28½ per cent to 30 per cent, and proposes to recommend an increase in the Corporation’s share capital and a scrip issue.

Approximately half the Group Profit was derived from the Network operation and half from diversified activities. This is entirely healthy. And it is in both these fields that a continuing growth is to be foreseen.

Prospects for Television

From the Autumn of this year, the enforced restriction on broadcasting hours will be lifted, and ATV Network will be able to transmit programmes from mid-day onwards and thus provide the housewife with a full afternoon service of news, entertainment and information. This long-awaited development in the ATV Network operation is something which your Board has always been seeking.

The lifting of the restriction will mean that Independent Television in the Midlands will be on the air for an extra 40 hours a week. This extension of the Service will offer entirely fresh opportunities not only for new programmes, both local and national, but also for both new and established local and national advertisers.

The market demand is certainly unquestionable, and the extension of hours should be seen against the background of the year’s trading in which advertising revenue rose by nearly 14 per cent, from £14,255,000 [£160.5m] for 1970-71 to £16,232,000 [£182.8m] for 1971-72. It was this increased volume of sales, together with the reduction of Turnover Levy (£2,483,000 [£28m] for 1971-72 as against £3,865,000 [£43.5m] for 1970-71) which enabled the Network to do more than absorb the increase of nearly £600,000 [£6.8m] in the rental payable to the Authority.

Export Potential

Nor is large-scale growth foreseeable only in the operation of Television in the U.K. The export potential both for film series and for Special Programmes is enormous, and your production and distribution subsidiary ITC-Incorporated Television, and your American distribution subsidiary, Independent Television Corporation, are once again in a dominant position in the market. This situation could not have been achieved without a massive investment of some £7,000,000 [£78.8m]. Benefits from the income generated by this investment will be reflected in the current and subsequent years.

The other main subsidiaries are all in good order and offer assurance for the future.

Theatres

Stoll Theatres Corporation and Moss Empires enjoyed a year which fell only slightly below the previous record year and the present year promises well.

It remains to be said, however, that over the whole world of the theatre hangs the ominous question mark of Value Added Tax. If this tax — from which newspapers, for example, are to be completely exempted — is applied indiscriminately to the theatre, then the results will inevitably be far-reaching and deplorable. Such a tax, without alleviation, may well compel the eventual closure of certain Provincial theatres.

Records & Tapes

I am happy to be able to report that Pye Records has more than maintained its 10 per cent share of the total UK record production. Precision Tapes has, in its first two years of trading, achieved sales amounting to nearly one-third of the total UK market for tape cassettes and cartridges.

Music

Northern Songs’ music catalogue has been further strengthened by a new seven-year co-publishing agreement to cover future compositions with Paul and Linda McCartney. In order to rationalise, the whole of ATV’s interests are shortly to be re-grouped and controlled by ATV Music Limited.

Planned Music, which provides the Muzak service is also steadily expanding.

Indeed, within the Group the results of only two of the subsidiary companies, Ambassador Bowling and Bermans & Nathans, have proved disappointing.

Property & Investment

Of especial importance to the Corporation is your subsidiary, Bentray Investments Ltd., which is responsible for all ATV properties.

The last valuation of Land and Buildings was made in 1966, and a full re-valuation is being undertaken during the current year. This operation will serve not merely to enable a realistic figure to be quoted under Fixed Assets, but to provide a proper financial basis for the development of various of the Group’s valuable properties in London and elsewhere.

Up to date, Bentray’s major development — representing an investment of some £12,000,000 [£135m] — has been confined to Birmingham. The 29-storey, 200,000 square-foot office tower at ATV Centre will be available for tenancies by December.

In the Spring of 1973 the Holiday Inns Hotel at the Centre will be ready for occupation. During the coming year, therefore, the greater part of the whole six-acre complex will become revenue earning.

In June 1972, ATV’s holding of 4,290,000 shares in British Relay Wireless and Television Ltd., was disposed of for a profit before tax of £2,519,810 [£28.4m] and the cash inflow will serve most usefully to reduce current finance charges.

Directorate, Management and Staff

To the Corporation’s Deputy Chairman and Chief Executive, Sir Lew Grade, I must extend not only my thanks but my congratulations. ATV and Sir Lew are by now synonymous.

Finally, I extend my thanks to Management and Staff at all levels in Birmingham, Elstree, London, New York, Toronto, Sydney, Paris and Lausanne.

The post ATV financial results: 1972 appeared first on THIS IS ATV NETWORK from Transdiffusion.

The 14th Annual General Meeting of Associated Television Corporation Limited was held at ATV House. Great Cumberland Place. London, W.1. on 25th September, 1969 at 12 noon.

The following ore extracts from the Directors’ Report for the year ended 30th March, 1969.

Sir Lew Grade. Your Board was truly delighted to learn on January 1st that Her Majesty hod bestowed the honour of a knighthood upon Sir Lew Grade for his services to export. This wos a magnificent recognition of the untiring efforts Sir Lew has mode on behalf of your Corporation in overseas markets.

Queen’s Award. The Company’s 1968-69 year is memorable for another reason, for we were notified that your Company was to receive a second Queen’s Award to Industry for its export achievement.

GROUP RESULTS

The profit for the Group before levy and taxation is £11,042,000 [£152.5m in today’s money allowing for inflation – Ed] a decrease of £1,327,000 [£18.3m] from last year. After the payment of £5,431,000 [£75m] for Levy and £2,498,000 [£34.5m] in taxation, the Group profit is £3,113,000 [£43m], which is £300,000 [£4.1m] less than last year. The Board has considered these results and has decided to recommend a final dividend of 12.9625%, making the total distribution for the year 28.4625% (same).

Shareholders’ Funds are £24,238,000 [£334.8m], compared with £23,812,000 [£328.9m] for 1968.

BENEFITS OF DIVERSIFICATION

It must be recognised that ATV Network’s seven-day licence in the Midlands will be less profitable than the two-day London and five-day Midlands licence which ATV previously held. Not only is the income from advertising inherently lower, but servicing of the capital required to provide the new Midlands studios complete with equipment for colour, rising costs, the heavy incidence of S.E.T. and, above all, the increased rote of the Turnover Levy combine to produce a situation which cannot be regarded as other than financially unsatisfactory.

It is because the margin of profits of the television operation is bound to be severely reduced that your Directors are pleased to be able to report the success of their policy of diversification. In the year under review the profits of ATV’s non-television subsidiaries already amount to no less than 51% of your Group’s total profits and, in the current year, the advantages to your Corporation of planned expansion outside the television network operation will become increasingly apparent.

TELEVISION AND RELATED ACTIVITIES

New Midland Studios. We ore well pleased with the progress in completing our new television studios of Paradise Centre in Birmingham which will be available for transmissions from the target date next month. However, it will not be before the early part of 1970 that all parts of the Paradise Centre Television Studios will be fully operational.

Programmes. The centre of ATV Network’s activities is in its programmes. In spite of the many difficulties of the post year, ATV has once again produced a wide range of programmes of all types. There hove been indications of o reduction in the total amount of viewing for television programmes. The largest proportion of the decline has fallen to BBC programming in spite of its control of two channels ond monopoly of free advertising for its television programmes on BBC rodio. In the last six months, ATV Network’s proportion of the total television audience has risen substantially, ond now stands at approximately 56%, with BBC 1 and BBC 2 combined having 44%.

FILM PRODUCTION AND DISTRIBUTION

During the course of the year, this division of the Group further extended the already wide ranqe of its activities.

ITC’s sales effort embraces every category of film ond television programmes — from documentaries ond religion on the one hand through the whole range of drama series to international variety, sport ond feature films.

It is unprecedented for any British company to have four major variety shows and four filmed series on the American networks in the same year.

THEATRES

The Stoll Theatre Corporation has had another successful year. Total admission receipts were slightly up although, due to rising costs and in particular the unfair burden of S.E.T., profits were marginally down.

MERCHANDISING AND PUBLISHING

Your merchandising and general publishing activities are now grouped together under Century 21 Enterprises. The merchandising division has been successful in obtaining exploitation rights for properties both inside ond outside the field of television. We hove been appointed exclusive licensees to handle a majority of CBS properties in the U.K. A new children’s comic titled ‘Joe 90’ was successfully launched and ‘TV 21,’ our other children’s weekly, celebrated its fourth anniversory.

RECORDS AND MUSIC

Pye Records. During the year, we completed a re-equipment of our recording studios with the most modern equipment and we are now able to record in eight track. This technical improvement hos attracted a great deal of further business to our studios from other record companies and third parties.

New overseas licensing arrangements have been made in many overseas countries, including Japan, Denmark, India and Pakistan. We are also delighted to report that exports increased by 41% over the previous yeor.

Soho Record Shops. During the year we completed negotiations to acquire the remaining 49% of the Alex Strickland chain of retail shops called Soho Record Shops.

Other Developments. Negotiations hove been completed with General Recorded Tape Company of California to form a joint record company in the States and negotiations are progressing to form a joint company in the U.K. for the manufacture of recorded tapes, cartridges and cassettes. This is a development of major importance for our record ond music division.

Music Publishing. In line with our policy of planned expansion in the music publishing field, on agreement was reached for the purchase of a 32.1% share in Northern Songs, additional to the 2.7% which ATV already owned. As part of the agreement, an offer was made for the purchase of the remaining shareholding in the company. This offer has now lapsed and your Board is keeping the position under review. Meanwhile, Mr. Jack Gill and Mr. Louis Benjamin have been elected to the Board of Northern Songs to represent your interests.

Welbeck Music continues to flourish. It has extended its agreements with the Music Corporation of America and has also formed two new music companies with M.C.A.

PROPERTY AND INVESTMENT

Bentray’s first major development, Paradise Centre in Birmingham has got off to a good start. The television studios will be fully complete in the Autumn, approximately twelve months after a start was made.

We are now embarking on the second stage, the building of car parks, restaurant and multi-purpose Hall/Theatre together with some offices ond a canteen for ATV Network. The foundations of the tower block are also being laid at the present time and we hope this great feature in Birmingham will be completed in 1972. Negotiations for an hotel are also well advanced.

British Relay Wireless and Television Ltd. BRW, in which we have on important investment, continues to move steadily ahead. The Group is one of the largest rental and relay organisations in the U.K. and long-term prospects remain extremely bright.

Canada. During the year a contract was mode with Western Broadcasting Company of Vancouver to sell our investment holding company in Canada — Canastel Broadcasting Corporation — at a price around $2½million [C$20m]. The necessary Government consents have been obtained and completion was effected at the end of July. This sale represents a profit on the original investment of approximately $1 million [C$8m].

OTHER ACTIVITIES

Ambassador Bowling. In spite of the very adverse conditions in the Bowling Industry which resulted in the closure of twenty bowling centres operated by competitors, your subsidiary company, Ambassador Bowling, has remained profitable.

Planned Music. Soles of contracts for Muzak continue to improve and hove now reached a record level with a 20% rise on the preceding year.

Bermans. The post year turned out to be outstandingly successful for Bermans. Its profits increased by 70% to a record level. The Company’s established position as a leading costumier to the theatrical industry outside the United States has been further strengthened.

MANAGEMENT AND STAFF

The past year has been a difficult one for the United Kingdom’s economy as a whole and this has produced many snags and problems for the managements of your Group of Companies. In particular the problems arising in Independent Television have been extreme. Your Boord wishes to express its gratitude to the management of all ATV’s companies and their staff for their efforts over the past year.

The post ATV financial results: 1969 appeared first on THIS IS ATV NETWORK from Transdiffusion.

The 13th Annual General Meeting of Associated Television Corporation Limited was held at ATV House, Great Cumberland Place, London, W.1, on 26th September, 1968 at 12 noon.

The following are extracts from the Chairman’s Statement read at the meeting.

Since the year end we have been able to announce a further multi-million dollar U.S. deal for a new Millicent Martin television film series.

ATV Corporation is already one of the world’s greatest producers of filmed television series for international distribution. Current production costs run at some £7 million [£101.8m in today’s money allowing for inflation – Ed] a year and by 1970, when we will also be among the world’s greatest producers of feature films for international distribution, ATV’s annual expenditure will have been approximately doubled. Very large revenues indeed will by then be flowing in from overseas and these, of course, are in no way subject to the Turnover Levy which falls so heavily upon ATV Network.

A recent issue of The Financial Times quoted a table showing the major U.K. companies in order of merit judged by their net profit as a percentage of capital invested. We were delighted to see that ATV came fifteenth out of all British Industry. This is a very high tribute to your management team led by Mr Lew Grade our Chief Executive, Mr. Robin Gill our Managing Director and Mr. Jack Gill our Finance Director.

The financing of Paradise Centre and the Group’s general needs are being looked at with our advisers, so that we have the appropriate cash available for our planned expansion.

The following are extracts from the Directors Report for the year ended 31st March, 1968.

GROUP RESULTS

The profit for the Group, before Levy and taxation, is £12,369,000 [£179.8m], an increase of £530,000 [£7.7m] over the results of last year.

This improvement is more than offset, however, by the increased amount of Levy (£6,186,000 [£89.9m] this year as against £5,761,000 [£83.8m] last year) in respect of your Company’s ATV Network operation, and the increased amount of taxation (£2,770,000 [£40.3m] as against £2,348,000 [£34.1m] last year) for the Group as a whole. Levy and taxation together reduce the Group’s profit to £3,413,000 [£49.6m] which is £317,000 [£4.6m] less than last year.

In the light of these trading results, your Board nevertheless feels fully justified in recommending on increase in the rate of dividend for the year. The final dividend of 15.9625% will bring the total for the year to 28.4625% (as against 27.5% lost year). This represents the maximum increase permitted by the Treasury.

Shareholders’ funds are £23,812,000 [£346.2m], as against £22,708,000 [£330.1m] for 1967.

DIVERSIFICATION

The proportion of Group Profits attributable to Subsidiaries has, during the year, risen to 45% as against 42% in the previous year and 30% for the year 1965/66. Inspection of the Group’s Financial Statistics will, indeed, reveal that progress in the Group’s trading activities outside the TV operation has been both rapid and consistent, viz., the conversion of a net loss situation of £303,000 [£4.4m] in 1962 into a profit figure of £2,749,000 [£40m] in this year’s Accounts.

The value of Group Export sales for the year totalled £5,650,000 [£82.1m].

TELEVISION AND RELATED ACTIVITIES

New ITA Contract. ATV Network Limited was awarded the Independent Television Authority’s Contract for the Midlands Area for six years, commencing 30th July, 1968. This is the major Contract under the current allocation of the Independent Television Authority.

New Midlands Studios. By the end of 1969, the Television Studio portion of the new ‘Paradise Centre’ in Birmingham will be complete. These studios will be fully equipped for the start of Independent Television’s Colour transmissions at the end of 1969, and will be the most modem in the world. Every advantage will be token of the latest technological developments In the television field, and of our years of experience with colour programming at Elstree.

PROGRAMMES FOR ALL SEASONS

During the year your Company mode more than 1,000 contributions to the Network, and fully maintained its leading position among the Independent Television programme makers.

One programme, the Royal Variety Performance, established a new record. Designed as a charity show in aid of the Variety Artistes’ Benevolent Fund, and given in the presence of Her Majesty The Queen and His Royal Highness The Duke of Edinburgh, this production was seen in 11½ million homes, representing some 40 million viewers.

‘Spotlight,’ a production for CBS of America, and ‘Show Time,’ seen on the same trans-Atlantic network, were both among the Colour programmes produced in ATV studios. Indeed, in the whole matter of Colour, ATV has been to the forefront. Even while home-viewers could see ATV programmes only in black-and-white, the Documentary department has been producing in full Colour. One programme in particular, ‘The Last Shangri-La,’ has been internationally acclaimed for the beauty of its photography.

FILM PRODUCTION AND DISTRIBUTION

ITC—Incorporated Television Company. It is this company which is responsible for all ATV’s film productions, and for distribution of films and television programmes in the Eastern hemisphere.

The current production schedule is an unusually full one. No fewer than four series are currently being filmed. Sales, moreover, are fully abreast of production.

Independent Television Corporation. This company, which acts as distributor of ATV films and television programmes throughout the Western hemisphere, has enjoyed an outstanding 12 months’ trading. The current year promises to be equally rewarding. ATV Series ‘Man in a Suitcase,’ ‘The Saint,’ ‘The Prisoner,’ ‘Show Time,’ and ‘The Champions’ hove all been shown on the U.S. Networks.

Century 21 Productions. The puppet films made by Century 21 Productions are world-famous in television and cinema alike. A new TV series, ‘Joe 90,’ is now ready; ‘The Secret Service,’ a revolutionary piece of production in which a live actor doubles with his puppet counterpart, is already on the studio floor.

THEATRES

Stoll Theatres Corporation. This Group has enjoyed a record year. It is particularly pleasing to announce that your theatre, the London Coliseum, has now become the new Opera House for Sadler’s Wells.

RECORDS AND MUSIC

Pye Records. Pye Records had a conspicuously successful year with profits again reaching a new record level. In 48 weeks out of 52, it has appeared among the Top Twenty despite the increased efforts of American competitors.

Music Publishing. Our existing companies, Welbeck Music, New World Music and Jubilee Music, continue to produce excellent results, and active steps are being taken to enlarge the scope of our music publishing interests.

PROPERTY AND INVESTMENT

Properties. All the various property assets of the Group are being concentrated within our subsidiary company Bentray Investments Limited.

These properties make an exciting portfolio with every indication of steady income growth over the years. There ore also large-scale development possibilities in the long-term in connection with certain of them though, for the time being, there are Government restrictions on office development and building in city centres.

The first major development of Bentray will take place in Birmingham. This, the ‘Paradise Centre’ site adjacent to the Town Hall in the heart of the city, will ultimately comprise a 6-acre development which is unique in character, and the final cost could exceed £15 million [£218m].

Canada. Our investments in British Columbia Television and CJCH Halifax are held by our wholly owned subsidiary, Canastel Broodcasting Corporation.

British Columbia Television has commenced to pay dividends and the company has achieved excellent growth during the lost two or three years. In the cose of CJCH the progress is slower and the market a more difficult one. However, in our opinion the value of our investment is well protected.

OTHER ACTIVITIES

Ambassador Bowling. This company has continued to be profitable. Indeed, the general recession in the industry which has led to the closure of a number of competing bowling centres has proved a direct benefit to Ambassador Bowling.

Planned Music Group. Substantial progress was mode during the past year. It is calculated that approximately 3½ million people in the United Kingdom listen to Muzak every week, and this number is growing steadily. Worth-while contracts for the supply of equipment hove been obtained from Germany, Denmark, Switzerland, Norway and Israel.

Bermans. This company has hod the most successful year in its history. On the continent, Bermans is now recognised as the major film and theatrical costumiers of Europe.

MANAGEMENT AND STAFF

The Board wishes to express its most sincere thanks to those members of ATV’s staff at all levels who have so conscientiously served the Corporation during the past year.

The post ATV financial results: 1968 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“POLICY OF PLANNED EXPANSION WILL BE VIGOROUSLY PURSUED”

Before I comment on the year’s results — which, for the fourth successive occasion, I must describe as truly excellent — let me refer to four important events in your Company’s history.

(i)        ATV Network Ltd., your wholly-owned subsidiary, has been awarded the seven-day-a-week Contract for the Midlands from 30th July, 1968, for a period of six years. This is the major Contract offered by the Independent Television Authority.

(ii)        Associated Television, the first television, film and programme producing Group to be recognized in this way, has been honoured by being chosen as a recipient of the Queen’s Award to Industry for Export achievement in 1967.

(iii)        The range of your Company’s operations is now so extensive that your Board has felt for some time that a new title would be more proper Accordingly, it is being proposed that Associated Television Ltd., the parent Company of the Group, should be renamed Associated Television Corporation Ltd.

(iv)        Mr. Lew Grade has been appointed a Deputy Chairman and Chief Executive of your Company, and Mr. Robin Gill has been appointed Managing Director.

GROUP RESULTS

The consolidated Profit and Loss Account shows a profit for the Group, before Levy and taxation, of £11,838,787 [£179.3m in today’s money, allowing for inflation – Ed], an increase of £779,476 [£11.8m] over the results of the previous year (£11,059,311 [£167.5m]).

The Levy on Television Advertising Revenue amounts to £5,761,068 [£87.2m] and is £328,702 [£5m] higher than last year. After deducting this levy, the profit before taxation amounts to £6,077,719 [£92m] (last year £5,626,945 [£85.2m]).

Taxation for the year is £2,348,188 [£35.6m] as against the previous year’s figure of £2,780,325 [£42.1m]. After adding back £528,697 [£8m] in respect of a provision for depreciation no longer required, the Group profit after deducting the Levy and taxation amounts to £4,258,228 [£64.5m] as compared with £2,846,620 [£43.1m] last year.

The Shareholders’ funds, at £22,708,000 [£344m], are more than £5,000,000 [£75.7m] greater than at the end of the previous year. The total increase since 1963 now amounts to £12,589,000 [£190.7m].

ATV GROWTH FACTOR. In an article, entitled “British Business Growth League,” published in the June, 1967, issue of “Management Today,” ATV was shown as the top company in the country for percentage increase in pre-tax profit for the period 1957-66.

In the same article, ATV was included in the list of Top Ten companies for percentage increase both in net capital employed and gross cash flow for the same period.

FUTURE PROSPECTS. I must refer to the disturbing economic conditions which prevail, but in your Company’s affairs, two major factors, both highly encouraging, now colour the whole situation.

In the first place, the matter of the ATV Network Licence is satisfactorily settled, and your subsidiary’s profitable working into the mid-1970s can realistically be predicted.

Secondly, in the year under review, the non-licence operations within your Group contributed some 42% to the Company’s overall profits; and the high level of these non-licence earnings should be at least maintained.

I am able, therefore, to inform shareholders that I find both sides of your Company’s activities in good order, and can assure them that our announced policy of Planned Expansion will be vigorously pursued.

ATV NETWORK

THE NEW MIDLAND CONTRACT. I have already referred to the new seven-day-a-week Contract for the Midlands (10.4 million population) which the Authority has awarded to your Company.

This is the Contract for which your Company applied. It enables us to enlarge our long-standing interest in the Midlands, and also to maintain the greatest possible output of programmes for the national network.

From the outset of Independent Television, ATV has urged undivided weekly working as preferable in every way to the weekday/week-end split; and your Company is delighted that it will now be able to provide the unified and unbroken seven-day-a-week service which the Midland viewer deserves.

Shareholders will appreciate that the previous short Licence period of three years, the extension of one year, and uncertainties as to the future shape of Independent Television, rendered long term planning impossible. For the first time, your Company con see a clear course ahead of it, and a new studio complex will be erected. Plans for this were commissioned over three years ago. The studios will be the most up-to-date in the country and will be built with all the requirements of Colour in mind.

Now that the Authority has clarified the whole position, and ATV Network con concentrate its interest on the Midlands viewer, the Board of ATV Network will be strengthened by the addition of leading Midlands figures, and resident Executive Directors from within the Company.

I am very happy indeed that it should be Mr. Bill Ward, for so long one of the key men in ATV who becomes an Executive Director of ATV Network. Mr. Leonard Mathews, who, as Midlands Controller, has played such an important role for the Company, has also been appointed to the Board.

THE MIDLANDS. Both local and nationally networked programmes hove shown a notable increase during the past year.

The daily serial, “Crossroads,” continues to enjoy top programme ratings, and the televising of the 500th episode in 1966 was celebrated by a dinner in Birmingham attended by viewers drawn from all parts of the United Kingdom.

ATV’s weekday network programme for children, “Tingha and Tucker Club” — the most popular in British television — has been joined by a Sunday network programme, “Tree House Family,” which is now seen in over 4 million homes.

The new regular weekly programme, “Midland Member,” enables a Member of Parliament from one of the 107 constituencies in the area to give a first-hand account of the work at Westminster; this is now recognised os providing one of the most important political contributions to Midlands life.

The magazine programme, “ATV Today,” continues to attract an audience of well over three million viewers; and, during the year ATV’s film unit covered more than 70,000 miles in collecting items for “Midland News.” No fewer than 66 Midland news stories provided by ATV appeared in the national news service of ITN.

In co-operation with the Midlands Police Forces, ATV has presented 52 episodes of the weekly “Police Five” programme. Over 250 crimes have been reported, and the police regard the information provided by television viewers as responsible, in at least ten per cent of the cases, for the successful outcome of police enquiries.

For the fifth successive year, ATV’s presentation of the Royal Show from the National Agricultural Centre, Kenilworth, received nation-wide coveroge.

VIEWING HOURS. ATV shareholders and the viewing public at large should be aware of the fact that your Company, in common with all other Independent Television companies, is denied the right to provide the full and comprehensive service which it is naturally anxious to present. Hours of transmission ore rigidly restricted by order of the Postmaster General, and protests from the Company have proved unavailing. The Authority has listened sympathetically, and is fully aware of the extra programmes which your Company is seeking to provide. Your Company has all the facilities for the immediate provision of the extra hours. Nevertheless, the ban remains, in spite of the fact that the BBC with its two services now provides some thirty more hours of broadcasting each week than is permitted to Independent Television.

COLOUR. In my last Report I stressed the fact that the ATV Network studios at Elstree would, by the autumn of 1966, be fully equipped for Colour operations in the various international line standards. This has been accomplished, and major drama productions electronically recorded in Colour now include three plays, namely “Ivanov” with Sir John Gielgud; “The Tormentors” starring James Mason and Stanley Baker; and “Present Laughter” with Peter O’Toole and Honor Blackman.

Light entertainment productions in Colour include the two-hour programme, “The Heart of Show Business,” in aid of the Aberfan victims; a series of 13 one-hour productions, “Piccadilly Palace,” with Morecambe and Wise, and Millicent Martin; and a series of 26 one-hour programmes, “Spotlight,” with British, American, and other international star artists.

All these productions are additional to the Colour programmes on film, to which I have referred earlier, and to mony documentary programmes made in Colour. Taken together, they constitute the largest library of TV Colour productions in Great Britain.

I am delighted that one of our news film teams, Mr. Gary Hughes and Mr. Noel Smart, should have won the Bronze Medal in the “hard news” section of the 1966 British Television News Film awards. This is the second year running in which ATV network has won on award.

ALPHA STUDIOS, ASTON. ATV Midland transmissions are co-ordinated through the Presentation Centre of Aston, either for networking or for routing to the Authority’s transmitters at Lichfield and Membury.

The Alpha Studios accommodate nearly one hundred hours of rehearsals, recordings and transmissions each week.

SALES. During a year in which there was a standstill in television advertising rates under the tight economic conditions of the “Squeeze,” the Sales Department of ATV Network nonetheless achieved an increase in net revenue of some 4½%. This growth was accomplished in a year when total national advertising appropriations fell for the first time since 1946.

ATV Network has developed the whole scope of television advertising. Holiday Tours, Fashion, and the Big Stores ore all now represented on the London screen; and, in the Midlands, the service has been extended to small businesses, retail shops and garages. Local advertisements now amount to some 1,500 a year. Moreover, industry throughout the Midlands responded warmly to the introduction by ATV Network of a Staff Recruitment Bureau, and viewers have been informed of over 500 vacancies, ranging from drivers and clerks to management accountants and project engineers.

ATV’s “Midlands Merchandiser,” a trade paper for grocers, now reaches more than 8,000 shops, and provides the only service in the industry which forms a direct link between television and the retailer.

“TV WORLD.” The programme journal for the Midlands is owned jointly by ATV Network and ABC Television, and is published by Odhams Press.

From the outset, this magazine set up new publishing records. The circulation has risen steadily from 640,000 when the magazine first appeared in September, 1964, to the figure of over 737,000 at which it stands today. A long and prosperous future had, therefore, confidently been foreseen. Under a new ruling by the Authority, however, separate programme publications will cease after July, 1968, and a national weekly, with regional editions, published on behalf of all companies will supersede them.

I must, on behalf of viewers in the Midlands, enter a plea that the distinctive character and individuality of “TV WORLD” should be preserved intact in the new publication.

EXPORTS

QUEEN’S AWARD FOR EXPORT ACHIEVEMENT. “Her Majesty The Queen has been graciously pleased to confer Her Award in 1967 upon Associated Television Ltd., London, W.1, for export achievement” — I quote the wording of the official citation which gave the world of British entertainment its first Queen’s Award to Industry.

The formal presentation of the Award was made by Major-General Sir George Burns, Lord Lieutenant of the County of Hertfordshire. The ceremony, which the Postmaster-General and members of the Independent Television Authority attended, took place on 4th July in your Company’s Elstree Studios.

I will not attempt to conceal my feelings of pride when I first read the Royal message. Nor will I conceal the fact that I regard it, in unique degree, as public recognition of the untiring work and devotion over the years of one man, your joint Deputy Chairman and Chief Executive, Mr. Lew Grade.

Shareholders should know that the establishment of a television export market for films has been a long, arduous and, at the outset, a heart-breakingly frustrating business. One by one, Mr. Grade has overcome the objections raised by foreign buyers when offered British products; and it is not too much to say that, through his efforts, your subsidiary, Incorporated Television Company, is now one of the most sought-after production sources in the world.

Knowing the strains that are involved in the many and complex transactions I am glad to think that, on his visits abroad, Mr. Grade should have your Managing Director, Mr. Robin Gill, there beside him. Together I believe, they represent the world’s strongest partnership in television film production and international distribution.

ATV EXPORTS TODAY. The turnover figure for your Company’s export of television programmes continues to rise steadily. U.S. dollar sales have passed the $10,000,000 [$91.1m] mark and sales in the European Hemisphere have correspondingly increased. There is every indication that this present trend will not only be maintained, but will be improved upon.

INDEPENDENT TELEVISION CORPORATION. This year your Company will have no fewer than five Colour television series on the American networks. This is the highest number in the history of the Company. In addition, a number of individual plays and documentaries have been sold to the American networks.

These results in the United States could not have been achieved without your Company’s American subsidiary, Independent Television Corporation.

INCORPORATED TELEVISION COMPANY. Nor could these export results have been obtained had it not been for the magnificent work of your production group, Incorporated Television Company. The schedule of work in hand has never been so extensive as at the present moment, and the following series, all in Colour, are currently reaching completion: “Man in a Suitcase”; “The Prisoner”; “The Saint”; “Spotlight”; “Piccadilly Palace”; “The Champions.”

The wealth of British talent among producers, directors, script writers and actors available to I T C has led to a deal with United Artists for three feature films starring Roger Moore. Further feature film productions are in negotiation. All of these are for distribution to cinemas throughout the world.

In addition to its production activities, Incorporated Television Company is responsible for Eastern Hemisphere television sales where the year produced record results. Your company’s programmes are now being shown in 62 countries on this side of the Atlantic alone.

THEATRES

STOLL THEATRES CORPORATION. I am happy to be able to report that this Group, under the chairmanship of Mr. Prince Littler, has enjoyed another successful year.

The current production, “Fiddler On The Roof” at Her Majesty’s Theatre has proved a triumph, and “There’s A Girl In My Soup” at the Globe Theatre has established itself as one of the outstanding attractions of the West End stage. Earlier in the year the centre of theatrical London was to be found at the Queen’s Theatre, which housed Noel Coward’s “Suite In Three Keys,” and the National Theatre Season.

The London Palladium pantomime, “Cinderella,” again broke all records, and “The Black & White Minstrel Show” at the Victoria Palace continues undiminished into its sixth year.

The satisfactory results of the Stoll Theatres Corporation have been achieved despite the dual burdens of Selective Employment Tax and rising costs. Elsewhere in the West End, however, and among the provincial theatres the effects of rising costs and S.E.T. have been most damaging.

PROPERTIES — CENTURY 21 — PYE RECORDS — MUSIC PUBLISHING – MUZAK — BOWLING

PROPERTIES. During the year we have brought our many property interests together within Bentray Investments. We now have a steady programme of improvement and expansion planned for the years ahead.

CENTURY 21. On both sides of the Atlantic it is acknowledged that the “Thunderbirds” series of Gerry and Sylvia Anderson established entirely new levels in film-making ingenuity. Equally remarkable technical advances have now been achieved with a new range of puppets which will be seen for the first time in “Captain Scarlet,” a series of 32 half-hour episodes currently in production in Colour.

CENTURY 21 MERCHANDISING LTD. — PUBLISHING LTD. — TOYS LTD. The business of these three companies is the exploitation of subsidiary rights in television and motion picture properties.

In conjunction with City Magazines Ltd., a subsidiary of the “News of the World,” four children’s weeklies are now being produced and “TV Century 21” and “Lady Penelope” in particular enjoy outstanding success.

PYE RECORDS. The year’s trading has been highly satisfactory. Among Pye Records successes are the First and Second Prize winners in the Eurovision Song Contest. Pye Records has, furthermore, established its Marble Arch Label in the forefront of the growing market for lower-priced LPs.

Overseas, the sale of Pye Records has increased by nearly 9%.

MUSIC PUBLISHING. Our joint companies with Chappells are progressing well.

MUZAK. Over 180 leading companies, practically all household names in British industry, now have the Muzak service of background music installed in one or more of their premises. The rate of recruitment to the Muzak service is greater than at any previous time in the company’s history, and shows recognition of the fact that Muzak provides the only programmed background music service with completely non-repetitive new programmes every day.

AMBASSADOR BOWLING. This company continues to operate profitably despite reduced attendance at bowling centres throughout the country.

TOP DIRECTION — YOUR BOARD – INDUSTRIAL RELATIONS — ATV STAFF

TOP DIRECTION. The rate at which your Company has developed and the steadily widening scope of what I have referred to in earlier Reports as our policy of “Planned Expansion,” has necessitated a new framework at the top.

The new post of Chief Executive has been created, ond this will naturally be filled by Mr. Lew Grade. Knowing, as I do, what every phase of your Company’s activities owes to the brilliant direction of Mr. Grade, let me add that it is only fitting that he should also be appointed a Deputy Chairman of your Company.

The name of Mr. Grade is synonymous with the emergence, over little more than a decode, of the name of ATV as a Company of world-wide standing; and I am delighted to have this opportunity of congratulating him.

I can, moreover, regard myself as fortunate in having on the Board a Deputy Managing Director in the person of Mr. Robin Gill, to whom the wider duties of Managing Director can so confidently be entrusted. I om happy to add my thanks to Mr. Gill for the great part which he is playing in your Company’s affairs. The partnership between Mr. Grade ond Mr. Gill to which I have referred earlier in connection with our Overseas Sales, is one which I am happy to say extends also to every aspect of your Company’s business.

During the post year. Mr. Grade become Chairman of Independent Television’s Network Planning Committee, and Mr. Robin Gill hos been asked to continue for a further period as Chairman of the Independent Television Companies Association.

My thanks, too, must go to the Company’s Finance Director, Mr. Jack Gill whose contribution to the running of the Company has proved of immense value.

Finally, I have to report that, owing to other business commitments, Mr. R. P. T. Gibson has tendered his resignation from your Board. Mr. Gibson has been a Director of your Company since 1957, ond I om only sorry that this long connection should now be broken.

BOARD OF ASSOCIATED TELEVISION. Let me say how deeply appreciative I am of all the help which I have received over the year from the various members of your most distinguished and experienced Board.

INDUSTRIAL RELATIONS. Despite the unprecedented problems set by the Government’s Prices and Incomes policy, the Group has been able to continue its progressive approach towards the Unions, and has maintained good relations with its staff and with the Unions with which it negotiates.

A completely new system to productivity payments on the part of ATV Network Ltd. was worked out with the Unions and has been approved by the Ministry of Labour. New inter-Union arrangements were negotiated for Century 21 Productions, and these will eliminate various awkward lines of demarcation.

MANAGEMENT AND STAFF. My co-Directors join me in expressing their warmest thanks to everyone at all levels: Managerial staff, sales staff, accountancy staff and secretarial staff play their part equally with the technicians, the skilled craftsmen and the artistic producers and directors within the Company, and without their loyal and untiring efforts these admirable results could never have been attained.

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