• Last time we told how Val Parnell brought modern quick-fire variety to the London Palladium for the first time and then, after the war, started a season of international variety . . .

FIRST American to top the bill under the new regime at the London Palladium was Mickey Rooney. But Mr Rooney failed to please either the public or the critics. Yet, if he had heeded “The Guv’nor’s” advice the story might have been very different.

At the Monday morning run through, showman Val sat in the empty stalls and watched Rooney run through his act. He crammed in everything—singing, dancing, playing drums and a few impressions.

“You’re doing too much”, Val Parnell told him. “Your act lacks cohesion. It’s too scrappy, much better to slow it down”.

But the star from Hollywood thought he knew better . . .

Another American artist who didn’t do too well was the comedian Jack Carson. His opening night was hardly a success. This was largely due to his insistence on including comedy material which Mr Parnell told him would have little appeal to London audiences. Afterwards he changed it and had a much better reception.

CHARLES HENRY’S PUSH

After congratulating Danny the Marquis said he thought his cousins would also like to see the show. Danny, not realising who they were, said “Sure, bring them along”.

And they came, too — Princess Elizabeth and Princess Margaret. They brought their parents along as well — the King and Queen. Val Parnell was there to welcome them, the first time a reigning monarch had ever been to an ordinary music-hall performance and the first time Royalty had sat in the stalls with the paying public.

But Val Parnell not only brought vaudeville back to London, but according to Jack Benny he did the same for New York too.

Writing about Val Parnell in “The Hollywood Reporter”, Mr Benny has pointed out that the fabulous success of the variety seasons at the London Palladium were also responsible for the reopening of the Palace Theatre, New York, as a vaudeville house with Judy Garland topping the bill and Max Bygraves in support.

MAX’S CHANCE

Judy Garland was the most nervous star. She was so frightened on her opening night that Charles Henry, Val Parnell’s production manager who still assists him in our “Sunday Night at the London Palladium” series, had to push her on the stage from the wings.

Another nervous performer — Danny Kaye.

“A great worrier beforehand”, says Mr Parnell, “and until he got started, a bundle of nerves. But from that moment on he was terrific”.

Danny Kaye was Val Parnell’s biggest success. He followed Mickey Rooney into the London Palladium in the summer of 1948 and certainly did more than any other performer to establish the London Palladium as the great Mecca of international vaudeville.

On the second night of his opening, Vai Parnell took the Marquis of Milford Haven back stage to meet the American star. The theatre had been packed and the Marquis had seen the show standing at the back of the circle.

It was “V.P.” who gave Max his first big chance too, putting him into the Palladium to deputise for Ted Ray. And he found Ted Ray at the Palace, Luton, giving him a free pass for the Palladium so that he could watch other performers, improve his style.

Peggy Mount came down from Wolverhampton Rep. to audition for the role of the witch in a Palladium pantomine. She was so good that Vai Parnell gave her the job on the spot—after the dress rehearsal increased her salary. It was her first West End part.

LAS VEGAS

The fame of the Palladium bills even reached Las Vegas. The year before ITV started “The Guv’nor” took a party of British performers for a six weeks season at the Desert Inn. They were billed as “Palladium Varieties” and offered a typical London Palladium show — slick and fast moving with twelve acts on the bill.

On opening night, the manager of the Desert Inn took Mr Parnell aside.

“You’ve too many acts, you’ll run overtime” he told him.

“How much do you bet?” Val Parnell replied.

“I bet you 200 bucks [$2,300 in today’s money, allowing for inflation – Ed] you don’t get through the show under ninety minutes”, said the manager.

WITH A SMILE

The two men shook hands and when Val’s “Palladium Varieties” closed in seventy-five minutes the American paid up with a smile. He didn’t want his customers kept away too long from those gaming tables.

This, then, is something of the show business background to ATV’s Val Parnell.

In the world of British entertainment, his position is unique.

And it was only natural that when Lew Grade — then a variety agent — foresaw the possibilities of commercial television he should seek the help of the man for whom he had supplied so many of the star acts for the London Palladium and the Moss circuit.

“Val” he told him over the phone “You’re in commercial television”.

“But — what’s all this Lew?” asked Val.

“Don’t argue” said Lew “Leslie (his brother) and I are forming a company to apply for a TV licence … and we want you in with us”.

Val Parnell asked for more details — and agreed. But a few minutes later he was back on the phone … to Lew.

“Lew, there’s a snag in this” he told him “I’ve an exclusive contract with Moss Empires and I’ll have to get an okay from that Board”.

This was obtained and it followed that when Moss Empires finally entered the commercial television field in 1953 through its shareholding in ATV, Val Parnell was put on the TV Board. A few months later he was asked by the Board to take over the managing directorship of the company with Lew Grade as his deputy. Things remained this way until last year when he resigned as Managing Director.

But, as he has already indicated, Val Parnell will still be with us … as executive producer of his “Sunday Night at the London Palladium” series and he also retains his seat on ATV’s Board.

Writing in the Daily Mirror at the time his resignation was announced, Clifford Davis called Mr Parnell “The Last of the Great Showmen”.

I can’t think of a better description … or a finer tribute.

The post The Val Parnell Story: When Judy Garland had to be pushed on… appeared first on THIS IS ATV NETWORK from Transdiffusion.

THE Midlands administrative staff move into new offices this month.

The company has acquired the entire ground floor of a new multi-storey building in Edmund Street, Birmingham.

The new offices will be light and airy. They will also use the Open Plan principle which has proved so successful at ATV House in London.

Muzak has been installed to provide background music and the accommodation provided is the Midlands match to London’s ATV House in Great Cumberland Place.

Although the move has not been made yet — final touches are still going on — the building was officially opened last month by Alderman Garnet Boughton, Lord Mayor of Birmingham, by cutting a length of video tape at the entrance.

The ceremony was attended by Mr Prince Littler, Chairman of ATV; Mr Norman Collins (Deputy Chairman); Mr Val Parnell (Managing Director) and Mr Lew Grade (Deputy Managing Director).

The company’s London delegation were welcomed by Mr Philip Dorté, the Midlands Controller.

After the opening 150 Midlands dignitaries were entertained to lunch at the Grand Hotel. The Lord Mayor congratulated the company on its success and referred to television as “Another star in the firmament of our city”.

CHAIRMAN’S REPLY

In reply to the Lord Mayor’s speech, Mr Littler recalled that it was nearly five years since Independent Television had been inaugurated in the Midlands.

“In those five years ATV’s audience in the Midlands has grown from a handful in 1956 to well over four million today”, he said.

“Nowadays, 71 per cent of the Midland television audience with a choice of programme elects to view ATV in preference to the BBC, whose share is 29 per cent”.

Mr Littler added that although Mr Dorté the Midlands Controller met so many local people, and members of the Board visited Birmingham regularly, this was the first occasion for four years his Board of Directors, as a whole, had played host to a reception gathering of Midland civic, ecclesiastical and ambassadorial leaders.

ALPHA PROGRESS

Meanwhile, work continues on the new Alpha studios. Here, incidentally, the workers probably down tools more often than any other builders in Britain. And it’s all on account of TV.

“We had to issue programme bulletins to the foreman to enable him to call a stop to all noise while we are on the air”, Frank Beale, General Manager of Alpha, told me. While noise is a headache for the television staff, office accommodation for the production staff is at a premium too. But as soon as the new building is completed (August is the target month) there’ll be six floors of space with comfortable accommodation for everyone. But the building operations haven’t always been inconvenient.

SPECIAL FEATURES

One of ATV’s best “Lunch Box” shows was actually done on the building site. Special features in the new Alpha building will be: a control area on the top floor; a canteen covering the whole second floor and electric underfloor heating.

“We’ll turn on the current at night, and off in the day-time. This should keep the building comfortably warm all day” said chief engineer David Whittle.

The post New offices for midlands appeared first on THIS IS ATV NETWORK from Transdiffusion.

WHAT is the difference between television and journalism?

When I made the happy decision to journey from Fleet Street to Cumberland Place I put the question to Mr Norman Collins, ATV’s Deputy Chairman.

We are both, by the way, children of Fleet Street, for when I joined the Sunday Express in the ‘twenties your Deputy Chairman was a fully paid-up member of the National Union of Journalists making a name for himself on the News Chronicle.

“Newspapers freeze the picture. Television animates it. That’s about it”, said Mr Collins.

It is a first-rate summary, for compare the contents of your daily newspaper with a day’s television programmes:

The News

• Both mediums present news — news of politics, industry, sport, crime and punishment, human and violent happenings. (NOTE: We are always reading headlines blaming TV for crime, but what about the newspapers blaming themselves for causing crime by glorifying sex and sin in a way TV never does?)

• Both mediums devote a good deal of attention to entertainment. (NOTE: Newspapers loftily criticise those quiz show prizes but themselves offer such inducements as £10 a week for life or half a dozen new cars in order to attract readers. I don’t blame them, but why do they blame TV?)

• Both mediums publish fiction — TV with plays and comedy situation shows, newspapers with strip cartoons and jokes. (NOTE: Nothing I have read in the newspapers for years equals in moral value and reforming zeal our own “Probation Officer” or “Emergency — Ward 10”.)

• Both mediums make money out of advertising. (NOTE: Four newspapers have died this year because they did not secure sufficient advertising).

DO I MAKE MY POINT?

Newspapers are completely free and under no form of supervision or censorship.

They may be pornographic (some of them are).

They may be biased politically.

They may suppress news, colour it, print it upside down if they wish.

Nor is there any limit to the amount of advertising they may carry, or the kind of advertising either.

I would not have it otherwise, nor would any thinking person.

But television operates under an altogether different set of rules.

The BBC is responsible to the Postmaster-General. The Commercial Companies are responsible to that same gentleman through the Independent Television Authority.

If a political argument is carried on via television it must be balanced as between one viewpoint and another.

The strictest rules govern references in plays to drink, drugs, sex, suicide and the like, and woe-betide the play producer who infringes. Advertising too is strictly controlled as to volume and content.

Freedom…

It seems incongruous to me that while the newspapers are free to say just what they like about television programmes, there is no right to reply with equal freedom on TV!

For us the “balanced” programme is the only way; we cannot do television propaganda on our own behalf.

Is there much difference between working for television and working for a newspaper?

As a newspaper Editor, I was able to dream up an idea in the morning and see it in my columns the next day. That was a great advantage.

Television can work that fast on news happenings, but not so fast in the development of programmes.

A good documentary takes several weeks, often months, to mature.

Urgency, Too

A play is in rehearsal for up to three weeks before it is ready and, as in the theatre, is in preparation for months if script writing, rewriting, casting and set designing are included.

Yet there is always a tremendous sense of urgency in ATV House.

I was in fact fairly blasted into activity on my first day when I was asked by Mr Lew Grade to give him a hand with a new series called “Deadline Midnight”.

Five Weeks

The series was due on the screen in five weeks from that date and by the time Hugh Rennie the producer and I had made our deadline I felt that I had jumped out of the Fleet Street frying pan into the ATV fire!

The office of ATV’s Managing Director corresponds to the Newspaper Editor’s sanctum.

It is here that Mr Val Parnell and his deputy Mr Lew Grade get things humming long before 9 a.m. every morning.

The office jointly occupied by Editor-in-Chief Val Parnell and Managing Editor Lew Grade can be as lively as my own was on V.E. Day in 1945!

Mirror Tour

In fact I would not mind if it were used as the background set for the new series of “Deadline Midnight” plays which go on the air on Saturday, March 11.

I took Rex Firkin, the new “Deadline” producer, to the Daily Mirror office the other week where Hugh Cudlipp, one of ATV’s directors and Editorial Director of the Mirror group, showed him how the wheels go round in Fleet Street.

“Not all that different from ATV” said Rex.

And I have to agree.

The post From Fleet Street to television, there’s always a deadline to beat appeared first on THIS IS ATV NETWORK from Transdiffusion.

Russian viewers to see our O.B.

YURI FOKIN, Russia’s top television commentator, will face an ATV camera next month to introduce the first live outside ITV broadcast from Britain to the Soviet Union.

An ATV outside broadcast unit will be covering the Soviet State Fair at Earls Court, which will open on July 7.

The Russians are sending their own TV producer to direct the unit and the whole operation is part of our reciprocal deal with the Soviet State Committee for Radio and Television.

The first part of the exchange took place last month when British viewers saw our coverage of the British Trade Fair in Moscow.

The Moscow relay was introduced by Mr Norman Collins, Deputy Chairman, from the Foley Street studio.

Originally, the introduction was planned to last four minutes but half way through — since Moscow wasn’t ready — a chalked “Keep Going” notice was put in front of the camera. And Mr Collins kept going — for eight and a half minutes.

Then came the dramatic moment for James Ferman, who directed the relay, to say “Cue Moscow” … and ATV’s first live link with the Soviet capital was on the air.

Our 90 minutes relay also made TV history through the enterprise of ATV commentator Shaw Taylor. Shaw pushed his way through the crowd with a microphone to obtain a TV scoop by interviewing Mr Kruschev.

This was the first time any TV commentator had secured an off-the-cuff comment from the Russian Premier.

The ATV team in Moscow were Bill Ward, Productions Controller; his P.A. Pam Matthews; Len Mathews, Assistant Technical Controller, Communications and Outside Broadcasts; Stephen Wade, Head of Outside Broadcasts; his P.A. Doreen Ayres; floor manager, Bill Glaze and commentators, Shaw Taylor and Reginald Bosanquet of ITN.

ATV’s Russian programmes included a ballet performance direct from the famous Bolshoi Theatre directed by Bill Ward.

Our mobile recording unit, with recording engineer, John Harrison and rigger driver, Cyril Penfold, were also in action recording documentary material for future programmes.

One of these projects has been provisionally entitled “Gorki-street, U.S.S.R.” and will be a Russian equivalent to “Main-street, U.S.A.” in which we depicted the lives of typical American families.

ELSTREE VISIT

The details of the programme we are sending to Russia next month were arranged during a visit to the Elstree Studio Centre and ATV House by a team of Russian television experts.

This was the first time a Russian television delegation had visited any ITV studios.

Heading the delegation was Mr Konstantin Kuzakov, Deputy Chairman of the Soviet State Committee for Radio and Television.

His colleagues were Mr Yuri Fokin, Head of Russian Television News and Mr S. J. Martsenitsen [sic: usually transliterated as S. I. Martsenitsen – Ed], Deputy Head of the Main Department of the Soviet Ministry of Communications.

COMPLETE TOUR

They made a complete tour of the Elstree Studio Centre accompanied by Bill Ward, Stephen Wade, Len Mathews and Technical Controller, Terence Macnamara.

The Russians were particularly interested in the control rooms of Studios C and D and the advanced technical equipment designed by ATV’s own engineering staff.

In the evening the Russians were entertained at a party at ATV House by Mr Norman Collins, Deputy Chairman; Mr Val Parnell, Managing Director; Mr Lew Grade, Deputy Managing Director and Lord Bessborough, Director.

Mr Kuzakov said they would like to prepare a documentary programme on Lenin’s life in London and some kind of musical programme.

His immediate concern, however, was the coverage of the Soviet State Fair next month.

The post Moscow here we come appeared first on THIS IS ATV NETWORK from Transdiffusion.

WHAT IS THE fasted growing show business organisation in Great Britain? The answer must surely be Associated Television. For this company, headed by such entertainment veterans as Val Parnel [sic throughout – it should be Parnell – Ed], Prince Littler and Lew Grade, is now about the strongest in the business.

In the five years commercial television has been established in this country, the rate of ATVs progress has been fantastic. With hardly any experience in the television medium, the Parnel-Littler-Grade combination had, within two years, established an ascendancy over the other contractors in the amount of programmes bought and sold.

Profit

By 1956 the company, through its affiliated production organisation, Incorporated Television Production Company, was sponsoring more TV production than anyone else in the business, and a year later was able to announce that its profit for the period ending May, 1958, was over £4,000,000 [£79m in today’s money allowing for inflation].

Since then ATV has negotiated a deal with Jack Wrather, which has made the company the third largest distributor of television programmes in the world, and, through the purchase of ITPC, strong enough to guarantee a minimum of five television series a year, including the most expensive TV production to be made in Great Britain, “The Four Just Men,” with Jack Hawkins, Dan Dailey and Vittorio de Sica.

Holdings

ATV has also acquired large holdings in Australian radio and television stations, giving them a greater outlet in that country than probably any other television distribution company.

Moreover, ATV has gone into the record business and has purchased a substantial interest in Pye Records, Ltd., the subsidiary of the television and radio manufacturers.

This week Parnel was flying to the States to sign up some of the big American stars who have previously appeared in his London Palladium shows for record contracts with the Pye-ATV recording company. While he is away his colleague Lew Grade, deputy managing director of the company, will be busy with new programmes, some of them bought from America to the other contractors, in readiness for the longer viewing hours which ITV anticipates will be approved by the government for January 1, 1959.

Campaign

The next stage in ATV’s campaign for more power and profit in television will be to try to speed up government approval for the third network being placed at the disposal of the ITV companies. Prince Littler, chairman of ATV, was the first programme contractor to go on record in favour of the third network and requested the company to be given London for five days under any proposed changes instead of its present schedule of London weekends and Midlands weekdays.

Compete

Thus the company would be prepared to compete on equal terms with the present weekday contractor, Associated Rediffusion. Chairman of this company, Paul Adorian, has gone on record rejecting the third network at the present time because of the economic and financial difficulties in the way of its operation.

ATV is also interested in the possibility of commercial sound radio, should it come about in this country. A company has been formed headed by one of the ATV directors, Norman Collins, with a view to operating a commercial radio station if the government gives its approval when the BBC’s charter comes up for consideration in 1960.

Liaison

While ATV has made no move towards feature film production, on the other hand there is a very close liaison between Lew Grade and Parnel and the Eros brothers, Phil and Sid Hyams, through ITPC, of which all were directors, which has led to a number of medium-size British pictures adapted from ATV’s television successes. Such productions as “The Mystery of Planet X” and “The Trollenberg Terror” are two serials which have been produced as feature films by Eros. Another successful serial which is being made into a feature by that company is “Emergency [–] Ward 10.”

Doubtlessly, if feature production becomes more profitable, one of the first steps of ATV will be to set up a company to secure another slice of show business profit.

Already its American partner, Jack Wrather, has been able to combine a successful TV distribution programme with film production. Now that he is associated with ATV in Television Programmes [sic – Programs] of America, Inc., the third largest distributionproduction in the world, the possibility that the organisation will also handle cinema features is not remote.

In other words, ATV has become a world-wide show business entity whose future progress seems at this time of writing to be limitless.

The post The sky’s the limit for Associated TeleVision appeared first on THIS IS ATV NETWORK from Transdiffusion.

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

“I foresee another year of widening opportunity”

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

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

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

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

Television

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

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

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

Film Production

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

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

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

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

Theatre

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

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

Music Publishing, Records & Tapes

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

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

Property

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

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

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

Other Interests

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

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

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

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

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

“Thanks to the policy of diversification your Company is now very soundly based … all monies expended now are an investment for the future”

Results and Dividend

The Group profit of £5,746,000 [£42.4m in today’s money allowing for inflation – Ed] before taxation, as against £7,268,000 [£53.7m] for the year 1973/74, reflects the reduced profitability of the operation of the television franchise and the increase in finance charges.

It speaks highly for the buoyancy of the other subsidiaries that in these circumstances the figure of Group profit should not have been more seriously impaired. Thanks to the policy of diversification the Company is now very soundly based.

Earnings per ‘A’ Stock Unit were 6.51p [40.04p] (1973/74 – 8.64p [63.76p]). The final dividend of 2.05p [15.13p] with the interim of 1.85p [13.65p] already paid, makes a total of 3.9p [28.72p] per ‘A’ Ordinary Stock Unit for the year.

Television

The reduction in the television profits from £3.07 million [£22.7m] to £1.68 million [£12.4m], after a payment of £2.85 million [£21m] as Exchequer Levy, is closely in line with the forecast made last year. Exchequer Levy and Corporation tax together consumed no less than 83 per cent of the profits of the Network.

Film Production

Benefit from investment in film production is never short-term, and profits should not be looked for before the second year. However, with careful forward planning of distribution, all monies expended now are an investment for the future.

I become more and more convinced that personal visits overseas are essential if the needs of the international film and television markets are to be properly understood. During the past year I made a total of 26 such trips.

Theatres

Stoll Moss has enjoyed a good year. “Billy” at Drury Lane has proved the most successful musical since “My Fair Lady”, and “Hans Andersen” at the London Palladium has established a new record as a family musical that has run from Christmas into the summer months and beyond. The results of Bermans & Nathans, the theatrical costumiers, though disappointing show improvement over last year.

Records, Tapes and Music Publishing

The success of Pye Records and Precision Tapes has proved outstanding in every way, and with profits now exceeding £2 million [£14.8m], these companies represent a major force within the musical industry.

ATV Music Publishing has again shown itself a source of major strength and is now one of the most important operations of its kind in the world today.

Ansafone, acquired in 1973 has continued to show steady growth and an entirely new range of apparatus has been developed for Continental and American markets.

Property

The results of Bentray Investments, at over £1.7 million [£12.6m], are most satisfactory. The company is responsible for 156 properties and in the major development — the ATV Centre, Birmingham — 18 complete floors of the Tower have already been let.

Copies of the full Report and Accounts are available from the Secretary, Associated Television Corporation Limited, ATV House, 17 Cumberland Place, London, W1A 1AG.

ATV Corporation interests, in addition to the 7 day-a-week television franchise for the Midlands area, include film making, theatres, record, tape and music publishing companies, the manufacture and supply of telephone answering equipment, theatrical costumes, and merchandising and property companies.

ASSOCIATED TELEVISION CORPORATION LIMITED

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

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

Results and Dividend

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

Television

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

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

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

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

Diversification

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

Film Production

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

Theatres

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

Records, Tapes and Music Publishing

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

Property

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

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

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

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

Results

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

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

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

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

Prospects for Television

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

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

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

Export Potential

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

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

Theatres

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

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

Records & Tapes

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

Music

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

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

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

Property & Investment

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

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

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

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

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

Directorate, Management and Staff

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

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

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

“Another highly satisfactory year…”

The Sixteenth Annual General Meeting of Associated Television Corporation Limited was held in London on 23rd September, 1971. The following are extracts from the Statement by the Chairman, Lord Renwick of Coombe, K.B.E., for the year ended 28th March. 1971:

This has been another highly satisfactory year; and one that holds great promise for the future.

For the third time in its history, your Corporation has been honoured by the Queen’s Award for Export Achievement.

I will now refer to the improved position in which your subsidiary Company, ATV Network Ltd., finds itself. During eleven of the twelve months under review the whole television industry was still labouring under the load of the high-rate Television Advertising Levy. In that single year ATV Network had, apart altogether from normal Corporation Tax, to pay a Levy of no less than £3,865,000 [£46.4m in today’s money, allowing for inflation – Ed]. It was to this level of forfeiture that I was referring in my last Statement when I said that if the rate of Levy were not reduced, Independent Television would no longer be commercially viable.

I therefore wish publicly to express my thanks to Lord Aylestone and the Authority for all that they did in presenting the facts of the case to the Government. It is not too much to say that the resultant action of the Minister in amending the scale on which the Levy is extracted from the advertising revenue of the Companies prevented inevitable financial collapse within certain sections of the industry.

Bearing in mind the current buoyancy in advertising revenue and the reduced rate at which the Levy is now operative, it is possible to view the future of the Network Company with a degree of confidence that would have been quite unthinkable a year ago.

Broadcasting Hours

It is a source of further encouragement that the awaited permission for further broadcasting hours cannot now be long delayed. ATV Network is already fully equipped to provide the programmes. All that is needed is the Minister’s approval.

Also, at the moment, only the BBC offers a dual service. There is no reason whatsoever why this should be so. It is wholly within the competence of the industry as it is at present constituted to provide ITV 2, and your Directors will continue to press for this highly desirable extension of the national broadcasting service.

Film Production

The current schedule of production is the strongest in the Company’s history and overseas sales — notably to the American networks and to Australia — have reached a level never previously achieved.

ATV Centre

The ATV Centre in Birmingham, of which the Network studios occupy a third of the total site area, is in itself a major piece of civic development. It represents an investment in excess of £12 million [£144.2m]. Building operations have throughout been most commendably on schedule, and the whole complex of office block, hotel, exhibition hall, restaurant and shops will be revenue earning by 1973.

Stoll Theatres

ATV is proud of its position in the theatrical world. Stoll Theatres under the chairmanship of Mr. Prince Littler has enjoyed a most excellent year. In total, half-a-million more tickets were sold at the box office than in the previous year and the profit figure improved by £96,000 [£1.2m].

Music

ATV is equally proud of the positions which it occupies in the world of music and music-publishing. The new management of your wholly-owned subsidiary company, Northern Songs, is certainly to be congratulated on its success. Moreover, the jointly-owned Company, ATV-Kirshner, has now established a worldwide organisation that is trading profitably in 14 countries.

Similarly, Pye Records which has steadily earned an increasing share of the disc market shows continuing improved results. The profit figure for music and records of over £1,800,000 [£21.6m] is substantially higher than earlier it had been felt safe to estimate.

Audio and Video Cassettes

Looking to the future when the use of audio cassettes will become wide-spread both in the home and in the car, your Board felt it wise to acquire the whole share capital of Precision Tapes Ltd., previously owned only 50 per cent by the Group. Already the sales of cassettes produced by this Company are mounting most encouragingly.

Again, in order to keep level with technical innovation your Corporation has entered the rapidly expanding market for video cassettes — the device which enables programmes of the viewers’ own choice to be shown on the home television screen. The potential here is enormous and, to exploit to the full the global opportunities which the video cassette offers, ATV has entered into 50-50 partnership with one of the three great American networks, the American Broadcasting Company. The entire programme resources of entertainment, information and education of both organisations have been pooled. It is an acknowledgment of the unique standing of this new Anglo-American enterprise that the National Theatre Company in London should have granted it the exclusive video cassette rights of the National Theatre productions.

Finally, for the future development of the Corporation, ATV has announced that it will seek to be active in Commercial Broadcasting as soon as legislation permits. ATV will both apply for a licence in its own right and in conjunction with newspapers, and will be ready and equipped to supply full programme services to other operators.

Summary

The Group, now widely diversified within the whole field of entertainment as well as in property, is both more securely based and more capable of further development than ever before in its history.

It is here that I must pay tribute to the one man who more than any other has made it so. When, for the third time, the Corporation was honoured with the Queen’s Award for Export Achievement, it was once more recognition of the fact that Sir Lew Grade is the master-salesman of the entire television industry. But it was more than that. It was also a recognition of the fact that Sir Lew is television’s supreme impresario. Indeed, his singleness of purpose, his energy and his farsightedness are displayed in every aspect of the Corporation’s activities.

Management and Staff

I will close by saying on behalf of the Board how grateful I am to members of Management and Staff at all levels in Birmingham, Elstree and London, as well as to our Corporation colleagues abroad in New York, Toronto, Sydney, Paris and Lausanne.

The post ATV financial results: 1971 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 14th Annual General Meeting of Associated Television Corporation Limited was held at ATV House. Great Cumberland Place. London, W.1. on 25th September, 1969 at 12 noon.

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

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

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

GROUP RESULTS

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

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

BENEFITS OF DIVERSIFICATION

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

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

TELEVISION AND RELATED ACTIVITIES

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

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

FILM PRODUCTION AND DISTRIBUTION

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

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

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

THEATRES

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

MERCHANDISING AND PUBLISHING

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

RECORDS AND MUSIC

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

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

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

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

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

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

PROPERTY AND INVESTMENT

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

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

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

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

OTHER ACTIVITIES

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

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

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

MANAGEMENT AND STAFF

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

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

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

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

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

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

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

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

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

GROUP RESULTS

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

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

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

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

DIVERSIFICATION

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

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

TELEVISION AND RELATED ACTIVITIES

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

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

PROGRAMMES FOR ALL SEASONS

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

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

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

FILM PRODUCTION AND DISTRIBUTION

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

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

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

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

THEATRES

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

RECORDS AND MUSIC

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

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

PROPERTY AND INVESTMENT

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

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

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

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

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

OTHER ACTIVITIES

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

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

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

MANAGEMENT AND STAFF

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

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

“POLICY OF PLANNED EXPANSION WILL BE VIGOROUSLY PURSUED”

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

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

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

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

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

GROUP RESULTS

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

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

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

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

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

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

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

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

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

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

ATV NETWORK

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

EXPORTS

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

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

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

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

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

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

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

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

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

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

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

THEATRES

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

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

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

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

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

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

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

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

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

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

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

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

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

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

TOP DIRECTION — YOUR BOARD – INDUSTRIAL RELATIONS — ATV STAFF

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

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

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

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

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

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

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

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

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

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

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

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

“Results no less than excellent”

Profits, tax and levy

The Consolidated Profit and Loss Account shows a profit for the Group, before Levy and taxation of £11,059,311 [£171m in today’s money allowing for inflation – Ed]. This represents an increase of £1,699,370 [£26.3m] over the results of the previous year (£9,359,941 [£144.7m]).

Moreover, this year’s trading has had to bear the full brunt of 12 months’ Levy on Television Advertising Revenue. Thus, the sum of £5,432,366 [£84m] had to be set aside for this purpose, as against the sum of £3,837,593 [£59.3m] for the 8 months of the year to the 4th April, 1965 — the year in which the Levy was introduced.

Taxation for the year amounts to £2,780,325 [£43m] as against last year’s figure of £2,752,639 [£42.6m]. In total, therefore. Levy and taxation have consumed no less than £8,212,691 [£127m] (74%) of the Group profit.

It should furthermore be noted that this figure of Levy and taxation payable to the Exchequer is in addition to the sum of £985,253 [£15.2m] payable to the Independent Television Authority for the rental of the London and Midlands Transmitters.

Nevertheless, the Group profit after Levy and taxation amounts to the final figure of £2,846,620 [£44m] as compared with £2,769,709 [£42.8m] for the previous year.

EFFECT OF GOVERNMENT POLICY

In June your Directors announced the intention of recommending a final dividend of 10%, making a total of 26% for the year. The year’s accounts were accordingly drawn up on this basis.

In view, however, of the Government White Paper, “Prices and Incomes Standstill”, I have to tell you that your Directors now feel bound to recommend that the final dividend should be 6½% and not 10%, thus leaving the total dividend at 22½%, as for the previous year.

EXPANSION

The Chairman of a Company which is expanding so rapidly as Associated Television naturally finds himself at a disadvantage in preparing a Report which must suffer some delay before it can reach the hands of the shareholders.

Accordingly, even though these developments have occurred after the end of the financial year under review, I feel that I should report several new acquisitions to your Group’s interests.

First, there is our joint undertaking with Chappell’s in music publishing through our acquisition of a 50% interest in two companies New World Music Limited and Jubilee Music Inc. Secondly, there is the 50% interest in a new publishing company to be formed jointly with the International Publishing Corporation to operate in the general field of educational and industrial training publications and in connection with television programmes.

Thirdly, we have now acquired the remaining 50% of Pye Records making the company a 100% subsidiary of ours.

In addition we have acquired the remaining 49% minority interest in J. Rosenthal (Toys) and are arranging for the acquisition of a 7½ % interest in an insurance company already established by IPC, Reeds Paper Group and Eagle Star.

THEATRES

In my last Report, I referred to your Company’s “largest and most important single investment” in the shape of the acquisition of the whole of the share capital of the Stoll Theatres Corporation and of Moss Empires.

I am now happy to be able to speak of the eminently satisfactory – indeed substantially improved – results of the Theatre Croup, under the Chairmanship of Mr. Prince Littler.

A new record was established for the London Palladium; and, throughout the West End, our theatres played to well-filled houses. Conspicuous among other successes has been Noël Coward’s repertoire of three plays at the Queen’s Theatre which played to capacity business, and “Hello, Dolly!” at Drury Lane.

It is nevertheless sad that the theatre industry, so recently relieved of the burden of Entertainment Tax, should now be saddled with rising costs deriving from the Selective Employment Tax.

ATV NETWORK

In my last year’s Statement I referred to your Company’s policy of “planned expansion”. As this expansion of activities extended into fields other than television, it became increasingly apparent to your Board that a completely new Company framework was required. Accordingly, steps were taken to reconstruct the Group in such a way that the parent Company would become purely the holding Company of its various trading subsidiaries – including a new subsidiary company to be entrusted with the Television Service operated under licence from the Independent Television Authority.

In April, 1966, this major move was completed. A subsidiary company, ATV Network, was created. It was to this new company that, with the agreement of the Independent Television Authority. the Programme Contract with the Authority and the ancillary television activities were transferred.

TV WORLD

The Midlands programme journal for Independent Television is published by Odhams Press Limited on behalf of ATV Network and ABC Television Limited. The success of the magazine has been unprecedented, and sales have risen steadily to well beyond the 700,000 mark.

MERCHANDISING

In none of your Company’s subsidiaries has expansion been more rapid or more satisfactory.

The publishing venture, in association with the News of the World Organisation of the two magazines “TV Century 21” and “Lady Penelope”, has proved eminently successful, and their combined circulation is over the million mark.

The new subsidiary company, J. Rosenthal (Toys), which markets products associated with television programmes is now equipped to become the major distributor in this field, and shows substantial profits.

COLOUR

Colour on the 405-line standard could be made immediately available to the entire British receiving public in the existing VHF services. Those viewers content to watch only black-and-white pictures would remain entirely unaffected. If 405-line Colour Television were authorised in the New Year, ATV Network alone could immediately contribute not less than 20 hours of Colour programmes a week to the Independent Network.

In order that this country should not lag behind in the development of Colour Television, we therefore advocate the earliest possible introduction by the ITA of colour on the 405-line standard in the existing VHF service. By this Autumn, ATV Network’s Studios in London and Elstree will be equipped for Colour operations in the various international line-systems.

EXPORTS

For the first time in television history, British series have been purchased simultaneously by all three American TV Networks. Columbia Broadcasting System purchased 45 episodes of “Secret Agent” (known to British viewers as “Danger Man”), the National Broadcasting Company purchased “The Saint”, and “The London Palladium Show”, and the American Broadcasting Company purchased “The Baron”, “Court Martial” (jointly produced with MCA), and “McGill”, a new series for next season. The triple jackpot of selling to all three networks has at last fallen into British hands.

I am glad, moreover, to be able to say that, for the Eastern Hemisphere, the sales curve of ITC continues to point sharply upwards. Indeed, for the first six months of the current calendar year total sales approximate to the whole of the previous 12 months’ turnover. These sales have been made in more than 50 different countries.

FILM-MAKING

Another intensive programme of film production is currently in hand, including “The Saint” and “McGill” together with a new Patrick McGoohan series “The Prisoner”.

PYE RECORDS

This is the first Annual Report in which I am able to refer to Pye Records as a wholly-owned subsidiary, even though the results contained within the Consolidated Profit and Loss Account reflect only the dividends received under the 50% ownership which then existed.

During the past year, Pye Records has maintained a leading position within the industry. Although in the United States the sudden vogue for British Pop records has somewhat declined, sales have remained good and the overseas sales of Pye Records in other markets have shown a steady improvement.

THE MIDLANDS

At no time in your Company’s history, has the operation of the weekday licence played so conspicuous a part in Midland affairs and the scope of local programming has notably increased.

The first successful five-day-a-week serial, “Crossroads”, originates in Birmingham, and has proved to be nationally popular.

Another Midlands ATV Network programme – this time designed for the young – “Tingha and Tucker” has, as a result of its overwhelming local popularity, now won itself a place in the national Sunday network.

MUZAK

It is all the more agreeable, bearing in mind the originally slow acceptance of this commercial and industrial amenity, to be able at last to refer to its established success. Growth has been rapid, and the daily Muzak audience in the British Isles now numbers some 2,000,000 persons.

BOWLING

In the year under review, the ten bowling centres, comprising 273 bowling lanes, produced satisfactory results showing an improvement over the previous year.

The effects of the Selective Employment Tax cannot do other than affect future profitability.

MANAGEMENT AND STAFF

The debt which your Company owes to the efforts of its Managing Director, Mr. Lew Grade, can in no way be exaggerated. His energy, flair and foresight are apparent in every phase of the Company’s operations and, once again, I most gladly take this opportunity, on your behalf, of thanking him.

I am glad, too, to place on record how fortunate I feel that the Company was to secure the services of Mr. Robin Gill as Deputy Managing Director. The top management team of Mr. Lew Grade and Mr Robin Gill has proved an inestimable asset in the Company’s manifold and expanding affairs.

No less do I and my co-Directors wish to thank all members of Staff throughout the Group. The present healthy and vigorous condition of the Company could never have been achieved without their loyal and devoted work.

The post ATV financial results: 1966 appeared first on THIS IS ATV NETWORK from Transdiffusion.

“Trading Profit £5.5 million”

“Another Excellent Year”

In my 1964 Statement I was able to report “an excellent year’s trading”, and I added that I had “every confidence in your Company’s prospects for the ensuing year”.

I am now happy to be able to say that my prediction has proved justified. Associated Television Limited has enjoyed another excellent year — in fact, despite the effects of 8 months’ levy on turnover, the second most profitable in the 10 years’ history of your Company’s activities.

The consolidated Profit and Loss Account shows that the profit of the Group, before taxation, stands at £5,522,348 [£88.9m in today’s money allowing for inflation – Ed] for the 52 weeks to 4th April, 1965.

EXPORTS

This year has been historic as the first in which ATV has broken into the American networks. The series “Danger Man” — re-named “Secret Agent” in the United States — was sold to CBS. Its reception was unprecedented. Following upon three shows which hod failed one after the other it promptly reached first place in the national ratings for programmes in that time period. In consequence, CBS has now placed an order for a further series of “Secret Agent” for next winter. The United States contracts for “Secret Agent” alone ore worth more than $3,000,000 [$30m].

The unique puppet series, “Stingray”, has now earned the highest prices ever paid in syndication — that is to say in sales to individual stations throughout the United States The revenue from this series will, it is estimated, exceed $1,500,000 [$15m] in the United States alone.

During the year 1964/65, overall exports to some 100 Countries throughout the world have resulted in a Sales revenue of nearly £2,000,000 [£32.2m]; and in the current year this figure should be passed by a very substantial margin.

EXCHEQUER LEVY

The levy on turnover, collected by the Independent Television Authority on behalf of the Exchequer, will be in force for the whole 12 months of the ensuing financial year (1965/66). This levy rises at the top end of the scale to no less than 45% of advertising receipts — the highest rate of discriminatory taxation in the history of British industry.

It would be idle to pretend that the effect of the levy on your Company’s profits will not be adverse. It cannot be otherwise. On the other hand, it would be totally misleading to attempt any direct equation between the amount of the levy and the resultant amount of the profits.

In the first place, your Company’s revenue from advertising is substantially higher than it has been at any time in its history: this is due to the exceptional performance of the ATV Sales department. Secondly, internal economies affecting every phase of the ATV operation except programme production have already shown good results. Thirdly, the benefits of diversification are apparent in the form of additional revenue coming from sources which are not subject to the television levy.

EXPANSION

ATV’s policy has been one of planned expansion in those fields in which your Directors and their Management have the widest background of experience and therefore the greatest contribution to make for the future. It was in line with that policy that your Company made its largest and most important single investment by acquiring the whole of the share capital of the Stoll Theatres Corporation Ltd , and of Moss Empires Ltd.

In London, the Stoll Theatres Corporation controls — either freehold or leasehold — the following theatres Coliseum (leased to Cinerama Ltd); Palladium; Victoria Palace; Hippodrome (leased to “Talk of the Town”); Apollo; Her Majesty’s; Globe; Queen’s; Lyric; Phoenix; and Theatre Royal, Drury Lane. And in the provinces: Birmingham Hippodrome; Bristol Hippodrome; Brighton Hippodrome; Liverpool Empire; Manchester Palace; Manchester Hippodrome (site awaiting development); Morecambe Winter Gardens; Nottingham Empire (closed); Nottingham Theatre Royal; and Stoll Picture Theatre, Newcastle-upon-Tyne. Considerable as these interests are, they do not in any sense constitute a monopoly of the live theatre, either in London or in the provinces. Nevertheless they do provide a wide and substantial bridge between Television and the Theatre, and I am fully satisfied that this is to the advantage of both.

Still pursuing our line of planned expansion within the entertainment industry, in October of last year your Company purchased a controlling interest in M Berman Ltd., one of Britain’s leading firms of film and theatrical costumiers.

ATV AWARDS

Throughout the country the programmes produced by Independent Television have been preferred to those produced by the BBC in the ratio of 64% to 36%, and the programmes of ATV have greatly contributed to this success. Indeed, never before have so many distinctions for programmes been earned in any one year by the artists, personalities, writers and producers connected with a single Company.

The Guild of Television Producers and Directors made four ATV awards; The Screen Writers Guild made four ATV awards; The Variety Club of Great Britain made three ATV awards; and The Television Society two ATV awards. The awards constitute the acceptance of the outstanding position of Mr. Bernard Braden as the ITV personality of the year, and of “The Plane Makers” as the outstanding dramatic series of the year.

AUDIENCE

The Authority’s transmitter in the London area, where ATV is responsible for the week-end operation, reaches a potential audience of 13.8 million. In the Midlands, where ATV is responsible for the week-day operation, the audience has — as a result of the opening on 30th April, 1965, of the Authority’s Membury relay transmitter — now risen from a potential audience of 8.7 million to one of 9.2 million. This increase in audience potential will in due course be reflected in the revenue-earning potential of the Midand operation.

THE MIDLANDS

During the year we have entirely reshaped the pattern of our regional programmes in the Midlands. At a regular time throughout the week-days, our viewers now see a daily Midlands news and news magazine programme (“ATV Today”). ATV Midlands moreover has established the first successful five-day-a-week serial in British television. This programme, “Crossroads”, originating in the Alpha Studios in Birmingham, has now spread across almost the whole national network, and regularly appears in the regional Top Ten ratings. A national critic recently went so far as to say: “‘Crossroads’ is the biggest television success of 1965”.

COMMONWEALTH

In the past I have indicated that our investment in television companies in Canada has proved disappointing because of the heavy initial losses which these companies incurred. I am now, for the first time, able to report that the companies are soundly profit-making and that the value of ATV’s Canadian holdings has correspondingly increased.

ATV (Distributors) Pty. Ltd., is in the happy position of having been able to arrange sales in Australia of all the major ATV series and programmes which they have been asked to handle.

EDUCATION

ATV has continued to produce three fully networked programmes for schools. These have been well received throughout the entire country In the Midlands, where ATV maintains its own Education Officer, the number of schools in which there are provisions for regular viewing has increased during the year from 1,130 to 1,480.

Outstanding in the field of adult education was the series devised by Mr. Harold Wiltshire, Director of Adult Education at Nottingham, and produced by ATV in co-operation with that University. For the first time in the history of adult education on television in this country, the series (on basic economics) offered viewers the opportunity to enrol for a correspondence course based on the programmes and to have personal contact with tutors. Over 1,600 viewers enrolled, and a further course on a national basis is now being planned.

PYE RECORDS

Pye Records, which is 50% owned by ATV, has enjoyed a year of overall success and of individual successes.

On no fewer than five occasions, records under the Pye label reached the Number One position in the British Top Ten listings. Moreover, during this period British pop discs in general, including those of Pye Records, achieved a new fashionable status in the American market. No one would ever presume to predict how long any trend will continue in the pop record field particularly in the U.S.A. but, as a result of the sudden British boom — described by some critics as a “cult” — the dollar earnings of Pye Records more than doubled. Elsewhere in the world, where the trends are usually steadier, overseas sales of Pye Records have shown on increase of more than 50%.

BOWLING

Ambassador Bowling profitably operated 10 Tenpin Bowling Alleys with a total of 273 bowling lories. Three new Centres were opened during the course of the year — in Hounslow, Wolverhampton, Edgware.

Approximately 250,000 people visit our Centres each week. Tenpin Bowling is a sport which covers all age groups but, it should be noted, by far the greatest numbers fall between the ages of 16 and 26.

“TV WORLD”

The new weekly Midlands programme journal, “TV World,” published by Odhams Press Ltd. and jointly owned by ATV which provides the week-day programmes in the Midlands and by ABC Television Ltd. which provides the Midlands week-end programmes, was launched on 26th September, 1964. Its success was immediate. The circulation has grown consistently and now stands close to the 700,000 mark.

MUZAK

Though in the post the growth of this service of background music for offices, factories and public areas has proved slower than anticipated, the position has appreciably improved during the past year. The total value of contracts secured stands at a figure in excess of £1,000,000 [£16.1m], and is now growing rapidly as the benefits of the service become more widely appreciated.

MANAGEMENT AND STAFF

It would have been impossible for me to write in such confident terms of ATV’s overall buoyancy and prospects for the future if it were not for the vigorous, zealous and able leadership given to the Company by the Managing Director, Mr. Lew Grade. I also send my most sincere thanks and those of my colleagues on the Board to all the Staff throughout the Group for their loyal and hard work.

The post ATV financial results: 1965 appeared first on THIS IS ATV NETWORK from Transdiffusion.

REASONS FOR DECLINE IN PROFITS

LEVY ON TURNOVER A DISTORTION OF TAXATION PRINCIPLE

GOOD NEWS REGARDING SECOND INDEPENDENT CHANNEL

SIR ROBERT RENWICK ON EFFECT OF NEW AGREEMENTS

The 8th annual general meeting of Associated Television Limited will be held on 26th August, 1963, at 12 noon at ATV House, Great Cumberland Place. London W.1

The following is the statement of the chairman. Sir Robert Renwick, Bt., B.E. circulated with the report and accounts for eleven months ended 31st March, 1963:-

Your Directors decided that it was in the interest of the Company to change its year-end date from 30th April to 31st March and the Accounts now before you are, therefore, for a period of eleven months to 31st March, 1963.

You will see from the Consolidated Profit and Loss Account that the profit of the Group before taxation is £3,405,714 [£59.1m in today’s money allowing for inflation – Ed] for the eleven months as compared with £5,038,204 [£87.5m] for the previous twelve months. This profit is after charging all expenses including depreciation. Taxation based on the profit for the period amounts to £1,556,005 [£27m] and, after making allowance for this and for the interests of outside shareholders, there is left a profit of £1,860,135 [£32.3m] attributable to ATV

The amount retained in subsidiary companies is £249,706 [£4.3m] leaving £1,610,429 [£28m]. Arising from the change in the Parent Company’s year-end date, certain provisions for taxation, made in previous years, amounting £1,546,000 [£26.8m] are no longer required and, together with the unappropriated balance brought forward from last year of £2,424,909 [£42m], make available for appropriation now an amount of £5,581,338 [£96.9m].

An interim dividend of 20% has already been paid and your Directors now recommend a final dividend of 21.25% making a total of 41.25% for the eleven months. This is equivalent to 45% for the full year as against 60% paid in respect of the year to 30th April, 1962. If this recommendation is approved and after transferring a further £500,000 [£8.7m] to Investment Reserve there will be left a balance of £3,906,486 [£67.8m] in the Accounts of the Parent Company.

Balance Sheet Items

Turning to the Consolidated Balance Sheet it will be noted that the Investment Reserve has been used to offset the Goodwill arising on consolidation. Current Assets have increased during the period by £518,077 [£9m] to £8,558,556 [£149m] whereas Current Liabilities have decreased by £816,170 [£14.2m] to £7,440,500 [£129.2m]. It will be noted, however, that Advances from Bankers have increased by £1,781,020 [£30.9m] to £3,018,618 [£52.4m]; this is in the main due to increased investment in the Group’s Fixed and Current Assets and the payment of an exceptionally heavy taxation liability in respect of the financial year 1960/61.

In deciding to change the year-end date from 30th April to 31st March, your Board recognised that this would inevitably mean the exclusion of the profit deriving from one of the more remunerative months in the calendar. Had the trading results for April been included, the profit figures would have been substantially higher.

A decline in profits would nevertheless have been revealed. This decline is due to a variety of causes. In the first place, there has been a drop in revenue from advertising of approximately 5%. Secondly, certain of the subsidiary companies have, as anticipated, made losses in the early stages of their development. Thirdly, the Company was feeling the full effects of the new agreements with Equity and the Musicians’ Union and, to a lesser extent, of a new agreement with the Variety Artistes’ Federation. Some indication of the increases which the Company had to meet in programme expenditure may be gauged by citing a few examples. The settlement with Equity on which work was resumed on 6th April, 1962, provided a new minimum fee for an actor on a networked programme of 36 guineas [£37.80 in decimal, £656 with inflation]; the old fee was 10 guineas [£10.50/£182]. The settlement with the Variety Artistes Federation reached on 17th November, 1961, provided for a new minimum fee of £30 [£521] for a networked programme as against 10 guineas: the settlement with the Musicians’ Union reached on 10th April, 1962, gave a minimum fee of £18 [£312] for a networked programme as against £6 [£104] under the previous arrangement.

Threat of the Television Bill

Historically, the year 1962/63 will be remembered by your Board as one of many and major preoccupations, chiefly concerned with the future of Independent Television in general and with the future of this Company in particular.

In June, 1962, the Report of the Pilkington Committee, which was appointed in July, 1960, was at last published. This Report, which proved to be hostile towards Independent Television as a whole, recommended the total abolition of the system as we know it to-day and the substitution for it of a system whereby the Independent Television Authority was to plan the programmes, arrange for their networking and for the selling of the advertising time – leaving Companies, such at ATV, to play the role merely of programme suppliers to a Government Authority.

It is to the credit of the Government that the main recommendations of the Pilkington Report were rejected. Nevertheless, when, on 20th December, 1962, the Postmaster-General presented his Television Bill it was immediately apparent that the atmosphere Pilkington was still pervasive. For, although it was recommended that the Programme Companies should continue as full operators of the television service in their various areas, it was laid down in the Bill that the Authority should be able to specify not only which programmes should be networked but at what price the originator should be required to supply them.

Nor was this all. The financial provisions in the Bill included a clause empowering the Postmaster-General to impose additional charges on the Programme Companies by way of a tax on profits deriving not only from the operation of a television licence but from the operation of any subsidiary company or companies.

It was because your Board felt that such a discriminatory tax was most improper that we took action. First, I wrote to shareholders warning them of the gravity of the situation; then, on behalf of your Board, I issued a number of statements to the Press; finally, I sought, and obtained, an interview with the Postmaster-General and corresponded with him. Throughout I made it my business to see that Members on both sides of Parliament were informed of the true facts of the situation

I mention these matters because in certain quarters much play has been made of a Television Lobby and the activities of a so-called Television “pressure group”. Those who have been most vociferous in expressing their disapproval have completely ignored the fact that within Independent Television there are nearly as many points of view as there are Companies, and that it was only in respect of certain limited objectives that there was any measure of agreement at all. This state of affairs seems to me healthy. democratic and in the true spirit of free enterprise.

So far as ATV is concerned I would regard it as a total dereliction of my duty as Chairman if, faced by a situation which could obviously be grievously harmful to your Company, I had not exerted every legitimate effort to induce the Government to revise its thinking.

The Board, and shareholders in general, have every reason to be grateful to your Deputy Chairman, Mr. Norman Collins, for the unsparing and untiring work which he devoted to securing improvement in the Television Bill.

An Ill-conceived Levy

Not that our efforts were entirely successful. Quite the contrary, in fact. For on 25th April, 1963, the Postmaster General suddenly withdrew his proposed omnibus tax on profits and substituted for it an arbitrary – and I think thoroughly ill-conceived – levy on turnover. In my view the levy is entirely mis-applied. The purpose of a turnover tax, as it is usually called. is to extract money for the Exchequer at the various stages where profit has accrued in a developing economic process – say between the suppliers of raw materials, the manufacturers, the wholesalers and the retailers. To attempt to apply it to an industry such as Independent Television which has only one operation – the earning money from advertisements to enable it to put out a free service to the public – is clearly a distortion of this taxation principle.

In order to substantiate our case financial statements were made freely available to the Postmaster General and to his colleagues. These statements clearly indicated one thing, viz., that a levy on turnover would affect some Companies far worse than others – your own Company, I regret to say, worst of all.

Why? For the simple and inescapable reason that ATV with its dual and divided seven-day operation in London and the Midlands has two lots of overheads, two lots of studios, two lots of offices, two lots of programme costs and so forth. The revenue – now to be subject to the levy – earned from this dual operation is no larger, and may indeed be smaller, than the revenue earned by a Company operating a five-day service in one area only with one lot of overheads, one lot of studios, one lot of offices, one lot of programme costs and so forth.

The Postmaster General has now said that he will look to the Authority to iron out these inequalities by imposing a system of differential rentals as between the various Companies. It may well prove to be the case, however, that the inequalities are so great that it is only by some measure of re-allocation of days or areas that the Authority will be able to seek to redress the balance.

Competition Achieved

Nevertheless, if your Board has failed in some of its efforts, there is cause for congratulation on one matter of major importance. On 27th June the Postmaster General announced in the House that by 1966, when there should be not fewer than 1½ million television sets in London capable of receiving a new 625-line service in UHF, he would authorise a second Independent Channel in the main areas. That is good news indeed and does much to remove the sourness of a singularly long and frustrating series of negotiations. It represents the culmination of a campaign that your Company alone has fought from the very beginning of Independent Television. Over the years we have repeated in Annual Report after Annual Report that we have never believed that a single Independent Television Service could comply with the basic requirements of the 1954 Television Act that “there is adequate competition to supply programmes between a number of programme contractors independent of each other both as to finance and also to control.” Within a single service the Companies inevitably tend to be complementary rather than competitive. Your own Board, moreover, has always felt that the advertisers. on whom the revenue to support Independent Television depends, should enjoy the freedom of buying in a competitive rather than a monopolistic market.

As the pioneer Company in advocating competition, ATV looks to play its full part over the years in the expanding field of Independent Television.

In the meantime. and for the immediate future. we have concentrated our efforts on making the most effective contribution that can be made in both the areas in which, under the terms of the licence, we are required to provide programmes. The success of London programming at the week-ends will be familiar to all the viewers who live within range of the Croydon transmitter.

4,000,000 Audience in the Midlands

Not that we regard our Midland audience as in any way less important. For those who do not live within the area served by the Lichfield transmitter I should report that for the first time our audiences have topped the four million mark. Many notable figures from all political parties and from all walks of life have appeared in programmes. These have included the Prime Minister, both when he addressed the Birmingham Chamber of Commerce early this year and also when he made his important announcement on leadership only last month at Wolverhampton. In such regional programmes as “Midland Montage”, “Midland Profile”, and “Look Around”. Mr. Iain Macleod and Mr Ernest Marples have appeared; and Miss Jenny Lee and Mr Roy Jenkins have spoken for Labour.

ATV is particularly proud of being the first Company to introduce a regular mid-day programme, and Noele Gordon’s “Lunch Box”, now in its seventh year, is already running into its 1,600th edition. Scarcely less important is the children’s programme conducted by Jean Morton, “The Tingha and Tucker Club”, which now has an estimated membership of half a million children and is firmly established as the most popular children’s programme in Midland television.

Company’s Multiple Interests

From the earliest days of the Company your Board decided on a policy of diversification. In the result our production subsidiary, Incorporated Television Company Limited, has traded widely throughout the Eastern Hemisphere. ITC Ltd. deals with 42 countries in the Eastern Hemisphere, 21 of them in Europe, nine in the Middle East and North Africa, seven in Australasia and the Far East, and five Commonwealth countries in Africa. ITC Ltd. also deals with the three of the Islands in the British Caribbean which operate a television service.

During the twelve months ended 31st March, 1963, over 5,600 hours were sold in these territories, approximately 4,300 hours being sales of film series, the balance telerecordings and documentary-type programmes.

Sales in these areas in this period amounted to £336,810 [£5.9m], and this is a steadily expanding market.

In the U.S.A., Independent Television Corporation has again shown progress in distributing our productions in the Western Hemisphere. Though trading conditions have been difficult within the USA. this Company since its inception has brought not less than $12 million [$119.3m] into this country.

“Fireball XL5”, beginning in the autumn, has been taken for showing on one of the principal American networks, while both “The Saint” and “Broadway Goes Latin” are being sold for syndication.

In partnership with the National Broadcasting Corporation of America and Herbert Brodkin, we are producing twenty-six one-hour episodes of “Espionage” in England. Our Group has world-wide distribution rights in this series outside the U.S.A. The series is to be shown on the N.B.C. Network as well as by our Company in the U.K. and has already been sold for transmission in Australia, Canada and Japan. The production on film of any television series necessitates considerable expenditure which can be recovered only over a period of years and provided a satisfactory sale can be secured in the U.S.A. Not the least of the reasons for deprecating the new levy on turnover is the fact that less money will be available for the production of film series which are vitally important both for home use and for export.

I am happy to say that Australia has emerged from its recession to which I referred last year and the results from our group investments in Australia have once again produced better figures. Our investment in Canada is also making satisfactory progress.

The build-up of our background music service, Muzak, is continuing slowly but steadily. It will be appreciated, however, that inevitably heavy investment in the development of this type of service will take some time before it can be fully recovered and the Company be made profit-making.

In the last eighteen months we have taken the first steps to set up and operate a chain of tenpin bowling centres. Our wholly owned subsidiary, Ambassador Bowling Limited, now has two centres in operation and a further three or four will be in operation in the course of the next twelve months. It is already apparent that tenpin bowling is a sport which has found considerable favour in this country and I am sure that this new venture of ours will prove remunerative over the years.

Pye Records Limited, in which your Company has a 50% holding, continues to make excellent progress and with the advent of its up-to-date recording studios will, I am confident, continue to expand.

As to our large investment in British Relay Wireless and Television, as shareholders will appreciate from the figures recently produced by that Company, it is progressing well.

Top Management

During the year under review,. your Company has seen major changes in top management. Mr. Val Parnell, who has acted as your Managing Director from the inception of the Company, retired at his own request. The services which he rendered during the formative years of the Company cannot be over-valued and we are delighted that he has agreed to remain on the Board and to act in a general advisory capacity, in addition to remaining responsible for one of the most popular programmes on Independent Television, “Val Parnell’s Sunday Night at the London Palladium”. Your Board was fortunate in having his successor so close at hand. Mr. Lew Grade, who over the years has acted as Mr. Parnell’s deputy, was immediately appointed to the top post. Mr. Grade’s appointment has proved to be universally popular throughout the industry and has been widely acclaimed by the Press. The Board regards itself as equally fortunate in obtaining the services as deputy to Mr. Grade of Mr. Edward J. Roth who, prior to joining your Company, was Director-General of Radio Eireann.

In the general context of Independent broadcasting as a whole I am happy that the date of this Annual Report makes it possible for me to be the first to express the feelings of the industry as a whole in welcoming the Rt. Hon. Dr. Charles Hill, now Lord Hill of Luton, as the new Chairman of the Authority. In doing so most warmly I will take this opportunity of thanking Sir John Carmichael who has acted Chairman since the retirement last November of Sir Ivone Kirkpatrick. Independent Television has never felt that it has had a wiser counsellor than Sir John. Once again I would like to express the appreciation of ATV to the Director-General of the ITA, Sir Robert Fraser, and to his colleagues within the Authority.

And now a word of tribute to our staff in London, Birmingham and elsewhere the world over. Despite the cloud of political uncertainties which has hung over the industry every member of ATV’s staff has worked most loyally throughout the year and the Board wishes to express its keen appreciation.

The post ATV financial results: 1963 appeared first on THIS IS ATV NETWORK from Transdiffusion.

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.

The post ATV financial results: 1960 appeared first on THIS IS ATV NETWORK from Transdiffusion.

YEAR OF CONTINUED PROGRESS AND EXPANSION

OVER TWENTY-FOUR MILLION VIEWERS ON I.T.V.

SIGNIFICANT WIDENING OF PROGRAMME RANGE

MR. PRINCE LITTLER’S REVIEW OF ACTIVITIES

The fourth annual general meeting of Associated Television Limited will be held at the Connaught Rooms, Great Queen Street, London, W.C.2., on Thursday, September 3rd, 1959, at 3 p.m.

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 shown continued progress and expansion both for your Company and for Independent Television as a whole. New programme companies have been appointed for southern and north-eastern England, and the number of viewers able to receive Independent Television has risen to a total of more than 24 millions. Apart from the natural growth of the television audience through the purchase of new receivers, an entirely new Independent Television audience will arise from the opening of three new transmitters which will be on the air by the end of the year, thereby bringing Independent Television to an additional four million viewers in East Anglia. Northern Ireland and south-eastern England. All Independent Television companies, the pioneer companies as well as the newcomers, benefit from this expansion because network arrangements between the various companies enable basic production costs to be spread.

Planned Expenditure by Advertisers

With the nation-wide growth of Independent Television, advertisers are now able to be more selective in their buying of time, and the industry is entering into a new phase of overall planned expenditure on the part of the advertisers and their agencies. This is a thoroughly healthy development and it is supported by increased budgets which amply demonstrate the faith that advertisers have in the television medium.

While advertising revenue increased in the period under review as against the previous year, it must be recognized that saturation point may soon be reached. On the other hand programme costs continue to rise, both as a result of our confirmed policy of improving programme standards and as a result of wage increases arising from negotiations with the various trade unions concerned in the industry. Continuous watch is kept on expenditure and, although various substantial economies have been effected, the present extremely high level of profitability may become increasingly difficult to maintain.

Capital Structure

In the past 12 months there have been considerable changes in the capital structure of your Company. On September 30, 1958, the remaining £207,120 [£3.9m in today’s money allowing for inflation – Ed] of the 6 per cent. Convertible Unsecured Loan stock, 1960/63, was converted into “A” Ordinary shares of £1 each, but with a reduced right to dividends in respect of the year ended April 30, 1959, and the Company’s 6 per cent. Unsecured Loan stock, 1960/63, was redeemed at 102½ per cent.

On December 11, 1958, the authorized capital of the Company was increased to £5,000,000 [£94m] by the creation of 2,980,000 additional “A” Ordinary shares of £1 each, and 305,000 new “A” Ordinary shares of £1 each were issued credited as fully paid by way of capitalization of reserves and distributed to the holders of the Deferred shares and the 400,000 Deferred shares of 1s. each were converted into 20,000 “A” Ordinary shares of £1 each. On the same date each of the Company’s 4,850,000 “A” Ordinary shares of £1 was sub-divided into four “A” Ordinary shares of 5s. each.

On March 19, 1959, 7,871,520 fully paid “A” Ordinary shares of 5s. each numbered 1 to 7,871,520 inclusive were converted into stock transferable in amounts and multiples of 5s. The 828,480 “A” Ordinary shares of 5s. each, arising from the conversion of the Loan stock on September 30, 1958, will be converted into stock after the payment of the final dividend in respect of file year ended

April 30, 1959, at which time these shares will rank pari passu with the remaining “A” Ordinary stock.

Group Profit and Dividend

The Group profit before taxation, for the year ended April 30, 1959, amounted to £5,316,493 [£100m]. Taxation takes £2,715,076 [£51.2m] and there remains a Group profit of £2,601,417 [£49m], of which £369 [£7,000] is attributable to outside shareholders of a subsidiary company, leaving a profit attributable to the parent company of £2,601,048. Of this amount £38,373 [£724,000] was retained by the subsidiary companies and there remains £2,562,675 [£48.3m] to be dealt with in the accounts of the parent company. To this must be added £333,040 [£6.3m], the balance brought forward from the previous year, and £153,123 [£2.9m] in respect of taxation provisions no longer required due to the reduction in the rate of income tax, producing a balance of £3,048,838 [£57.5m] available for appropriation.

Your directors propose to recommend a final dividend of 12s. per share on the Ordinary shares of £1 each and 3s. per share on the “A” Ordinary stock units of 5s. each. “A” Ordinary shares numbered 7,871,521 to 8,700.000 inclusive rank for dividend of ⁷⁄₁₂ths of that payable on the “A” Ordinary stock. The interim dividend already paid and the proposed final dividend absorb £1,337,623 [£25.2m], leaving £1,711,215 [£32.3m] to be carried forward in the accounts of the parent company.

The accounts include provision for the distribution of £213,897 [£4m] for the staff profit-sharing scheme.

The balance of the mortgage on National Studios was repaid in September, 1958.

Proposed Capitalization of Reserves

On February 5, 1959, your Company applied to the London Stock Exchange for a quotation of its “A” Ordinary share capital which was granted. In the statement submitted with the application your directors indicated their intention of recommending in December, 1959, the capitalization of £2,325,000 [£43.9m] of reserves by the issue of 9,300,000 “A” Ordinary shares of 5s. each credited as fully paid to the holders of the present issued share capital in the proportions of four new shares for each existing Ordinary share of £1 each and for every four existing “A” Ordinary stock units of 5s. each. It is still their intention to make this recommendation.

Last year you were notified of the acquisition at par by your Company of £500,000 [£9.4m] 7 per cent. Convertible Unsecured Loan stock, 1967/68, in British Relay Wireless and Television Limited under the terms of issue of which the Company has options, exercisable on September 30, 1961, or September 30, 1962, to convert the whole or part of the stock into fully paid Ordinary shares of 5s. at the rate of 134 shares for each £100 stock converted. In February, 1959, British Relay Wireless and Television Limited made a rights issue and your Company subscribed for 268,000 new Ordinary shares of 5s. at 20s. which was its entitlement under the terms of the Loan Stock Trust Deed. The operations of British Relay Wireless and Television Limited continue to expand and your board is confident that this investment will prove profitable.

Recent and Proposed Acquisitions

In September, 1958, your Company received the consent of the Australian Federal Government to the acquisition of file commercial radio and television interests of the Daily Mirror Group in Australia. In March, 1959, the wholly owned Australian holding company, formed by your Company to control its Australian interests, subscribed for 75,000 shares of £A.1 each in the company operating the new Brisbane commercial television station.

It is anticipated that this station will go on the air in August, 1959. The Sydney commercial television station in which your company has a 9.36 per cent interest, is now operating on increasingly profitable terms.

As I reported in my statement last year, your board was then negotiating for file acquisition of a prominent United Kingdom production company engaged in the production of films for television. These negotiations were successfully concluded last autumn when the share capital of Incorporated Television Programme Company Limited, which has since changed its name to ITC—Incorporated Television Company Limited, was acquired. This company owns a 50 per cent interest in the voting equity of one of the three most important television film distribution companies in the United States. Preparatory work for the production of television film series is in hand and will be carried out in your Company’s studios in the United Kingdom and also in its studios in Australia.

Agreement with Pye Records

As indicated in the statement accompanying the application for quotation to the London Stock Exchange, your Company has completed an agreement to buy for a nominal consideration, half of the issued share capital of Pye Records Limited, a gramophone record manufacturing company, and has undertaken to advance to Pye Records Limited up to £300,000 [£5.7m] by way of loan. Although it is anticipated that certain initial losses will be incurred, your directors are confident that this will prove a profitable venture.

The Company has also concluded its negotiations with Muzak Corporation. Subsidiary companies have now been formed to operate the concession acquired on a royalty basis in the United Kingdom and Ireland for the distribution of background music on the lines developed by Muzak Corporation in North America.

Preparatory development work is now in hand and a sales force is being built up to develop this franchise commencing in August of this year. An encouraging number of inquiries for the use of this service has been received and it is hoped that there will be a steady growth in demand once the operation is established.

New Head Office and Studios

The first stage of the transfer of the Company’s head office to its new office building at ATV House, 17, Great Cumberland Place, W.1, was.completed on June 29, 1959, and it is anticipated that the transfer of the second stage will be completed in the spring of 1960. These offices are among the most modem and efficiently planned in London and your Company has been able to set an example in providing such agreeable working conditions for its staff. The amenities include a Muzak service throughout the building.

Plans are currently under review for the Company’s permanent studios. From the outset the staff has been working under considerable difficulties in temporary accommodation converted to television production purposes and it is remarkable that programmes of such excellence should have been produced in the existing studios. The consolidation of the London production facilities has been consistently postponed until the Company’s financial position warranted the considerable expenditure involved. Plans have already been approved for the rebuilding of the Midlands centre, Alpha Studios, which are shared and jointly financed by ABC Television and ourselves.

Distinguished Artists and Public Figures

The range of ATV’s programming has significantly widened. During the past year not only have such distinguished artists as Sir Laurence Olivier, Sir John Gielgud and, more recently. Sir Michael Redgrave and Miss Leslie Caron, made their world debuts in major TV drama, but a succession of public figures, politicians, philosophers, scientists, educationalists, and the clergy of the main denominations, have all appeared in ATV’s various topical series. Thus, in “Right to Reply,” the speakers have included the late John Foster Dulles, the Right Hon. Selwyn Lloyd, Secretary for Foreign Affairs, Lord Russell, General Norstad, M. Soustelle and Mr. Aneurin Bevan. In “Free Speech,” Lord Boothby, Mr. Michael Foot, Mr. A. J. P. Taylor, Mr. W. J. Brown, to name four of the regular debaters, have kept the conduct of current controversy not merely balanced but also bold. Sir Kenneth Clark’s series “Is Art Necessary?” has now reached its eleventh programme and, in the field of documentary studies, ATV’s treatment of such subjects as Polio and World Population have achieved audiences in excess of five and a half million. The Religious programmes, moreover, have grown in audience from an average of under three million in 1958 to an average of nearly four and a half million in 1959. Among the many outstanding religious figures who have taken part in the “About Religion” series are the Reverend Father Trevor Huddleston, the Most Reverend Archbishop of Liverpool, Dr. John C. Heenan, and, more recently. Dr. Billy Graham, the American evangelist.

Popular science has been most successfully presented by Mr. Gerald Leach, a 26-year-old Cambridge scientist, who, in the series “It Can Happen Tomorrow” now addresses the largest home schoolroom audience of children and adults in British television.

A Notable Outside Broadcast

Notable among the many outside broadcasts was the first coverage in Independent Television of polo, with H.R.H. the Duke of Edinburgh playing at Windsor Great Park. Not less notable in another context is “Emergency – Ward 10” which has now entered its third year of twice-weekly series, with more than 10 million viewers for each episode.

Undoubtedly, however, the outstanding ATV record belongs to “Sunday Night at the London Palladium,” which on March 29, 1959, celebrated its 139th performance, having appeared no less than 130 times among the Top Ten most popular programmes in this country. “Sunday Night at the London Palladium” has brought into the homes of nearly 12 million viewers the best in light entertainment and, together with “Saturday Spectacular” has presented such internationally famous stars as Arthur Askey, Max Bygraves, Margot Fonteyn, Bruce Forsyth, Benny Hill, Bob Hope, Sally Ann Howes, Jewell and Warriss, Dave King, Liberace, Johnny Ray, Harry Secombe, Jo Stafford, Sophie Tucker and Norman Wisdom.

Recognizing the importance of maintaining the highest standards in children’s programmes your Company, in association with ABC Television, has appointed Miss Mary Field as Childrens Adviser. The work that Miss Field has already done as chairman of the Children’s Film Foundation earned her unique authority in this field.

The Midlands

Your Company is unique among the main Programme Companies in having responsibility not only for week-end broadcasting in the Metropolis but also for providing the week-day Independent Television for some six million inhabitants in the Midlands. In this important Midlands operation not only do we broadcast regular programmes for the farming community but, in the series “Where Are You Going?’ the Midland teenagers are helped by Midland educationalists and by the large industrial organizations in arriving at the right choice of career. The Midlands programmes include the popular “Lunch Box” programme of Noele Gordon’s and many programmes not seen on the London screens. The latter include the daily “Midlands News”; “Midland Montage,” the weekly magazine-type programme which presents news, views and comment about the Midland scene; daily religious programmes; “Paper Talk,” the regular discussion programme which had the longest run of any weekly television senes in Britain; and “Cover Girl,” a new type of teenage show produced in ATV’s Midland studios.

Your Company has continued with its policy of publishing in pamphlet and booklet form various of its outstanding television programmes. Particularly notable is the fact that by adopting new techniques we were able to place the text of the broadcasts of Mr. Dulles. Mr. Selwyn Lloyd, General Norstad and M. Soustelle in the hands of Members of the House of Lords, M.P.s and newspaper editors on the morning following the broadcast.

Your Company during the past year contributed £26,000 [£491,000] out of the total of £100,000 [£1.9m] from the four main companies by way of grants to the arts and sciences. Sir Ivone Kirkpatrick, chairman of the Independent Television Authority, said of these grants: “The money will rescue many a valuable enterprise from extinction and will help others to improve their standards.”

Competition Welcomed

In my last statement I referred to the fact that this Company would welcome competition by another Independent Company seeking to attract viewers on the same days of the week and in the same areas. I reaffirm this view. Indeed, I feel that the competitive requirements of the Act call for such a second service. Moreover, your Company feels that the present restrictions on broadcasting hours are unrealistic and should be reviewed. The Company is at the moment precluded, solely by lack of opportunity, from scheduling many new programmes which it would like to be able to present to the British public. Furthermore, your Company has always been in the forefront of those which have supported the view that British television should progressively adopt the 625-line Continental standard and should not be permanently shackled to the outmoded standard of 405-lines to which this country reverted after the close of World War II.

The problems confronting any Programme Company are many and various and, once again, I should express our sincere appreciation for the invaluable guidance and advice always made readily available to us by Sir Ivone Kirkpatrick himself and by his two chief officers, the Director-General, Sir Robert Fraser, and the Deputy Director-General, Mr. Bernard Sendall.

The thanks of this Company, as of the other Independent Television Companies, are due also to Mr. Paul Adorian, managing director of Associated-Rediffusion, who for the past year has acted as chairman of the Independent Television Companies Association, an office in which he has from July 1 been succeeded by Mr. Norman Collins, deputy chairman of your own Company.

I have to report the resignation as executive director of Mr. Richard L. Meyer, whose wide experience of sound broadcasting matters proved so valuable to the Company during its initial stages. Mr. Meyer has been succeeded as an executive director by Mr. J. A. L. Drummond, whose City background and knowledge of financial matters has already proved of the greatest possible benefit to the board.

Tribute to Management

It is customary for the chairman to pay a tribute to the services rendered by the management. This I am most happy to do. I would like to thank all the directors, not least the non-executive directors, who have so generously given of their time and services.

No tribute to management would, however, be complete without a specific reference to the unique services rendered by your Company’s managing director, Mr. Val Parnell, thanks to whom the Company has not only become highly profitable but has laid sound foundations for the future. Moreover, Mr. Parnell, no less than I, would, I am sure, wish to include a special mention of your deputy managing director. Mr. Lew Grade, on whose shoulders fall so much of the detail of the day to day running of the business.

In conclusion, as regards the staff of your own Company, it will be apparent that such excellent results could not have been achieved without arduous and unflagging efforts on the part of all concerned. I therefore extend to them our heartiest thanks, and I am glad that the staff profit-sharing scheme enables our appreciation to take a tangible form.

The post ATV financial results: 1959 appeared first on THIS IS ATV NETWORK from Transdiffusion.

One of the most outstanding recent successes in television programme-making is ATV’s The Muppet Show which delighted viewers for the first time in the autumn of 1976. Kermit and company took over the television screens at about 5p.m. on Sunday afternoon and the team of puppet characters succeeded in waking up dad from his afternoon nap and keeping mum from making the tea in order to join the children for 30 minutes of the zaniest, wittiest, most endearing comedy show in years.

Within two-and-a-half months the time slot which had been attracting six million viewers had an audience of over twelve million. Now into its second series The Muppet Show has become a cult and looks like remaining an integral part of our viewing habits for some time to come.

But how did it all begin? The Muppets – their name derived from the combination of marionette and puppet – were created by Jim Henson, who featured Kermit and some other Muppet characters in the children’s educational programme Sesame Street. Lord Grade of ATV, who showed a great interest in the series, invited some of the Muppets to appear in two or three major television specials being made at ATV’s Borehamwood studios. These programmes, which included Julie on Sesame Street (Julie Andrews), Herb Alpert and the T J B and Julie – My Favourite Things, were so effective that Lord Grade invited Jim Henson to make a series of shows designed for family viewing.

Jim Henson was delighted; for several years he had been trying to get the American television networks to back him for a similar idea but nobody in the USA was willing to make the show. Lord Grade then did the inevitable. He sold the show back to America where it has become as big a hit as in Britain.

But without the creative genius of Jim Henson and his team nothing would have been possible. Jim Henson, aged 41, was born in Mississippi and made his first Muppet (Kermit) 22 years ago. Needless to say there have been several Kermits rebuilt since, plus over 300 other characters created over the years. Jim has an extremely talented team around him which consists of puppet builders and designers, writers, and of course the puppeteers. Where Jim goes, they go! Therefore the entire unit moved to Britain and set up its work shop off the main studio at ATV’s Borehamwood studios, and that became ‘home’.

The production team is, of course, British, headed by two directors – Peter Harris, who did the entire first series, and Philip Casson who is an additional director for this second series. Jack Parnell and his Band provides the marvellous Muppet music, and David Chandler, Paul Dean and Bryan Holgate are the designers.

The British crew and Jim Henson’s team in no time developed a very warm working relationship and admiration for each other and rarely has there been such a compatible or happier unit on any production.

The technique of making the show and operating the puppets has created as much interest for viewers and the industry as the show itself. Every set is built at least four feet above floor level and the cameras work at an average height of seven feet. The sets are built to a two-thirds scale suitable to accommodate the human guests as well as the puppet characters which vary in size from eighteen inches [45cm] to two feet [61cm] (giant Muppets can tower fourteen feet [4.25m]).

The puppeteers are all at least six feet tall [1.8m] and very slim. They wear head bands with microphones attached and have a small monitor TV set in front of them. This enables them to synchronise the dialogue with the mouth, eyes and arms, and gauge the puppets’ expressions and movements. The puppeteers operate the puppets by hand, above their heads – an extremely strenuous and shoulder-aching pastime!

The puppeteers are performers. They have to be actors, comedians, singers, voice impersonators and even have a good sense of rhythm or know a little about music. For instance the ‘At the Dance’ sequence and the synchronisation of Animal on the drums and Rowlf at the piano must be perfectly timed. No wonder Jim Henson looks on auditions for new puppeteers as a formidable task. Fortunately, however, his current team of performers: Frank Oz (Fozzie Bear, Miss Piggy, Animal), Jerry Nelson (Floyd, Crazy Harry, Uncle Deadly, Robin), Richard Hunt (Scooter, Mr Statler, Sweetums, Thog), and Dave Goelz (The Great Gonzo, Zoot and various guest characters) have been with him for a few years. Incidentally, Jim’s own main characters are Kermit, Mr Waldorf, Rowlf, Dr Teeth and Mahnamahna.

Part of the attraction of the Muppets is that they all have very individual characters and often display recognisable human frailties and emotions. It is quite common in rehearsal or during a break between camera ‘takes’ for the Muppets to talk and joke with each other, and if the floor manager gives a direction to a puppeteer he is not surprised when it is the Muppet on the end of the puppeteer’s arm that comes back with the response.

The strength of The Muppet Show’s success can be further assessed by awards the show has received during 1977. In January the American Guild of Variety Artistes presented the special Georgie award for the ‘Best Special Attraction – 1976′. In March the British Academy of Film and Television Arts cited the show ‘Best Light Entertainment Programme – 1976’. In April The Broadcasting Press Guild voted the show ‘Best Comedy or Light Entertainment Programme’ for 1976 and in May the show won the most prestigious of all international awards for Light Entertainment, the Golden Rose of Montreux in Switzerland. Also in May, the Pye Colour Television Awards voted Kermit the Frog ‘Most Promising Male Newcomer’.

The series has now been sold to over 100 markets throughout the world and has an audience of hundreds of millions. It is dubbed into five languages: French, German, Spanish, Italian and Portuguese.

This is the story behind The Muppet Show to date, but doubtless more awards, more record successes (the first Muppet LP reached No. 1) will be forthcoming to reflect the quality and popularity of this truly original show.

The post The making of the Muppets appeared first on THIS IS ATV NETWORK from Transdiffusion.

It was, however, Hugh Jenkins, MP, when he was Labour’s Minister for the Arts, who gave the most succinct expression to misgivings about the system which enables men like Lew Grade to consolidate such an empire.

‘I agree Lew Grade is a nice man,’ said Jenkins without much fear of contradiction, ‘but what is dangerous is that such a concentration of power should rest even in the most moral hands. It is a dangerous situation in which a man has such power that the question of whether he’s a nice man or not is not important. Even Lew Grade is not immortal.’

When a government minister expresses his alarm in such strong, unequivocal terms, it is worth while to examine more closely the causes for his concern. Niceness and straight-dealing are not the issue; nor is plutocracy. Something far more difficult to define, yet all the more insidious for that, is at stake. ‘The greater the power, the more dangerous the abuse,’ said the eighteenth-century philosopher Edmund Burke two centuries before such a force as television was ever imaginable. Even the high priest of free enterprise, Benjamin Disraeli, qualified the Victorians’ unswerving belief in personal empire-building by writing: ‘I repeat that all power is a trust – that we are accountable for its exercise – that from the people, and for the people, all springs and all must exist.’

To justify his own position, Lew Grade can point to his ratings. If that is not power from the people and for the people, what is it? He is genuinely perplexed by the sophistication of Mr Jenkins’s arguments, and will maintain with sincerely wounded feelings that the accumulation of money is the last thing he thinks about. ‘Multimillionaire? Baloney!’ he protests, a small, finely boned hand raised in horror so that the gold jewellery winks away up to his cuffs. ‘I have no money. I spend my money. I have perhaps been very generous with my money, but let’s not go into details about that. Making money, having power, that’s just an incidental part. If people let it change their lives, they don’t love their work.’

All this, as we shall see, is the case. He does love his work. He is nice. He does produce popular programmes. He does give the public what they seem to want. He is not interested in amassing wealth for wealth’s sake. He is the benefactor of countless untold good causes. The epitaph he once asked for was: ‘I always kept my word’ (subsequently altered to: ‘I didn’t want to go’!) But go, one way or another, he must. He himself has fixed his retirement at the year 2000. Be that as it may, as Hugh Jenkins points out, even the most moral men are mortal.

However or whenever he goes, he will leave behind that ‘dangerous concentration of power’, and given the vagaries which put it into those sensitive, delicate hands in the first place, who can tell what manner of man will succeed him?

When Lew Grade finally emerged from the fascinating early musical chairs at Association TeleVision, his company’s assets stood at £9,400,000. Within the first ten years of his single-minded stewardship, this tiny, rotund and genial man had husbanded his empire so shrewdly, and with such canny flair, that its assets topped the £35 million mark and its interests spread around the globe. By the time the centre of his all-consuming interest had shifted from television to the making of movie spectaculars and he took the title of president, it is fair to say that he had stamped his personal mark on all branches of the entertainment industry from his vast office in ATV House, Great Cumberland Place, adjacent to London’s Marble Arch; he had become a showman mogul cast in a heroic mould, as Lord Annan was to agree.

By then the chances were that when you turned on your radio, went to the cinema, bought a record or a theatre ticket, relaxed at home in front of the box or merely whistled a tune, this amazing man would own a slice of your consumption. For his £210,000 a year president’s salary, he brought a Sam Goldwyn touch to the television industry. No other man has been so successful in selling what the public wants to buy. There are few who would deny Lew (later Sir Lew and latterly Lord) Grade the status of the real founding genius at ATV. The one man who might have put in a counter-claim was Val Parnell, and Val Parnell is dead.

Grade himself enjoys telling how he first came to be in television. Like most stories concerning him it has a nub of truth and is packaged with a showman’s relish for the quotable anecdote. It started, he says, with the advertisement placed by the ITA inviting interested parties to tender for the original contracts. His version of what followed has all the hallmarks of his own bravura simplicity:

‘Now it was bandied about at the time that you needed £3 million. I said how was I going to get that kind of money? Well, my friend said he had someone who could find £2 million if I could find the rest and a board consisting of people well known enough in entertainment. I said “Okay” and I told my brother Leslie he was in the entertainment industry.

‘At that time we hadn’t got much money. We put in all we had – about £15,000 each. Then I rang Val Parnell and told him: “You’re in the television business” and he put in £10,000 to £15,000. Then I called other friends and we virtually formed the group.’

Among the most influential of those other friends was Prince Littler, chief of the Moss Empires variety chain. It was an impressive showbusiness consortium by any standards. There are people who remember hearing Val Parnell tell a similar story with the calls reversed. Exactly who picked up the phone and called whom is not, however, the real point. It is a good story and it is a revealing story, for it demonstrates lucidly what a modest outlay was needed for these leading showmen to buy their way into the ground floor of a multi-million pound venture. It is also some indication of how much (or little) they judged that new industry to be worth.

For what Grade’s throw-away anecdote disguises is in fact how slow any of them was to pick up the phone. It was certainly not a case of sizing up the potential of the new service, as both Norman Collins and Lord Woolton had done five years before, and rushing in to bag a claim. The bandwagon had been rolling, albeit bumpily, for a long time before Lew Grade jumped aboard. He actually missed the ITA’s advertisement in the newspapers. And even after it had been brought to his attention and the cavalier phone calls had been made, there was no direct route to the handsome blue-carpeted office with its table-tennis sized desk which was to become the seat of all power within ATV. It was a circuitous and quite improbable series of events which finally brought him there.

When the ITA advertisement appeared, Lew Grade (as he then still was) was totally immersed in the business affairs of his vast theatrical agency. It is both his strength and his weakness to be almost obsessively absorbed in his own current project. Part of the project he was then concerned with was a tour of the American singer Jo Stafford, and it was two of Miss Stafford’s entourage who played the most prominent roles in launching him into television. Her manager, Mike Nidorf, over in London from the United States to iron out various details of her contract and her performance schedules, spotted the advertisement and enthusiastically outlined its possibilities into Grade’s receptive ear, one of his most abiding qualities being his willingness to listen to new ideas. It is, indeed, among his proudest boasts that his office door in Great Cumberland Place has always remained open to anyone from tea lady or office boy to top executive if they have an idea which they think might be useful to him.

Lew listened carefully as Nidorf argued how, once it got under way, commercial television would have about as much chance of losing money as a fruit machine in Las Vegas. He was backed in his assessment by a most persuasive lady, Suzanne Warner, who was also prominent in the Jo Stafford menage. Added to her obvious Californian glamour was a spirit of daring enterprise. It was, in fact, Suzanne Warner who ‘had someone who could find £2 million’ to put alongside Lew, Leslie and Val’s £45,000. By one of those happy chances, the stuff that television’s dreams are made of, she was being treated by one of London’s most fashionable medical practitioners, who also happened to number among his patients one Mr H. Grunfield. Mr Grunfield was a senior partner in the merchant banking firm of Warburg & Company; what is more, he had already formed his own shrewd conclusions as a banker that commercial television in Britain could be as big and bountiful as it had been in the United States, if used effectively.

It took only an introduction from their mutual doctor to fuse the ambitions of Suzanne Warner to the resources of Mr Grunfield and to deliver them both at the doors of Lew, Val and Prince. Thus was the Incorporated Television Programme Company born, and no one who had any part in it – except, as it proved later, Dr Nathaniel Mayer Green, the accommodating practitioner – had any cause to rue their participation. Their company was to become the most profitable of all the commercial empires, and when it did so, Dr Mayer Green sued both his former patients for a portion of the fortunes they had amassed from their founder shares; shares which he had at the time declined. The cases were settled out of court.

Compared to the slippery, rock-strewn trek they had to make to reach the top of the mountain, the doctor’s litigation was merely a pebble to be cast lightly aside. By then they had survived far worse vicissitudes. When the ITA came to award contracts, the Incorporated Television Programme Company was the only one of the five competing contenders whose bid was rejected. The first three, announced on 27 October 1954, went to Lord Kemsley’s alliance with the television producer Maurice Winnick; to Associated-Rediffusion; and to Sidney Bernstein’s Granada chain, those former pious opponents of allowing anything but a public corporation to invade the sanctity of the home via the cathode ray tube.

Before going in with Lew Grade, however, Prince Littler himself had begun by vehemently mistrusting the advent of commercial television. He saw it as a real threat to his theatre empire, and in this proved quite correct. But he rationalized his fears with a businessman’s innate instinct for survival. He realized in time that, if television was going finally to complete the erosion of popular variety which the cinema had begun, he would guard his interests better by exerting his influence from within the enemy camp. He quickly became chairman of the board of the Incorporated Television Programme Company. A similar logic must also have had as much to do with Sidney Bernstein’s volte-face as his undeniable socialist desire to make his mark on the progress of the new mass culture. And though Associated-Rediffusion were the only experienced operators in the broadcasting field, they too had gone on record as believing that commercial television would not be in their best interests before waking up to the inevitable and putting in their bid.

Norman Collins, perhaps the only one among the contenders who was not counting the possibilities of the new service in terms of business expansion, was offered the franchise to broadcast London’s weekend programmes and weekday to the Midlands. That he should have been awarded such a rich base for his Associated Broadcasting Development Company was only to be expected, and was only fair. His role had been crucial in bringing the ITA into being.

Had he been more of a businessman and less of an idealist, had he seen his new brainchild in the same light as his competitors, he might well have hung on to that franchise. It was, however, significant that he took a week longer than the rest to accept the offer. Benson, Lonsdale & Co., the bankers Lord Bessborough had brought into his deal, were already dragging their feet. Their over-hesitant caution caused them to under-invest and ultimately cost Collins his contract. Winnick’s group was also in dire financial need. His Kemsley backers developed cold feet at the last minute and withdrew. The financial hiatus took Winnick, the clever operator who had introduced the popular panel game What’s My Line? to the BBC, out of the running before the starting-pistol was even fired.

The collapse of the Collins enterprise – on the face of it, the safest and most public-minded of all the companies – gave Prince Littler’s conglomerate the breathing space it needed to regroup for a fresh attack. Lew Grade’s explanation of their failure to capture one of the four contracts was probably the correct one. ‘It was the result,’ he said, ‘of too great a publicity campaign in which we made it look as if we owned the world.’

The ITA members were deeply reluctant to hand over one of their precious contracts to such a daunting array of vested interests: the complex web of the Grade Agency (of which more later) allied to the might of the Moss Empires variety chain along with the commercial radio interests represented by Harry Alan Towers and the powerful spending potential of Warburg’s merchant bank.

It is still a part of Lord Grade’s charm that the best stories against him are invariably the ones he tells himself. ‘As far as I was concerned, Warburg’s might have been a chocolate company when their name was first mentioned to me,’ he confesses. ‘So I called up a friend of mine, Sid Hyams, and asked him if he’s ever heard of them. He said: “Yes, they’re merchant bankers.’” Which was also how Warburg’s became part of the act.

The ITA held out for many months against the Littler-Grade-Warburg conglomerate. But a neat side-step, as neat as anything Lew Grade ever accomplished in his early days as a novelty dancer on the variety stage, shook the authority’s determination. Littler, having started as a reluctant recruit to the joys of commercial television, had grown incensed by the ITA’s refusal to recognize his group’s claims. He began to fight an ever more determined campaign, and when Norman Collins finally had to capitulate to the parsimony of his bankers and bow out, Littler was ready to advance his forces. The remnants of Collins’s Associated Broadcasting Development Company merged with Littler’s light entertainment giant, and the weight of Collins’s reputation clinched the matter. In the spring of 1955, ITA announced that the newly formed Associated Broadcasting Company – almost immediately the title was changed to Associated TeleVision (ATV) – would fill the breach by taking over the contract to broadcast London’s weekend programmes and the weekday schedules in the Midlands. Littler, Parnell, Grade and their holdings were in the race after all, and again it was Collins more than anyone who had made the success possible, though he could hardly be expected to feel altogether happy at this outcome to events. In such company he had effectively lost control of his own brainchild.

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