JUST what is ITC and what does it do? One of the vagaries of ATV House is that there is no ground floor through-way between the eastern and western halves of the building. Maybe this is one of the reasons so many members of ATV themselves have little idea of what is happening in the western sector, occupied by ITC.

The initials stand for Incorporated Television Company.

It is a wholly owned subsidiary of ATV , and it has a dual function.

ITC is responsible for all the film series — such as “William Tell”, “The Invisible Man”, “Danger Man”, “Supercar” and “Sir Francis Drake” — for ATV. It is also responsible for the sales of all ATV-produced programmes throughout the world.

The ATV organisation leads the way in the international sales of television product, through ITC, London and ITC (Independent Television Corporation) New York, the latter with a team of salesmen selling to stations throughout America and covering the Western hemisphere. The company has agents in Germany, Italy, France, Spain, Thailand, Japan, Manilla, Canada and Australia, as well as many others. It is the largest integrated organisation in the world for the distribution of TV programmes.

All over the world people are watching ATV. Overseas sales of the Company’s products, through its subsidiary ITC, now exceed 3,750 different programmes.

We are therefore playing an important part in Britain’s export trade, bringing into the country much needed foreign currency — a fact which is all too frequently forgotten by our critics.

PIONEERING

ATV decided six years ago to make a long-term investment by planning to break into world markets almost before they existed. Even today, the full potential has by no means been reached. Almost every week, new television stations are being opened in various parts of the globe.

It was obvious that television film series could not be made as economic propositions for showing only in our country. To get their money back, they would have to penetrate markets which would come into existence in the years to follow. The production of these series therefore represented a heavy ATV investment in the future.

This pioneering has resulted in an organisation which is now taking ATV programmes to almost every country.

The “Adventures of Robin Hood” series first broke the ice in smashing into the American market. More recently, our “Danger Man” series has won a new regard for British-made product in the United States and elsewhere, and “Sir Francis Drake” has just been bought for peak-hour network showing by N.B.C.

“Supercar” is also enjoying phenomenal and rapidly increasing success in America, with the result that ITC has just embarked on a new puppet series. “Fireball XL-5”, which is being produced by the “Supercar” team.

Mike Nidorf, president of ITC in America, is now visiting London, and is more enthusiastic than ever about the future of our product in the States. “It’s a hard battle”, he points out, “The American attitude is, ‘We’ve got enough of our own mediocre material without having to take any from other countries. But give us something that’s really good, and we’ll be glad to take it’. They are so pleased with ‘Supercar’ and ‘Danger Man’ that we now have greater opportunities than ever. From what I can judge of ‘Man of the World’, ‘The Saint’ and ‘Fireball’, we’ll really be going into orbit this year!”

“Man of the World” is now in production at Shepperton Studios with Craig Stevens starring, and “The Saint”, with Roger Moore in the title role, is being made at the ABPC Studios, Elstree. Both are one-hour shows of twenty-six episodes.

DUBBED

Many of our programmes are “dubbed” into French, Spanish, German, Portuguese and Italian.

Our shows can be seen on TV screens in such areas as Arabia, Australia, Austria, Belgium, Bermuda, Canada, Cyprus, Denmark, Egypt, Finland, France, Germany, Gibraltar, Holland, Hong Kong, Iran, Iraq, Italy, Japan, Lebanon, Luxembourg, Malta, New Zealand, Nigeria, Norway, Poland, the Philippines, Portugal, Spain, Rhodesia, Sweden, Switzerland, Thailand, Yugoslavia, Monaco and Czechoslovakia.

The adventures of John Drake in “Danger Man” are being followed just as avidly in such countries as Sweden, Poland, Germany and Portugal as they are in Britain. In Thailand the children are enjoying “Noddy in Toyland”. In Egypt and Japan they thrill to the adventures of William Tell.

DOCUMENTARIES

Sales abroad are not restricted to fictional TV programmes. Several of the documentaries we have made are being shown on overseas screens. Australia, Finland, Germany, Hong-Kong, Hungary, Malta, Norway and Sweden have all bought the brilliant documentary ATV producer James Bredin made in South America earlier this year.

ITC is right on the spot wherever new stations are opened, as with the new one at Lagos, Nigeria; another in Northern Rhodesia; one in Malta, and another in Gibraltar; and the soon-to-be-opened stations in Sierra Leone, Trinidad, and Nairobi. Australia has plans for several new stations as well.

If you’re working on programmes for ATV, don’t imagine that only home audiences are going to see them. You’re making them for viewers right the way round the world!

Our other interests

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THE work of ITC is only one of the ways in which the Company has been able to diversify its interests beyond that of being television contractor for London at the weekends and the Midlands, Monday to Friday.

Other companies in which ATV is concerned include:

ATV (Australia) Pty. Ltd.: This is a wholly owned subsidiary which has been operating for nearly four years in Sydney. It has holdings in seven radio stations and participates in the Australia-wide Macquarie Radio Network. Through a subsidiary called Artransa radio programmes are produced and sold in many countries outside Australia. ATV (Australia) also has interests in eight television stations in places such as Sydney, Adelaide and Brisbane.

Planned Musk Ltd.: All over Britain people in offices, factories, shops and restaurants are listening every day to Muzak — a selected programme of music piped to them direct from several centres which have been set up. This company was started as an ATV subsidiary over three years ago.

Pye Records Ltd.: The Company owns 50 per cent of this, the third largest record company in the country.

British Relay Wireless & Television: ATV has more than two million shares in this company which serves 17 metropolitan boroughs in London with wired TV and radio and has networks covering extensive areas of the West Midlands, Yorkshire and Scotland. Big plans for participation in coin-in-the-slot TV, when permitted by law, have recently been announced by BRW.

Canastel Broadcasting Co. Ltd.: A wholly owned company in Halifax, Nova Scotia which has investments in radio and television stations at Halifax and in a Vancouver TV station, and also the company which supervises the networking of programmes in Canada.

Ambassador Bowling Ltd.: This company has been formed to cater for the ten-pin bowling enthusiasts. A centre has been opened at Ipswich and another will shortly come into operation at Stevenage, Herts. Other centres are also planned.

The post World Sales for our Shows 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.

“Altogether a most excellent year….”

The Fifteenth Annual General Meeting of Associated Television Corporation Limited was held at ATV House, Great Cumberland Place, London, W.1. on 24th September, 1970, at 12 noon.

The following are extracts from the Statement by the Chairman, Lord Renwick of Coombe, KBE, for the year ended 29th March, 1970:-

Not only is the Group profit (after levy but before taxation) of £5,635,000 [£73.5m] the fourth highest in ATV’s history, but this outstanding result has been achieved despite the fact that the profit from your television subsidiary, ATV Network, has fallen away by no less than £2,152,000 [£28.1m].

In short, the Corporation’s long pursued policy of planned expansion in the entertainment industry is now reaping the reward of earlier long-term investment, and the warning in my last Annual Report of the impending unhealthy state of Independent Television has been sadly kustified.

I will deal later with the causes, mostly foreseeable but unfortunately beyond the Board’s control, of the current decline in the television Industry. For the moment I will confine myself to those aspects of the Group where there is every indication of continuing prosperity.

FILMS. First must come film production and distribution which contribute no less than 41% to the Group profit. The success in this sphere of your subsidiary companies, Independent Television Corporation of America and Incorporated Television Company Limited of England, represents an altogether remarkable personal achievement on the part of the Group’s Chief Executive and Managing Director, Sir Lew Grade. Until the mid-sixties, British-made television production was regarded as virtually unsaleable in the United States. The degree to which a transformation has occurred may be judged from an article in the April issue of America’s leading entertainment journal, “Variety.” I will quote the opening paragraph;

“Sir Lew Grade may do single-handedly to American television what it took four strapping Liverpool boys to do to American popular music. The British video impresario, who heads Associated Television there, is all by himself the first major foreign influence in the hitherto all-American tele industry.”

MUSIC. Equally gratifying have been the results of ATV’s expansion into music publishing. With the acquisition of Northern Songs, which owns the musical copyrights of Lennon and McCartney, your Corporation now possesses a commanding property. Profits of Northern Songs for the eleven months to the end of March, 1970, considerably exceed the profits for the preceding full year, and the volume of business is steadily increasing.

Taken in conjunction with Pye Records, which continues to hold an important and growing position in the international disc market, ATV’s operations in music and records are now firmly and broadly based. The profits from this division amount to 32% of the Group’s total.

THEATRES. ATV’s theatrical interests are of key importance within the Group, and the Stoll Theatres Corporation and its subsidiary, Moss Empires, under the chairmanship of Mr. Prince Littler, have once again enjoyed a good year. I am pleased, moreover, to be able to report that results for the current year are substantially better than for the year under review.

CRISIS IN THE TELEVISION INDUSTRY

In July, 1969, the rate of Turnover Levy was increased to a level calculated to extract a further £3 million from the industry. This, as I had already given warning would happen, immediately produced a crisis which changed the whole financial structure of Independent Television and endangered the very existence of some companies not protected by diversified operations.

In April, 1970, the Turnover Levy rate was amended to provide for a remission of £5 million. This purely stop-gap relief was, however, offset by the fact that over the year 1969/70 national television advertising revenue had itself declined by some £5 million. This decline is symptomatic of the state of the country’s economy. It is not possible to forecast the date by which the Government will feel able to take measures to raise, rather than to depress, the level of domestic spending upon which all domestic advertising depends. What is possible to forecast is the date by which the Independent Television industry will find itself unable to finance its increasingly costly operations. This date is 1971.

TURNOVER LEVY. Clearly, the Turnover Levy, which is imposed on revenue, and is required to be paid before meeting operational expenses and before paying Corporation Tax on profits (if there are any), should be abolished altogether leaving the Television Companies to make their contribution to the Exchequer entirely through Corporation Tax in the usual way. This would remove the invidiousness of a discriminatory levy imposed upon a single industry, and would place Independent Television upon an equal footing with all other commercial operations. On this basis – and on this basis alone – can the return both to shareholders in Independent Television Companies and to the Exchequer be made fair and equitable.

BROADCASTING HOURS. Because of the limitation on broadcasting hours, ATV Network alone is denied extra revenue of not less than £½ million [£6.5m] per annum. Any review of Independent Television must take into account the effect on the industry of the new major franchise — Yorkshire — granted by the Authority in 1968. While we welcome this recognition of Yorkshire’s independent status, it cannot be overlooked that the introduction of a fresh contributor to the Independent Television network has meant that other contributing companies have been left with considerable under-utilized studio facilities.

The redistribution of franchises in 1968 brought with it, moreover, heavy capital demands on some companies for the provision of new studios. ATV Network’s own development in Birmingham, for example, has called for some £6 million [£78.2m]; and this capital investment comes on top of some £1.5 million [£19.6m] previously required for the conversion of ATV’s Elstree studios to Colour on the 625-line standard.

Finally, rising costs — not least labour costs – within the industry continue to erode and, in many instances, entirely erase the narrow margin of profit which remains after the payment of the Levy.

AWAITING GOVERNMENT ACTION. The Independent Television Authority is no less concerned than the companies at the gravity of the situation which has arisen, and all the figures for the industry have been submitted for investigation by the Prices and Incomes Board. It is not too much to say that the whole future of Independent Television now depends action by the Prices and Incomes Board, the Chancellor of the Exchequer and the Minister of Posts and Telecommunications.

MANAGEMENT AND STAFF

On behalf of the Board, I pass on my thanks and appreciation to members of the Management and Staff at all levels.

The post ATV financial results: 1970 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.

The post ATV financial results: 1967 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“An Excellent Year”

The Ninth Annual General Meeting of Associated Television Limited will be held on Thursday, 10th September, 1964, at 12 noon at ATV House, Great Cumberland Place, London, W.1.

The following are extracts from the circulated statement by the Chairman, Sir Robert Renwick, Bt., K.B.E. :-

On the 7th January, 1964, the Independent Television Authority informed your Company that the licence to broadcast in London on the week-ends and in the Midlands during the week-days was to be renewed after the expiry of the present licence on the 29th July of this year.

In the light of that event, it is all the more gratifying to be able to report an excellent year’s trading both in the home market and in the export field; and I may add that I have every confidence in your Company’s prospects for the ensuing year. The profit of the Group before taxation is £5,460,424 [£91.9m in today’s money allowing for inflation – Ed]. It will be noticed that the profit stands £2,054,710 [£34.6m] higher than for the 11 months of the Company’s 1962/63 financial period.

Your Board recommends the capitalisation of £4,650,000 [£78.3m] to be applied in paying up in full 18,600,000 “A” Ordinary Stock Units of 5s. each to be issued to Ordinary Shareholders and “A” Ordinary Stockholders on the basis of 4 “A” Ordinary Stock Units for every £1 Ordinary Share and 1 “A” Ordinary Stock Unit for every “A” Ordinary Stock Unit held by them respectively on 12th August, 1964. This will necessitate an increase in the authorised capital of the Company.

NEW LICENCE

The renewal of your Company’s licence is for three years from the 29th July, 1964, or until the opening of a second Independent Television Service, whichever shall be the sooner.

The licence provides that, if the date for the start of the second Independent Television Service should be after July 1967, the Authority may (subject to a review of rentals) extend the existing licence for a maximum period of a further three years. The immediate uncertainties which had been hanging over the whole television industry have thus been removed, and your own Company has been able to re-organise its operations in readiness to meet the changed conditions of the future.

The terms of the new licence which came into effect at the end of July of this year do not by any means follow the lines of the licence under which your Company has been operating since 1954. Quite the contrary, in fact.

First the levy on turnover, against which I had protested so strongly when the Government’s White Paper appeared in March 1963, begins to apply in August 1964. The amount of this levy on turnover – additional, it must be remembered, to normal income tax and profits tax – will, as far as can be judged, amount to something in the order of £4,500,000 [£75.8m] on a full year’s trading.

There is, admittedly, some respite inasmuch as, in the financial year 1964/65, only 8 months of turnover will be subjected to this reprehensible impost. This relief is, however, only temporary. And it is because the full effects will be felt in the financial year 1965/66 that your Board is taking active measures, which I believe will prove effective, to safeguard the overall financial position of your Company by building up additional revenues not subject to the Television Turnover Levy.

In this Report I am able to speak of the Company’s future with greater confidence than I have felt at any time during my Chairmanship. This is in no small measure because of the policy of growth through diversification consistently pursued by your Board. And I am happy to be able to say that there has been an overall improvement in your Company’s subsidiary activities.

MULTIPLE INTERESTS

Our production subsidiary, Incorporated Television Company Limited, has once again increased its volume of sales of film series and telerecordings in the Eastern Hemisphere.

In the Western Hemisphere our American subsidiary, Independent Television Corporation, has increased its sales to a figure in excess of $4,600,000 [$45.1m].

Late in 1962 we acquired the share capital of the A.P. Films group of companies, which includes a vigorous and expanding merchandising company. A.P. Films are the producers of the popular puppet film series “Supercar” and “Fireball XL5”. Their latest and most advanced production in colour, “Stingray”, is scheduled for showing in this country in the autumn and has already been offered a network showing in the U.S.A. I have never before predicted the success of any television series but, on this occasion, I do so without hesitation.

Our Australian group has continued to show satisfactory profits with improving results from television operations, and the decline in revenue from the radio operations resulting from the impact of television competition has been halted. For some time, however, your Board has been feeling that with the Company’s already large and steadily increasing activities in the film distribution field it would be better if it held no interests in individual stations and was therefore able to deal with all possible customers on terms of strict impartiality. Accordingly, since the year end we have sold our Australian interest to Fairfax Corporation Pty. Ltd. at a price of £2,060,000 [£34.7m] which compares with a book value of £543,815 [£9.2m]. We have excluded from the sale our Australian Television Programme Distribution Department which will be incorporated into a new company. The distribution operation, it should be noted, has been providing approximately 25 per cent of the profits derived from the Australian investment.

Commercial television in Canada has been gaining ground, and both stations in which we have an interest have now reached a profit-making stage though initial losses remain to be recouped.

Muzak, our background music service, continues its planned growth and your Board is confident that it will become profit-making in the not too distant future.

Ambassador Bowling Limited is already operating profitably and with the continuing increase of the popularity of this sport your Board is satisfied that this will prove a most rewarding investment.

Pye Records Ltd., of which your Company owns 50 per cent., has made most encouraging progress in the past year and there is every indication that the current financial year will show rapid and continuing expansion.

RANGE OF PROGRAMMES

The range of Independent Television programmes, already wide, grows steadily. Among the more serious contributions which have attracted large and attentive audiences are the weekly “Ombudsman” programmes, “Fair Play”; the highly topical and penetrating “Braden Beat”; the series of three programmes by Sir Kenneth Clark, “Discovering Japanese Art”; and the three programmes by Mr. Felix Greene on Red China which contained entirely new and hitherto unobtainable film material.

The programme year was memorable, moreover, for the second “Golden Hour” from Covent Garden in which Maria Callas and Tito Gobbi appeared in the whole of the second act of “Tosca”. This performance was seen by more than 9,000,000 viewers.

Adult Educational programmes in which, as the week-end Contractor in London, your Company has pioneered, continue to achieve successes which educationists in previous generations would have regarded as impossible. To cite an example, “Mesdames, Messieurs”, the adult French series, is regularly watched by some 300,000 viewers, and the companion volumes published on ATV’s behalf by Penguin Books have already sold over 60,000 copies.

ATV’s religious broadcasting amounted to 50 hours. It included the Coronation of Pope Paul in Rome; “Requiem for a Dead Statesman”, an anthology on the occasion of President Kennedy’s death; and the two programmes “Church and State” in which the Rt. Hon. R. A. Butler and the Rt. Hon. Harold Wilson appeared on successive Sundays.

During the year there has been a marked increase in the number of Outside Broadcasts reflecting the life of people whom we serve within the area of the Lichfield transmitter. The most notable of these was the two-hour broadcast of the celebrations at Stratford-on-Avon on the occasion of the 400th anniversary of Shakespeare’s birth.

“Midland Farming”, it is most pleasing to be able to report, has been cited by the National Farmers’ Union as “the most instructive farming programme on the air”; and the daily “Midlands News” – the first regional news programme in Independent Television – continues to command a major audience.

In the field of public service, it is good also to be able to add that “Police Five” has earned the special commendation of the Force in having helped in the apprehension of wanted criminals.

The number of homes in the London area capable of receiving Independent Television is now approximately 3,300,000. Your Company serves this public at week-ends. In the Midlands the number of homes is close on 2,000,000 and your Company serves this public on all five week-days.

SECOND INDEPENDENT TELEVISION SERVICE

In my Report last year I reminded you that on the 27th June, 1963, the Postmaster General had announced in the House of Commons that by 1966, when there should be not fewer than one and a half million sets in London capable of receiving a new 625-line service in UHF, he would authorise a second Independent channel in the main areas.

This announcement was greeted with especial acclamation by your Board because, throughout the whole history of Independent Television, we have consistently been advocating the introduction of genuine competition which would put an end to the present monopolistic system which exists in all areas.

With the foreseeable increases in advertising expenditures, or even with advertising expenditures remaining steady at their present level, there is an entirely sound financial foundation for two good and effective Independent channels in all the main areas.

Two facts, however, must be faced. First, it should be recognized that the levy on turnover was introduced by the Government in order to level off the high profits arising during the present monopoly phase and that this levy will have to be abolished entirely when companies are in direct competition one with another. Secondly, for some years to come there is bound to be a wide difference in the number of television sets capable of receiving the new 625-line UHF service and those capable of receiving only the original 405-line VHF service. This discrepancy is sometimes advanced as a reason why competition is impracticable and the question is asked “How can any company awarded the UHF licence possibly hope to survive?” The straight-forward solution which your Board would be most happy to accept is that of awarding licences for operation in alternate weeks on VHF and UHF respectively thus placing rival companies on an exact equality. It may be added that a simple matter of inter-company networking would ensure the continuity of programming which the public would have a right to expect.

Your own Board looks forward with eagerness to the day when we shall be empowered to operate a seven-day-a-week service, free of levy, and in full competition with a rival licensed company.

In the whole wide and, I trust, expanding field of British broadcasting the chief grounds for concern would appear to be the heavy costs involved in the operation of BBC 2 and the amount by which the BBC will be seeking to get the Government to agree to increase the licence fee, which already stands at £4 [£67]. A heavy licence fee is naturally a serious deterrent to the whole television industry, and must therefore be resisted.

The post ATV financial results: 1964 appeared first on THIS IS ATV NETWORK from Transdiffusion.

POLICY OF “REAL COMPETITION” ADVOCATED THROUGH ADDITIONAL COMMERCIAL T.V. CHANNEL

LOWER PROFIT FROM REDUCED REVENUE, GREATLY INCREASED COSTS AND DEVELOPMENT EXPENDITURE ON NEW SUBSIDIARIES

SIR ROBERT RENWICK CRITICIZES ATTACK ON ADVERTISING

The Seventh Annual General Meeting of Associated Television Limited will be held on September 26 at ATV House, Great Cumberland Place, London, W.

The following is the statement by Sir Robert Renwick, Bt, K.B.E., the chairman, circulated with the report and accounts for the year ended April 30, 1962:—

You will see from the consolidated profit and loss account that the profit of the Group before taxation is £5,038,204 [£89.4m in today’s money allowing for inflation – Ed] as compared with £6,411,899 [£113.8m] for the previous year. This profit is after charging all expenses including depreciation. The provision for depreciation of £439,986 [£7.8m] shows an increase of £157,463 [£2.8m] as compared with the previous year, due to the fact that this is the first year in which is charged a full year’s depreciation on new equipment at our Elstree Studios.

After making allowance for taxation of £2,658,935 [£47.2m] and the interests of outside shareholders, there is left a profit of £2,387,884 [£42.4m] attributable to ATV.

The amount retained in subsidiary companies is £113,708 [£2m] and the balance brought forward from last year is £1,859,608 [£33m], making £4,133,784 [£73.3m] available for appropriation.

An interim dividend of 20 per cent has already been paid and your directors now recommend that a final dividend of 40 per cent be paid again this year. If this recommendation is approved, there will be left a balance of £2,424,909 [£43m] to be carried forward in the accounts of the parent company.

Consolidated Balance-Sheet

Turning to the consolidated balance-sheet it will be noted that under the heading of fixed assets there have been increases both in land and buildings and in plant, equipment and motor vehicles. These are attributable to our new studios at Elstree which are now completed and fully equipped. Whereas the total of trade investments has not altered materially, it will be noted that quoted shares have increased and debentures and loan stock have decreased. This is mainly due to the conversion into shares of the £500,000 [£8.9m] convertible loan stock in British Relay Wireless and Television Limited.

We already have in our balance-sheet an investment reserve of £500,000. Taking our trade investments and investments in subsidiary companies together, your directors are satisfied that the present investment reserve is adequate.

The reduction in Group profit for the year is due to three main causes — greatly increased cost of operations, reduction in advertisement revenue and losses made by subsidiaries in early stages of development

We believe that in time our subsidiaries will make a very useful contribution to the income of your Company. We have never stated, as I have seen reported, that our Company could maintain its present dividend from sources other than the profit which we make as television programme contractors. Our profit at present comes mainly from our operations as contractors for Saturday and Sunday in London and for the five weekdays in Birmingham and the Midlands. These two broken periods are, economically far from ideal.

We advocate a policy of real competition in Commercial television through an additional commercial channel. If we were to have a seven-day operation, not only would there then be real competition, but we would be able to use to the fullest degree, both at home and through our export subsidiaries, the new studios which we have constructed at Elstree, which are the equal of any in the world.

Efforts to Improve Television

Our purpose is to provide good television, and by ploughing back profits into the studios at Elstree we have supplied concrete evidence that we are making in the field of television production the sort of contribution which the Government must have believed in when we were appointed. Nevertheless, it must be appreciated that though we have been able to improve programme standards by bringing into operation the new studios at Elstree with their complex and up-to-date equipment, this has not been achieved without at the same time increasing production costs. Similarly the awards which have been made as a settlement of the Equity strike are also contributing to increased day-to-day costs of putting programmes on the air.

Last year my predecessor in his statement said: “We confirmed to the Pilkington Committee that we accepted the recommendations of the Television Advisory Committee for the adoption of 625 lines as the British standard. In order to give effect to this we offered, on the days we were not broadcasting in London, to put out a new programme on 625 lines in the UHF band which would carry in addition one hour a day of 625 line colour broadcasting — all at our own expense. Surely this would be a great contribution, and something that would give encouragement to the scientists, the technicians, the script writers, the producers and all the many people who will benefit from an expansion of television broadcasting.”

There has been a great deal written about the profits which contractors have made. It is surprising to me that, when a contractor offers to divert a large slice of its profit and to plough it back into advancing the art of television broadcasting, as we proposed, this should not have been mentioned in the Pilkington Report. It seems to me that to use profits to expand the art of broadcasting and to make new programmes available is a better alternative than to force companies, by penal taxation, to pass money to the Exchequer to spend on providing the public, not necessarily with what the public enjoys, but with with what the Pilkington Committee thinks it ought to have.

I am not one to believe that we are called on to make any defence because of the profits we have made in recent years but I think it is a good thing to repeat what the Hankey Committee on television stated in 1945:—

“It is quite clear that, until the television service is well developed, commercial interests would not be willing to incur large expenditure for this purpose, owing, for example, to the limited audience served. In the early stages, therefore, we could not expect sponsored programmes to provide a substantial contribution towards the cost of the television service. In these circumstances and without prejudicing the matter for the future, we feel it would be premature to come to a conclusion on this question.”

I can say that, for several years before and after the war, the people concerned in promoting commercial television lost a considerable amount of money in financing the pioneering work and when eventually the Government agreed to set up a commercial television service it was far from easy to find sufficient sources of capital. This only confirmed the conclusions of the Hankey Committee.

No sooner had the independent television operation started than the rate at which money was being lost became so alarming that it was extremely hard to get any new money. In our own company almost the entire original capital was lost in the first year, so that, far from having “a licence to print money”, we found that we had a licence to lose money in millions. Yet a substantial number of the people who were original shareholders put their hands back into their pockets and produced further capital. Even so, it proved necessary to go outside the group for still further backing. It is easy to be wise after the event, but when one considers the risk involved in putting up money for what, on the best authority, was a very long-odds chance, I cannot agree that the criticisms of large profits are warranted.

It should not be forgotten, that, if risk capital had not been put up six years ago, we would not have had commercial television. We would still have the low standard of television broadcasting which existed at that time. Occasions are bound to arise when it may be necessary to depend on voluntary risk capital if the many projects and services of the future are to be developed. If the Government undermines the confidence of the investor it will make it impossible to get the financial support which will be required if we are to bring many new inventions to the light of day.

The most important objective in the day-to-day existence of your Company is the creation and production of programmes. In London we have Saturday and Sunday. These are the two days when the great mass of our people have time off from work and look forward to relaxation and pleasure. The daily drudgery of any worker can be lightened considerably if great care is given to filling periods of relaxation during the weekend by presenting the right sort of entertainment for ordinary people. We have tried to achieve this by giving pleasure while at the same time maintaining balance in our programmes.

The Pilkington Report

I do not intend in this statement to deal with the Pilkington Report in any detail. I feel that the ordinary people will decide the answer and not the extraordinary people. I would only point out the many references, often of an offensive character, about advertising which have been made in discussions about the report. Advertising is an honourable profession. Its standards in this country are recognized as high throughout the world. The Government is constantly calling for more and more exports. Now there is no weapon in this job of selling so important and vital to its success as advertising. Is it a crime to advertise? — it cannot be right to do it in one place and wrong to do it somewhere else. It is certainly wrong to attack advertising in the way it has been attacked and then to say “but it will be all right as long as the advertising is sold and handled by a state enterprise”.

Many shareholders have written to me about the effect of the Pilkington Report and I can only say to every one of them “You have made an investment in an undertaking which was permitted and promoted by the Government, and you have all the rights and all the freedom to take any legitimate steps you wish to protect your investment”. In the same way, I say to any and all of our viewers — “We are an adult people and each one of us individually has been entrusted with taking political and national decisions of enormous importance, but the Pilkington Committee has made it quite clear that there is one issue we are apparently not mentally capable of deciding, and that is the sort of programmes the majority of people want to see on their television screens”.

Successes Abroad

One of our more important subsidiaries, Incorporated Television Company Limited, continues to be the biggest producer and exporter of British television programmes. Following the network success in the United States and Canada of the “Danger Man” series, a further series “Sir Francis Drake” is being transmitted this summer on the NBC network. During the year, the “Supercar” series, using new techniques with animated puppets, was completed and has been equally successful both here and on the American continent.

Four film series, “Man of the World”, “The Saint”, “Fireball XL5” and “Broadway Goes Latin”, were about to go into production when the strike commenced and as a result of this over six months were lost. However, production is now in progress and we can only hope that there will be no interruption during the coming year; but of course the interruption in our production will affect our sales throughout the world during the present year.

Incorporated Television Company distributes the Group’s products in the eastern hemisphere and supplies these programmes to our American subsidiary, the Independent Television Corporation, for distribution in the western hemisphere. To date over 10,000 hours of programmes have been sold to 32 countries in the eastern hemisphere, covering Australasia. Scandinavia, Western Europe Eastern Europe. Middle East, Far East, India and Africa.

Very few British series have achieved a network showing in the United States of America and our American management have to be congratulated on their achievement.

Australia

Last year we referred to our investment in Australia where we have holdings in seven commercial radio stations including stations in Sydney, Melbourne, Adelaide and Canberra, and we are partners in the Australia-wide McQuarrie Radio Network. In commercial television we have interests in eight stations, including Sydney, Adelaide and Brisbane, which are firmly established and are now showing satisfactory returns. Of the remaining five stations, one is in Canberra and four are in important country centres but these stations only commenced transmission in 1962. In addition, we operate a radio programme production company which has a large market for its programmes overseas as well as in Australia.

Last year Australia suffered a severe income recession. I am glad to say we now see definite signs of recovery and look forward to much improved results in the future.

Canada

We continue to sell a substantial amount of material in Canada through the Independent Television Corporation. In addition, we have a capital investment in two Canadian television stations, one in Halifax and one in Vancouver. We were reconciled to the fact that it would take some time before these companies had expanded to the stage of income being able to carry the expenditure. One of the companies has already got into a profit position and the other is now likely to achieve profits ai an earlier date than we originally expected.

Planned Music Limited

Our subsidiary, Planned Music Limited, which promotes the distribution of suitable background music programmes in public buildings, offices, factories, &c., is gradually approaching a period of consolidation. In the last few years the expenses incurred in preparing the groundwork in this particular business were heavier than we had anticipated. During the build-up period the time taken to get G.P.O. lines laid down and contracts completed is a much longer operation than one would expect, and the shortage of certain Post Office lines has, to some degree, continued. A policy of developing in the known profitable areas, with good administration, will, I believe, bring us to a profit-making stage within the next two or three years.

Pye Records Limited, in which we have a substantial interest, progresses according to plan and, although large sums of money are required to establish a records business. We have been making profits for the last three years.

British Relay Wireless and Television Limited

Shareholders will know that for a considerable time we have had a substantial holding in British Relay Wireless & Television Limited. This is one of the leading line networks for bringing programmes into people’s homes and has been in existence for many years. In fact, the original company, Link Sound & Vision Services Ltd., was the first company in this country to operate successfully a system of transmitting television programmes by wire, and consequently doing away with the difficulties of interference and weak signal strength.

Because of the lack of public demand for new television sets, caused by the state of uncertainty while everyone waited for the Pilkington Report, the company has undoubtedly suffered during the last two years. It has nonetheless continued to build and extend its networks, confident that the added complexities of ultra high frequency broadcasting and colour would lead to a greatly increased demand for wire reception. British Relay’s networks are worth many millions of pounds and we know that, if the maximum effect is given to the White Paper recommendations on the number of channels, well over 80 per cent of the company’s existing cables will be able to take all these new programmes, including colour, with practically no capital cost. The future of British Relay is extremely bright and we will do everything possible to help it to become a great success.

In addition, in the field of pay vision, British Relay Wireless & Television Ltd. has a system which in my opinion is technically equal to any other, and certainly from the economic point of view has a great many advantages. 1 believe that pay vision is one of the certainties of things to come and in due course will be available to viewers in this country.

Tribute to Staff

I would like to bring a personal note into my concluding remarks. The strike put a great strain on your company. A large number of our employees had to spend some months in comparative idleness; this not only cost a great deal of money but was a soul-destroying period for everyone concerned. Yet, in spite of the frustration caused by enforced inactivity among staff who love their work, our people supported us wonderfully in that difficult time and were a great encouragement to my fellow directors who are responsible for the day-to-day management of the business.

With the strike at last settled, but almost before we could get back into our production stride, the Pilkington Report was published and more unsettlement was created.

Broadcasting depends on creative people — script writers, producers, directors, actors and technicians — and all of these were thrown into a well of doubt and despondency. It is quite clear to your board that, if we have to go through a long period of uncertainty about the future, this will do irreparable harm to British broadcasting.

We can only say to our staff that we appreciate their great loyalty and we shall do everything in our power to restore a sense of sanity and stability into the commercial side of British broadcasting which is recognized as being unequalled throughout the world.

The post ATV financial results: 1962 appeared first on THIS IS ATV NETWORK from Transdiffusion.

MR. PRINCE LITTLER REVIEWS YEAR OF ACHIEVEMENT AND EXPANSION

The Sixth Annual General Meeting of Associated Television Limited will be held on September 28 at ATV House, Great Cumberland Place, London, W.

The following is the statement by Mr. Prince Littler, C.B.E., the chairman, which has been circulated with the report and accounts:—

As shareholders will doubtless have seen, a notice appeared in the national Press on July 21 which read as follows:—

“Associated Television Results

The Directors of Associated Television, for the year ending April 30, 1961, announce a profit of £6,411,899 [£118.4m in today’s money, allowing for inflation – Ed], against a profit for the previous year of £5,388,330 [£99.5m].

The Directors propose recommending the payment of a final dividend of 40 per cent against the payment for the previous year of 30 per cent”

I think that you will agree that this brief but highly satisfactory notice covers the first essential that our shareholders will want to know about their investment in this company, which holds the I.T.A. licence to operate commercial television in London at the weekends and in the Midlands during the weekdays.

There are, however, various sides to the company’s interests and at the end of this address I propose to deal in detail with the more important subsidiary activities of your company.

I think this is a suitable year in which to use our annual report to review what has happened in this company since its foundation, and also to bring our shareholders, as it were, into our board room atmosphere so that they will understand the thinking which has been behind the policies adopted by your directors and appreciate the very able way your executives have put these policies into operation.

In a review of this nature I think there is no better way to start than with an examination of the people who are responsible for running the business.

The Board of Directors supporting me so ably at this moment have all been with the company during its formative years and they are drawn from the learned professions, trade, show business, the Press, state broadcasting, the City, and the great engineering industries. This cross-section of British life at our monthly Board Meetings, on a great number of committees, and at many informal gatherings, literally “lives” television broadcasting and feels the great responsibility we bear in building this organization. In our work we have all been inspired by the adventurous spirit of pioneering in this, the most powerful form of mass communication.

Our Board has become a team where each member, retaining his individuality, has made his own contribution to the eventual unity of both opinion and decision which has marked the history of this company. This team spirit has permeated right down through the organization, and our executives who sit on the Board and those executives who do not, all have a feeling of enormous strength because of the single-minded support and understanding which they get around the board room table.

Many people in many places have argued at great length about who were and who were not responsible for starting commercial television. The point at issue surely is not who started it, but who were the people who have made it the enormous success that it is. I remember many of the arguments which were used on the floor of the House of Commons to show why commercial television would be a bad thing. Above all the arguments one stood out — the oft-quoted Gresham’s law that evil drives out good. A picture was painted showing commercial television as an evil thing likely to force the B.B.C. to lower its standards in order to compete. Looking back now, it is universally acknowledged that, from the moment commercial television started, the B.B.C. programmes became more diversified and the general standard improved, so that not only did the “evil” not drive out the “good”, but the good became better. We in this company recognize that there is a place for both the B.B.C. and companies like our own, and I trust that the feeling of toleration, and often of mutual admiration, will long continue.

When this company started, very few people had any clear idea of how the operation would expand or what the difficulties would be. I have told you at our previous annual meetings that the most prominent feature in those first three years was the rate at which it was possible to lose money. We also learned something else — how difficult it was to get financial support to replace the money we had lost, and therefore, at this stage, it is some gratification to all of us that the shareholders who had the courage to invest in difficult times, and who have gone on investing in this company, sometimes at what might appear to be very high prices, still placed their confidence in our ability to make commercial television broadcasting a success.

Our company has always believed in competition and the decision of the I.T.A. to limit our London broadcasting to weekends is far from our idea of true competition, but, at the time that broadcasting licences were given, we had no alternative but to accept. We believe we should have a competitive seven-day-a-week operation in London where there would be true competition between two commercial stations.

The Pilkington Committee

This brings me to the subject of the Pilkington Committee. This committee was set up by the Government to review the whole broadcasting position and to lay down recommendations for the future.

When the announcement of the formation of the Pilkington Committee was made, we immediately set up a study group to give expression to our own point of view and to give any help we could to the Committee, particularly with regard to the changes which had taken place from the technical and political points of view. Our study group reported that there would not be enough space in the existing television broadcasting bands to enable two competing commercial broadcasting stations to operate in all areas. This fact emerged without any regard to the claims the B.B.C., might make.

We therefore were at a loss to reconcile our belief in the necessity for the competition of a seven-day operation with the incontestable conclusion that there was not sufficient space in Bands I and III.

Your Board, ably supported by our technicians, has always held the point of view that broadcasting companies, commercial or otherwise, must give a lead in all matters of technical television progress. When we first obtained our concession we recognized that it was under technical standards which might have been satisfactory when Britain established the first television service in the world in 1936 but which today had become obsolete, and gradually we, together with others, would have to encourage scientific progress and the adoption of higher broadcasting standards. Our endeavours to deal with the dilemma of creating competition in the London area became the starting point of the proposals which we made to the Pilkington Committee on May 2.

The policy we put forward meant making considerable sacrifices and I am convinced that whether our proposals are actually adopted or not, something on their lines will figure in the recommendations of the Pilkington Committee:—

1. because our proposals are scientifically progressive;
2. our proposals demonstrate a progressive attitude on the part of a commercial television contractor offering to undertake a substantial material, technical and cultural responsibility at his own expense;
3. we offer a method of creating a spirit of competition between contractors;
4. we propose the adoption of new technical standards in line with the development in countries associated with the Eurovision system;
5. we would explore the use of equipment in a new part of the ether in order to make way for colour television and other services.

We confirmed to the Pilkington Committee that we accepted the recommendations of the Television Advisory Committee for the adoption of 625 lines as the British standard. In order to give effect to this we offered, on the days we were not broadcasting in London, to put out a new programme on 625 lines in the UHF band which would carry in addition one hour a day of 625 line colour broadcasting — all at our own expense. Surely this would be a great contribution, and something that would give encouragement to the scientists, the technicians, the script writers, the producers and all the many people who will benefit from an expansion of television broadcasting.

Six Years of Independent Television

When a completely new industry comes into being virtually overnight with the suddenness of commercial television, one of the great problems is that of staff.

Some people came over to us from the B.B.C. — by now some have gone back, this is a healthy interchange — and some, on the technical side, came from the electronics industry. Writers came to us from the newspaper and magazine worlds, and directors and producers joined us from the stage and the films. Thus we gathered together a body of experts in related activities, but, by and large, everybody had to make a fresh start and find the answers to a new set of problems in a new medium.

I remember an executive describing his excitement at joining commercial television and finding a desk with a sheet of blank paper on it — that was all — the rest was up to him.

It should be put on record that the efforts of the staff of our company have made the success of the business possible. Their intelligence, enthusiasm and long hours of gruelling work, often after the ordinary day’s work was done, were factors which not only gave great support to the Board but became the basis of our continuing progress.

I now come to the most important interest both to your Board of Directors and to the company as a whole.

When a television broadcasting station is started, everything centres around your audience. More than ever this was vitally important in the case of the establishment of the British commercial system.

A great battle had raged in the House of Commons about how commercial television would handle a potential audience. Everyone knew that Britain had established one of the finest broadcasting machines in the world — the B.B.C. — with enormous wealth, subsidized by licences, not answerable to the House of Commons, and with all the privileges which accrue to a state service. It was for the audience that had hitherto been served by the B.B.C. that commercial television had to compete, and this was the challenge which we took up. And now after six years of television broadcasting I say with confidence that we have discharged our responsibilities and we have given a service which can stand the most detailed examination.

And what else have we as a broadcasting company done? We have endeavoured, and to a great degree succeeded, in giving our public good entertainment. We all know that there is a small sector of intelligent people who think our programmes are bad because they give the public what they want to see and not what the intelligentsia think they ought to see. Television broadcasting is meant to be entertainment, and while we recognize that the standard of taste ot a great number of the viewers in this country could be higher, we feel it is essential not to get too far ahead of our public, but rather to lift, gradually, the quality of our programmes on a progressive basis.

Television in the Midlands

It is right to refer with emphasis to the importance of that half of our business which stands independently on its own feet as the Midland Television Broadcasting Station for five days a week.

Your Board from the outset has always considered the Midlands a self-contained organization and not an offshoot of a big operation based in London and has therefore appointed a Midlands Controller responsible for its operation.

The Midlands is a country all on its own, and with the new power from the Lichfield transmitter, 2,366,000 homes are covered nightly. Great towns like Leicester, Gloucester, Hereford, Shrewsbury, Stoke, Birmingham, Coventry, Walsall, Wolverhampton, Burton, Nottingham, Northampton, Worcester, West Bromwich, Dudley and many others are spread around in this independent-minded area.

In the South, viewers think of ATV as one of the two London Companies. In the Midlands, they regard ATV as one of the two Midland Companies. ATV is responsible for all the weekday programmes and to 5.4 million viewers in the Midlands, ATV is much more than a symbol on the television screen — it is an important and accepted feature of the Midland scene.

The Midlands programmes include many not seen on the London screen. Lunch Box, Britain’s first regular midday television programme, has now had an unbroken run of well over 1,000 performances. Each weekday in Midlands News (the first regional news programme on British television), the ATV News Unit brings to viewers an up-to-date account of local news and events in the Midlands, while the weekly events are reflected in Midland Montage. The documentary series Look Around features topics of interest ranging from the Severn Story to an investigation of witchcraft in the Cotswolds. The weekly programme Midland Farming not only informs farmers of the newest trends and techniques but instils in the town dweller a new respect for the countryman. New records in late-night viewing have been established by the weekly Midland Profile in which Midlanders tell their life stories. Other regular programmes include the highly popular Hook, Line and Sinker for anglers, features of interest to gardeners and special outside broadcasts of many kinds. A notable series of afternoon programmes has been presented from the famous Cordon Bleu Cookery School.

Last year ATV set up a special department for the development of its television service for Midlands schools, under the guidance of a distinguished education advisory committee. The first two series, French from France and Ici La France were produced by ATV entirely in France. They were first shown in the Midlands from January this year. From September these two series will be seen throughout the country, together with a new ATV series in mathematics. A further ATV schools series on chemistry will also be presented in the Midlands from the same date. These are just a few of the ways in which ATV is serving the Midlands of England.

The profits from this area have been most satisfactory. The standard of programmes has been high. The public has been enthusiastic about the entertainment; and our engineers have seen, by the establishment of a two-way television micro-wave link operating all through the day and night, that we have the closest communication between our two stations.

Profit and Loss Account

Now I will refer back to my opening remarks in this review and tell you about the profits for the year. You will see from the Consolidated Profit and Loss Account that the profit of the Group before taxation is £6,411,899 [£118.4m] as compared with £5,388,330 [£99.5m] for the previous year, an increase in excess of £1m [£18.5m]. This profit is after charging all expenses including depreciation. The provision for depreciation of £282,523 [£5.2m] shows an increase of £27,481 [£507,000] as compared with the previous year. It should be noted that directors’ fees and directors’ other emoluments are lower than in the previous year. Income from Trade Investments which forms part of your company’s profits, is £32,933 [£608,000] higher than last year.

From the profit mentioned above taxation absorbs £3,239,810 [£59.8m] and the profit attributable to outside shareholders in subsidiary companies is £25,037 [£462,000], leaving £3,147,052 [£58m] profit attributable to ATV.

After deducting the amounts retained in subsidiary companies of £84,348 [£1.6m] and adding the previous year’s unappropriated profit of £505,779 [£9.3m] there is £3,568,483 [£65.9m] available for appropriation.

From this figure has to be deducted the interim dividend of 20 per cent paid on January 24, 1961, leaving £2,998,858 [£55.4m] for disposal. In view of the results achieved during this period your directors recommend a final dividend of 40 per cent making 60 per cent for the year as compared with 50 per cent for the previous year. This increased dividend, if approved, will absorb £1,139,250 [£21m], leaving £1,859,608 [£34.3m] to be carried forward in the accounts of the parent company.

Consolidated Balance Sheet

Turning to the Consolidated Balance Sheet it should be noted that the accounts of our American subsidiary, Independent Television Corporation, have been included for the first time. This is reflected in the increase in goodwill, film rights, debtors, creditors and advances from bankers. The considerable increase in fixed assets is mainly due to the building of our new television centre at Elstree.

I feel that the item Trade Investments requires some explanation. Trade Investments have increased on account of additional investments in British Relay Wireless & Television Ltd. (mentioned elsewhere in the report) and in Canadian television and because of a revaluation of certain of our Australian assets. However, these increases have to a certain extent been offset by the removal of the investment in Independent Television Corporation, which has now become a subsidiary company.

The reduction in bank balances, deposits and cash in hand has been caused mainly by the construction of the Elstree Studios and by additional investment.

Bricks and Mortar

“Bricks and mortar” is the descriptive phrase the bankers use when they talk about the buildings on the asset side of a balance sheet. In a broadcasting service bricks and mortar come into your calculations at practically every turn.

In broadcasting you need big buildings and small buildings, buildings in this location and that location, and they are all part and parcel of your work.

If you try to centralize, too much time is wasted by important people travelling. Again, actors may be wanted for rehearsal at a moment’s notice and it is quite impossible to take them far from the location where they are appearing. Therefore, many buildings are necessary in many different places. Some, for instance, are wanted for quick rehearsals, some for storage for special materials, some for administrative offices near the seat of a particular operation. All of these buildings together with our centrepiece for production — Elstree — make up the pattern of our efficient ATV organization.

The Head Office building at ATV House, Great Cumberland Place, of 120,000sq. ft. houses the main administration, our sales organization, and also our subsidiary ITC. In the basement are recording studios for our associated company Pye Records, and a West End TV studio for special presentations and interviews with V.I.P.s.

When Elstree is fully completed the Wood Green Theatre, an ex live-variety theatre of 20,000 sq. ft. will still remain operational. There, shows like Startime and Saturday Spectacular, requiring audience participation are being produced.

Foley Street, in the West End of London of some 11,000 sq. ft. is the home of master control and is the switching centre.

With the growing importance of the Midlands we have outgrown our premises at Herbert House, Birmingham, and have taken a lease of the entire ground floor at Rutland House, a handsome new building in Edmund Street, Birmingham. Also in Birmingham we own and jointly operate with ABC the Aston Studios of some 22,500 sq. ft, where such popular shows as Lunch Box and all other local programmes are produced.

In Manchester we maintain an outpost so that our sales force can keep in contact there with agents and advertisers.

Finally, we have small but most important premises located at Hillcrest, Highgate, overlooking London, and a similar place in Birmingham where the signals are picked up and relayed to our master control centres.

Elstree Studios and our Technical Story

Many of the great television programmes of the future, not only on British screens but on screens all over the world, will show what will become a famous caption, “An Elstree Programme”.

We always planned, from the beginning of our contract with the Independent Television Authority, to have an imaginative yet highly functional group of buildings which would give the greatest possible scope to free enterprise television to create programmes of the highest quality.

Now, here at Elstree, on 31 acres, one can see this conception taking shape and, down to the last detail, the organization has been undertaken by our own executives. A team of experts has worked and striven for the last 18 months to take Elstree through its first stages, and engineers and production people have all contributed to achieve an outstanding result. Only people with great faith in the future of commercial television would have undertaken this vast operation. Now we are ready to give the best programmes to an expanding British television service; to give scope for their abilities to script-writers; to give producers and directors the last word in service, and to actors the best possible facilities.

Some of the techniques already developed by our engineers are being used by broadcasters as the basis for their operations in North America and the Commonwealth as well as in this country, and our new studios incorporate many new and valuable devices. In deciding the types of equipment to be used there were two major considerations — the need to allow for a probable change in line standard and the speed of technical advance. The electronics industry is developing new devices and components at such a rate that considerable imagination is needed to design equipment that will not be out-dated before it is built.

The new A.T.V. studios of 9,500 and 6,000 sq. ft. will accommodate not only the 625-line system but also the 525-line system of the United States and Canada. This is in keeping with our policy of creating a programme production centre, where the aim is to produce complete programmes which go out on wire, microwave links, video-tape or any other recording medium which may become available.

As far as equipment is concerned, ATV, here working closely with the Pye Group, has not only incorporated equipment which is unique and in advance of that used in any other studio but has adopted modular or “building brick” construction so that when improved components become available the “ building bricks ” can be replaced by pulling out a unit and plugging in a new and better one. Great emphasis has been placed on the use of transistors wherever possible and alt synchronizing signal generation, picture selection and switching is done by transistors. Transistors are commonly used in everyday devices such as portable radios, but their application to television transmission equipment and to apparatus that can accommodate 405, 525 and 625-line signals is quite new.

There are many significant new components being developed which permit the improvement and widen the scope of technical equipment. ATV’s development department, which is responsible for the design and construction of a large quantity of the new gear now installed has many developments to be introduced when the studio project has passed phase two at the end of this year. For example, the miniature transistorized microphone, used to very great effect on outside broadcasts such as the perenially popular Sunday Night at the London Palladium, is to be redesigned to give even better performance and a completely transistorized microwave equipment of small size and light weight is well advanced.

Developments are in hand on new methods of filming our programmes. While the bulk of recording being done in this country and in America is on video-tape, ATV engineers believe that the future for the interchange of programmes is in the use of a compatible medium such as 16mm film. The limitations on this system are being probed and new and radical techniques are being sought to improve the technical quality of recording.

The second pair of studios is well ahead and will go into operation this autumn. These two studios were planned to be identical with the first two, but within the the short space of time between the installations it has been possible to introduce even newer devices. These will make the studios even more efficient than the first Vauxhall site the company should have been forced to expand elsewhere.

In early 1962, the central technical area will be complete. It will contain all the switching and distribution equipment necessary to coordinate the activities of the first four studios — telecine, video-tape and film recording—and adequate space is being reserved for new developments.

It should be realized what an enormous apparatus, apart from the equipment and the manpower to operate it, is required to produce regularly the programmes which feed the 17in. and 21 in. TV screens of our viewers. At Elstree alone, some 350,000 sq. ft of built-up area are needed by ATV for this purpose.

In the television industry at least ten times the space is required for auxiliary and ancillary purposes as for the actual studio floor space. In consequence, each studio has technical and general control areas of between 12,000 and 15,000 sq. ft., and a technical facilities building exists of some 20,000 sq. ft. Also, we have a production facilities building of some 76,000 sq. ft. housing the carpenters’ shops which make our scenery, the painters who paint the backcloths and flats, and in the props department enormous quantities of used props that are stored for future use. At this moment a producers’ building is going up covering an area of some 82,000 sq. ft., which will house the producers, directors, production assistants, libraries, and provide 10 rehearsal rooms with a floor space of 17,000 sq. ft. So far we have been using 17 different rehearsal rooms spread all over London with a total floor area of some 20,000 sq. ft.

Wardrobe, make-up and dressing rooms take up another 20,000 sq. ft., and ATV is particularly proud of the dressing rooms provided for artists appearing at Elstree — there is even a separate “dressing room” for the performing animals which are often used.

In the transport building of some 41,000 sq. ft. are garaging facilities for ATV’s fleet of transport and outside broadcast vans, also modern workshops as well, where ATV manufactures a great deal of the equipment used in its studios. Finally, so that nobody has to go hungry, there is a canteen geared to serve food to 700 people at one sitting.

The fulfilment of the Elstree project has relieved one of the most pressing needs which had been facing the company. For its future needs the company had already obtained an option on a site at Vauxhall on the South Bank. Owing, however, to planning delays inherent in so centrally situated a site, the company was compelled to make immediate arrangements for the development of its own Elstree studio site. It is a significant indication of the growth of this industry that, while retaining the Vauxhall site the company should have been forced to expand elsewhere.

An Eye to the Future

Three factors condition our attitude towards trainees in the production and technical fields. The need to keep pace with a medium which is hungry for new blood, new ideas, new techniques. The need to train enough talent to provide a “bank” upon which we can draw for replacement. The need to look to the future and provide for the time when the creation of a new network or networks will inevitably result in a serious drain upon the existing talent and experience.

The pattern of training in both the production and technical fields is the same. Once the trainee has been chosen by the selection board, he is immediately put under the wing of a senior member, or members, of the department concerned. The method and length of his training varies from department to department; but, assuming that the right man is chosen, his initial training is designed to expose him as fully as possible to all facets of the business of mounting a television programme. Because this must be the end product it emphasizes an interesting feature in the selection of trainees. It would be safe to assume that the production department would be most concerned with the creative talent of a trainee, and the technical departments with his technical know-how. This is broadly true, of course, but television has had to breed a new body — the engineer with a creative and artistic flair and the creative artist with technical knowhow, and the ability to be aware of and use the facilities available to maximum effect

All training processes vary with the individual and, inevitably, the selection of trainees is much like taking a chance in a lottery. We cut down the odds as much as possible by ensuring that the selection boards comprise the most experienced men in the company. The training, however, can never be the same for each trainee. Some are slow starters and, in the early stages, do not fulfil the promise shown; some leap ahead and, much like the hare in the fable, outstrip their contemporaries. Some never make it at all. But all need patience, perseverance and understanding and in this business more than most others, temperament must be considered and foresight exercized if the full potential of a trainee is to be realized.

Initiative and ideas are the life-blood of television. To get the best out of those who work for us, a great deal of freedom of expression must be granted. Freedom here does not mean licence. It does mean discipline; a need for the individual to learn the rules, the grammar of his job, and to use all his creative and technical ability to express himself within those rules. Every facility open to his seniors is open to the trainee. The only limit to his acquisition of the necessary knowledge is the limit of his own ability to absorb and learn. We are proud of our trainees, and the system we use to train them. Our percentage of success is high, and there is ample evidence that this company, which started in 1955 with the cream of talent and experience available, is passing that know-how down to those who join us along the way.

Incorporated Television

Your wholly-owned subsidiary, ITC—Incorporated Television Company Ltd., is the biggest exporter of British television programmes. ITC is responsible for the production of films which are distributed in the Eastern Hemisphere, including the Iron Curtain countries, and supplies these films to our American subsidiary in the Western Hemisphere. ITC is already a familiar name on the network screens of the United States and Canada, not least through the conspicuous success of the series Danger Man starring Patrick McGoohan. ITC has produced over 1,600 half-hour programmes which have been sold throughout the world. Notable successes have included Robin Hood, Sir Lancelot, Buccaneers and The Invisible Man. It is not too much to say that ITC has contributed in large part to the country’s export drive and the earning of vital foreign currencies. ITC is currently engaged in the production of the series Sir Francis Drake, already sold to CBC in Canada and to the Australian Broadcasting Commission. This is being produced in association with ABC television. Also ITC is producing in conjunction with the Rank Organisation a new one-hour film series, Ghost Squad, already in release and the series has already been sold in the Canadian and Australian markets.

Australia

Every year we have further confirmation of how right was our judgment when we bought our interest in Australia a few years ago.

We have always realized the potential market of the television industry in Australia, and we had this in mind right from the first. Not only are we identified with one of the great radio networks in the Commonwealth, but we are partners in its expansion and in the extension of its reputation in Eastern and Southern Australia.

In addition to that, in so far as the Australian law permits us, we have entered the commercial television field in a substantial way through our organizations there.

Today, we have an investment in the following television broadcasting stations in Australia: Amalgamated Television, Sydney; Southern Television, Adelaide; Queensland Television, Brisbane; Canberra Television; Wollongong Television; Richmond-Tweed Television; Ballarat Television; and Country Television Services. We have no doubt that during the years to come, the same substantial development which our radio stations have achieved in the last 25 years lies in front of our television broadcasting operation.

In addition to ail this, Australia continues to expand as a market for our programmes from this country, and gradually the care and thought we have taken in sending to Australia the right programmes, is being reflected in the size of business we are doing.

Our North American Venture

One of the first plans our management had when we started to create programmes for our British audiences was to provide entertainment of a standard which would have a ready market overseas and particularly in the North American continent.

Here, we were conscious of the fact that the history of selling British entertainment in America has been fraught with difficulties, and in the case of the film industry – many failures. But we felt that to produce programmes of the quality that would sell to an American audience was a further spur to the competitive spirit which we believe is the basis of good broadcasting. We very quickly learnt that just to send somebody to the United States to sell programmes, without having an efficient and well-directed organization was merely a waste of time. For this reason, therefore, we decided some years ago to buy a half interest in a substantial American corporation — Independent Television Corporation.

In the light of experience we decided that if the operation of the American company was to be truly effective in your company’s interests nothing less than complete control would suffice. For that reason, as we reported last year, we bought the other half of the Independent Television Corporation. Having acquired control, we took steps to strengthen the management and reduce the overheads. We are now able to report that these steps have been successful and the operational period to April 30, 1961, has been a profitable one. We would congratulate our American management on their success.

The success of our American company depends on the quality and the amount of the films which the Incorporated Television company is able to make available. In the past, this vital supply was Insufficient, The measures which are being taken and which I have described to you should assure the supply for the future.

This will include Whiplash, Sir Francis Drake, Ghost Squad and Supercar with three more film series being prepared for production before the end of 1961.

Also on the American continent, we have continued to develop our interests in Canada by investing iq radio and television. Our Canadian subsidiary is Canastel Broadcasting Corporation Ltd. and this company now has interests in CJCH, the Halifax, Nova Scotia, commercial radio and television station, and in Vantel Broadcasting Company Ltd., the Vancouver commercial television station. Your board has other plans for developing the company’s interests both in the networking of programmes and in local stations.

The Link with Moscow

This year your company was responsible for providing “live” programme exchanges with the Soviet Union, and was the first to send back coverage of events in Moscow produced jointly between ATV’s production personnel and Soviet Union crews and technicians. The opening of the British Trade Fair in Moscow, at which Mr. Krushchev and many members of the Soviet Praesidium were present, was transmitted live from Moscow; the video-tape recording of the first programme from the Bolshoi Theatre to be seen outside Russia, and an outside broadcast video-tape recorded documentary on the Moscow scene have already been seen by our viewers.

Talks have taken place in Moscow with the USSR television organization and many more programme exchanges are planned for the future.

Gorki Street, USSR, a series of six programmes showing life in the Soviet Union, a programme series similar to the successful Main Street, USA, is in the planning stage, and in this series we will go to all parts of Russia, into the agricultural lands, into the industrial areas, as well as seeing life in the smaller towns.

An exchange of language programmes is being discussed similar to those already being produced in France for schools, and a joint production with Soviet television on the peaceful use of the atom involving both British and Soviet scientists is also in the early stages of planning.

Future plans covering programme exchanges with the Soviet Union include song and dance festivals and broadcasts from the Bolshoi and other famous Russian theatres.

British Relay Wireless & Television

Three years ago we took up half a million pounds worth of convertible loan stock in this company and, as this stock is on the point of being converted into ordinary shares, it is right that reference should now be made to this investment. Since we took up the loan stock, we have taken advantage of our rights to take up shares as if we had been ordinary shareholders in the company. The situation is that, when our stock is converted, we will hold 2,216,025 ordinary shares in the company.

This investment is very closely allied to our interests as television contractors to the Independent Television Authority. BRW & T is a company which was originally started as a radio relay organization and, some 10 years ago, it was amalgamated with the first television relay company in the country, the Link Sound and Vision company, who had an operation working in Gloucester. Gradually the field of operations of the company has expanded and, today, serves 17 metropolitan boroughs in London, has networks covering extensive areas of the West Midlands and Yorkshire and has recently extended its activities into Scotland.

Among the towns served are Ipswich, Peterborough and Corby; Smethwick and Oldbury and adjacent places; Leeds, Sheffield, Bradford, Halifax, Huddersfield and intervening and neighbouring townships.

In Scotland networks have already been established in the principal border towns and in Dundee, while concessions have recently been secured for the operation of relay services in Ayr, Kilmarnock, Cumnock and Irvine in the west.

We recognize that, in a relay business, a substantial amount of capital has to be spent in putting down miles and miles of cable to cover the areas where valuable concessions have been secured. These cables, the terminal units and the station equipment which are concerned with the installation, have to be depreciated; and it is only when the bulk of the depreciation has been written off that the profitability of the undertaking becomes apparent. We believe this is the case with BRW & T. In addition, we are confident that the system, on which both sound and vision services are provided, is the best system that has yet been put into use.

With the possibility of a Pay-as-You-View television service becoming available in Great Britain, we are convinced that it is networks like BRW & T which stand in a most prominent position to derive the greatest advantage from such a service.

In addition, as we have said earlier in our Report, British television has technically to advance, and the networks controlled by BRW & T, with the minimum amount of alteration, can take the 625-line system which is generally anticipated and provide subscribers with the benefits of colour television as well.

Planned Music Ltd.

It is now over three years since we started this important subsidiary operation with the purpose of exploiting in the British Isles and certain other countries in the world the American form of background music called Muzak.

The essential difference between the use of normally recorded music and Muzak is that music as usually performed relies for part of its effect upon great changes of amplitude, or loudness, but in the case of Muzak, the character of the original work is preserved by suitable transcription in a form which is performed without great changes of amplitude, and this results in the music being conveyed to the listener without him suffering or being inconvenienced by very loud or very soft passages.

At first there was resistance to this new amenity in business and commercial life. With so many opportunities nowadays of demonstrating Muzak in operation this resistance is vanishing. There has remained, however, the difficulty of the shortage of certain Post Office lines. In consequence, rather than stand still, Muzak has gone into some territories before the development of the service has made them, in an economic sense, fully ripe.

In America, the market for background music is enormous. Muzak is a multimillion dollar business, and has more than 60 per cent of the market. Background music has become part of life practically everywhere — in offices, factories, banks, shops, restaurants, airport lounges, trains, hospitals, and many other places. Characteristically, this development has not been so early or so rapid in this country. We now estimate, however, that over one million people are regular listeners to a Muzak service in England which shows a good rate of growth in a steadily expanding market.

The aim of Muzak is to make life more pleasant; the influence of music is subtle, it relaxes tensions, helps people to be cheerful, imparts a rhythm and a swing to a task and an interest to an enforced wait.

Over the years, a library of many thousands of recordings for Muzak has been built up. This is a priceless asset as it enables us to give a very much wider choice and scope for endless variation to users of the service. This library is constantly growing as new music becomes available.

During this year, the extension of the services of the Muzak organization on a regional basis has continued and national coverage has now been attained in England. Regional offices exist in London, Reading, Bristol, Birmingham, Manchester and Newcastle. Local and intensified development of the service continues in the main provincial centres. In addition, Travel Muzak is a new service now being supplied to airline operators and shipping companies.

A new company. Planned Equipment Ltd., has also been set up to handle public address and sound engineering services, including Audiomatic equipment. This is a machine which provides information in a number of different languages for foreign visitors to exhibitions. Our machines were a success at the British Trade Fair in Moscow and shareholders will be able to try one for themselves at this year’s Motor Show, where several wiil be installed.

Golden Guinea — and other Discs

In 1960-61 Pye Records Ltd., of which we own 50 per cent, had a year of continued expansion.

The record industry throughout the world has been passing through a period of change and experimentation. On the technical side we have seen the change from the old 78 r.p.m. shellac record to the modern long-player and more recently the development of the stereophonic record. Exciting as these changes have been, they have led to even more exciting developments in marketing techniques.

It was with the introduction of microgroove records 12 years ago that the “repertoire explosion” began. Suddenly, performances could be recorded and heard as never before. The parallel development of gramophone equipment which could do justice to these new recording techniques helped to accelerate the growth of public interest and new recordings were made and issued in ever increasing numbers. For a time the size of the market increased faster than the rate of increase in available recordings, but over the last few years it has become apparent that the industry is overproducing new products, resulting in a smaller sale of each production and a downwards squeeze on profits.

This has led the major companies, principally in the United States, to seek new and better ways of marketing their labels. We have seen there the development of low-priced mass-market labels as a means of producing business which places little reliance on the star quality of individual artists. We have seen in America, too, the sale of records through drug stores, supermarkets, and other outlets, and the development of record clubs run on similar lines to the book clubs.

This is not to say that our record business discounts in any way the value of and need for the established distribution pattern in this country. This is, after all, the backbone of the business; but if the industry is not to stagnate in the next few years new techniques must come, to be used intelligently and in such a way that all levels, i.e., manufacturer, distributor, and retailer, benefit from the overall increase in activity.

Last year was the first full year of direct to dealer trading, now developed so far that every important record retailer in the country is regularly visited, helped, and advised by our records van-man. The light blue vans with the Golden Guinea lettering are a familiar sight in every city and major town of the country.

Golden Guinea family-priced long playing records too are nationally known as the only range of records that give entertainment to all the family. One outstanding issue during the year on this label was the special presentation set of Handel’s Messiah on three records issued for Christmas.

In pops too our artists topped the popularity polls. Sales of their records continued to climb and this label now boasts one of the strongest line-ups of British recording artists in the country.

In Conclusion

In the foregoing I have sought to set out in more detail than in previous years the manifold nature of your company’s activities. In doing so I have paid tribute to the services rendered by the Directors and by our immensely able and devoted staff. I look forward to another year of progress in programme achievement, technical achievement and export achievement.

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A Memorable Year Yielding Eminently Satisfactory Financial Results

SUCCESS OF BOARD’S DIVERSIFICATION POLICY

The Industry’s Growth Continues

MR. PRINCE LITTLER’S REVIEW OF ACTIVITIES

The Fifth Annual General Meeting of Associated Television Limited will be held at A.T.V. House, Great Cumberland Place. London, W.1, on 28th September 1960.

The following is the statement by the chairman, Mr. Prince Littler, C.B.E.. which has been circulated with the report and accounts:-

The year under review has proved to be a memorable one and has yielded eminently satisfactory financial results.

The proposed dividend means that the Company will have maintained its dividend at the equivalent of 100%, bearing in mind that the capital of the Company was doubled during the course of the past financial year.

Board’s Policy

The principal business of your Company is that of a Programme Contractor licensed by the Independent Television Authority to trade in London and the Midlands, and it is primarily upon this trading that these excellent results have been achieved. It has, however, from the inception of the Company, been the policy of the Board to make investments in allied fields both at home and abroad and, in consequence of this policy, the resources of your Company are now more strongly diversified than any time since it commenced trading.

Developments overseas have proved particularly gratifying in Australia and in Canada. It should, moreover, be noted that in the USA, your Company has recently acquired full control of the Independent Television Corporation of America.

The diversified interests at home are highly encouraging and include the operation of the Muzak franchise, a 50% interest in Pye Records and a substantial and most profitable investment in British Relay Wireless. All these developments will be reported in detail later in this statement.

Success of Consolidation Policy

Your Company has been actively trading for some years. The period of licence from the Independent Television Authority extends until July 1964 and your Board has, with conspicuous success, sought to consolidate the Company’s position as the only major seven-day-a-week Company operating under licence from the Authority.

At the outset of operations your Managing Director, Mr. Val Parnell, and his Deputy Managing Director, Mr. Lew Grade, resisted the pressures put upon them to equip large studios and to build large offices. The volume of programming both for ATV’s own domestic purposes and for the Independent Network as a whole has, however, necessitated a plan of expansion, carefully phased over the past and current years. Your Company has therefore purchased the important riverside site at Vauxhall. Moreover, the Company has proceeded to enlarge its Elstree Studios in order to meet the steadily increasing commitments of live, tape and film production for home and overseas television as a whole.

New Headquarters

During the past year the headquarters of Associated Television Limited have been moved from Television House, Kingsway, to an island site office block in Great Cumberland Place, W.1. The effect of this move has been beneficial to the Staff, and has resulted in a marked increase in inter-departmental efficiency.

The financial results reflect the confidence expressed by your Board in December 1959 when an interim dividend of 8s. per share, less income tax, was declared on the Ordinary Shares of £1 each, and 2s, per share, less income tax, on the ‘A’ Ordinary Stock Units of 5s. each.

Bonus Issue Approved

At an Extraordinary General Meeting held on the 21st January 1960 the shareholders passed a resolution, submitted by your Directors, for the capitalisation of £2,325,000 [£44.3m in today’s money allowing for inflation – Ed] of reserves by the issue of 9,300,000 ‘A’ Ordinary Shares of 5s, each, credited as fully paid, to the holders of the then existing issued share capital in the proportion of four new shares for each existing Ordinary Share of £1 each and one new share for every existing ‘A’ Ordinary Stock Unit of 5s, each. The new shares, on issue, were converted into ‘A’ Ordinary Stock Units of 5s, each.

Profits & Dividends

The Group profit before taxation for the year ended 30th April 1960 amounted to £5,388,330 [£102.6m] as compared with £5,316,493 [£101.3m] in the previous year. Taxation takes £2,711,820 [£51.65m] as against £2,715,076 [£51.72m]. The Group net profit is £2,676,510 [£51m] of which £1,031 [£19,600] is attributable to outside shareholders of subsidiaries leaving a profit attributable to the Parent Company of £2,675,479 [£50.96m] as against £2,601,048 [£49.54m] last year. The subsidiary companies retain £76,852 [£1.5m] leaving £2,598,627 [£49.5m] to be dealt with in the accounts of the Parent Company. To this amount must be added £1,711,215 [£32.6m], the balance brought forward from the previous year, and £445,000 [£8.5m] transferred from General Reserve – making a total of £4,754,842 [£90.6m] before appropriations. Your Directors propose recommend a final dividend of 6/- per share on the Ordinary Shares of £1 each and 1/6 per share on the ‘A’ Ordinary Stock Units of 5/- each. The interim dividend already paid and the proposed final dividend absorb £1,424,063 [£27m]. After deducting this amount, together with the sum of £2,325,000 [£44.3m] involved in the capitalisation effected in January and a transfer of £500,000 [£9.5m] to Investment Reserve, there is a balance of £505,779 [£9.6m] to be carried forward in the accounts of the Parent Company.

The accounts include provision for the distribution of £264,171 [£5m] for the Staff Profit-Sharing Scheme.

Home Investments

In the field of your Company’s home investments, it should be recorded that during the year British Relay Wireless and Television Limited made a bonus issue of one 5/- Ordinary Share for two 5/- Ordinary Shares. From this issue you Company obtained 134,000 new 5/- Ordinary Shares by way of capitalisation and the Conversion Right attached to your Company’s holding of £500,000 [£9.5m] 7% Convertible Unsecured Loan Stock 1967-1968 was increased from 184 to 201 shares for each £100 of stock. In March 1960 British Relay Wireless and Television Limited made a rights issue of two new 5/- Ordinary Shares for five 5/- Ordinary Shares and your Company subscribed for 562,800 new Ordinary Shares of 5 at 19/- each, which was its entitlement in respect of its shareholding and under the terms of the Loan Stock Trust Deed. The Stock is convertible on the 30th September 1961. The shares to which your Company would become entitled on conversion would, if there is no change in the present market price, have a value of approximately £1,100,000 [£21m]. British Relay Wireless and Television Limited has recently made a major extension in the Glasgow area and your Board remains confident that this investment will continue to grow.

New Franchise Acquisition

The subsidiary company which handles the sale of Muzak is developing most satisfactorily and a wide range of customers, including Banks, Hospitals, Hotels and Factories as well as Supermarkets, Restaurants and Shops, are installing this service. In the course of the current year operations have been extended to Birmingham and will shortly be followed by similar expansion in Manchester. In this connection shareholders will be interested to learn that we have acquired the Muzak franchise for Australia and New Zealand and it is felt that there is great opportunity for development of a background music service in this area.

Pye Records, in which your Company has a 50% interest, has been largely reorganised and the new plan of direct distribution to retailers has proved an outstanding success. This, together with the excellent reception given to the ‘Golden Guinea’ records, has had a marked effect upon the gramophone industry as a whole.

Your Group’s British production subsidiary ITC-Incorporated Television Company Limited continues to make good progress, During the past year the number of commercial television stations throughout the world has more than doubled and we are now actively selling programmes in a continually expanding market. The series ‘Danger Man,’ which is still under production Elstree, has been sold over the full Canadian network at a price higher than that previously paid for any similar series. Further series and pilot films are in the planning stage and will shortly commence production.

Overseas Investments

As regards investments overseas in the USA, Independent Television Corporation Inc., which, as at 30th April 1960, we held a 50% participation, has continued to handle the distribution of your Company’s film productions and has achieved a turnover of close to $10,000,000 [$103m]. During most of the period under review conditions have been particularly difficult, largely because of the increasing tendency by the three major television networks to assume an attitude of inflexibility towards programmes proposed by the independent producing companies. Recently, however, there have been signs of a slight improvement in business generally and your Board remains of the opinion that it is vital for the Group to have a direct outlet to the American market.

Since the end of the financial period under review we have purchased the balance of the share capital of Independent Television Corporation Inc. at a price which your Board regards as satisfactory. Having acquired control of the company we have taken steps to strengthen the management and to reduce the overheads of the operation and are confident that in time, and with adequate product available for distribution, this company should prove profitable to the Group. Nevertheless, in view of present uncertainties, you will see that your Board, as a measure of prudence, has set aside in the accounts before you a sum of £500,000 [£9.5m] to Investment Reserve.

In Canada your Company has purchased 25% (the maximum permitted under Canadian law for non-Canadian investors) of CJCH – the Halifax, Nova Scotia, radio station which has been awarded the licence for independent commercial television in that area.

The diversified interests of your wholly owned Australian subsidiary continue to prosper. Commercial radio in general is maintaining its level of profit and commercial television is expanding rapidly. The Sydney Commercial Television Station showing increasing profits and the Queensland and Adelaide Stations are rapidly advancing to profit-making stage. Altogether the Group’s television investments in Australia, which have a book value of nearly £250,000 [£4.8m], have grown in value to a sum greatly in excess of the amount invested. Since the end of the financial period under review ATV (Australia) Pty. Limited has sold the Artransa studios and the film production side of the business to Station ATN, the Sydney Commercial Television Company, in which we hold 9.7% of the share capital. We have retained the profitable radio transcription side of the business.

Level of Acceptability

All these investments business at home and it should ancillary to the Company’s main be recognised that the success of forward in the accounts of the any independent television company must depend upon the degree of popular acceptance of its those programmes by those members of the British public whom it serves. Here, it is noteworthy to add that during the calendar year January to December 1959 the level of acceptability in London (where the weekday programmes are provided by another company) has been 69% against the BBC’s 31%, whereas in the Midlands (where Associated Television Limited has the five-day operation) during the same period the level of acceptability has been 74%, against the BBC’s 26%.

Documentary and Religious Programmes

Despite the fact that such popular productions as Mr. Val Parnell’s ‘Sunday Night at the London Palladium’ have continued to occupy a high place in the ‘Top Ten,’ your Company has been responsible also for such serious documentary programmes as ‘We Dissent’; ‘The Western’ – an enquiry into the popularity of Western films; a medical programme, ‘Fear Begins at 40’: ‘The Art of Architecture’; the series of five lectures by Sir Kenneth Clark on ‘Revolutionary Painters’; the lectures on British Prime Ministers by Dr. A. J. P. Taylor; and the ‘Right to Reply’ series in which Mr. William Clark interviewed among others, Mr. Selwyn Lloyd. Mr. Hugh Gaitskell, the late Aneurin Bevan, Father Trevor Huddleston, M. Jacques Soustelle, M. Hammarskjöld, the late John Foster Dulles, Mr. Krishna Menon, Mr. Henry Cabot Lodge, Mr. Paul Hoffman, and Mr. Norman Manley, Prime Minister of Jamaica.

It will be remembered that Associated Television Limited was the first company to introduce regular religious programmes in Sunday television and those who took part during the past year included their Graces the Archbishops of Canterbury and York, the Bishops of Kensington, Lincoln, Manchester, Woolwich and Bedford, the Roman Catholic Archbishop of Liverpool, Dr. Heenan, Dr. Donald Soper and Lord Woolton.

Notable Achievements

Notable also have been those series which, while serious in content, have nevertheless secured maximum audiences. The series ‘Emergency – Ward 10’ has throughout the greater part of the year played to a weekly audience in excess of 20 million viewers. The new series ‘Probation Officer’ has proved equally successful and has earned wide praise from social workers and the Church alike.

Among British companies, your own Company has maintained its lead in the field of international television film production. In addition to such series as ‘Four Just Men’ and ‘Danger Man,’ produced in this country, the Company is just completing a series, ‘Whiplash,’ in Australia.

Company’s Major Role

Your Company has continued to play a major part in the independent television industry itself. Your Deputy Chairman, Mr. Norman Collins, has for the past year acted as Chairman of the Independent Television Companies Association and is currently also the Chairman of Independent Television News Limited, the company which provides the news bulletins for all stations. Mr. James Drummond, the Financial Director of your Company has for the past year acted Chairman of the General Purposes Committee of the Independent Television Companies Association. Mr. Bill Ward, Productions Controller of your Company, is the current Chairman of the Society of Film and Television Arts and I am pleased to place on record that he is the recipient of the Award of the Guild of Television Producers and Screenwriters for the best Light Entertainment Producer of 1959.

The Industry’s Growth

The television industry as a whole continues to grow and it is pleasing to note that during the year under review the ITA has appointed new companies to serve East Anglia and Northern Ireland and has erected a satellite station to give coverage to the Dover area.

By April 1960, 47,578,000 viewers were within reach of programmes broadcast from the ITA transmitters and the average total peak viewing audience for independent television is now over 13,000,000, compared with the BBC’s 5,500,000, as measured by TAM in homes with a choice of programmes.

Your Company’s operations have from the outset been divided between London and the English Midlands and the proportion of locally produced programmes in the Midlands is higher than that of any other independent company.

Your Company, nevertheless, continues to feel that an uninterrupted seven-day-a-week operation in any one area is calculated to provide the most satisfactory service to viewers, and your Company again places on record the fact that, in the public interest, it would welcome the introduction of new stations providing alternative services, so that genuine competition could be assured.

Relations with the Independent Television Authority, under its Chairman Sir Ivone Kirkpatrick, G.C.B., G.C.M.G., have been most closely maintained and I would like to express the gratitude of your Board and more particularly of the Executive Directors for the unfailing service rendered by the officers of the Authority at all levels

Tribute to Management and Staff

As in other years I would, as Chairman, like to pay tribute to the services rendered by the Management. Your Company’s Managing Director, Mr. Val Parnell, and your Deputy Managing Director, Mr. Lew Grade, have continued not only to shoulder the heavy responsibility of the manifold interests of the Company but have added to their other duties by arduous business missions abroad. In addition, non-Executive Directors have continued to render most valuable services to the Company. They have given generously of their time and I would like to express my thanks to them.

Finally, I am happy to report that the Staff in all departments continue to reveal all those characteristics of enthusiasm which have served to build up the Company and I am sure the shareholders will wish to join me in thanking them for their loyal services rendered during the past year. It is gratifying that the Staff Profit-Sharing Scheme again enables the Company to show its appreciation of their efforts.

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