HC Deb 29 March 1973 vol 853 cc382-4W
Mr. Meacher

asked the Chancellor of the Exchequer what were the post-tax percentage rates of profit, net of stock appreciation, on net assets in quoted United Kingdom companies in manufacturing, construction, communications and distribution for each quarter of 1972 and for each year since 1960.

Mr. Nott

Precise figures are not available. The table below shows for each year since 1960 estimates for quoted companies on some alternative bases.

Columns 1–4 show for manufacturing, distribution and other industries—which include construction and communications —and for manufacturing industry alone net income both pre- and post-tax as a percentage of net assets. Net income comprises gross trading profits and other income less depreciation. Post-tax rates are before the exclusion of tax withheld on dividends; the adjustments for this are approximate in the years before the introduction of corporation tax. The estimates are based directly on the analysis of quoted companies' accounts pub-

Manufacturing and distribution etc. Manufacturing
Net income as percentage of net assets
Pre-tax Post-tax Pre-tax Post-tax Pre-tax rate of profit on capital employed at replacement cost
(1) (2) (3) (4) (5) (6)*
1960 … 16.0 11.3 15.7 11.1 14.1 13.6
1961 … 13.9 9.9 13.4 9.6 11.9 11.4
1962 … 12.7 9.2 12.1 8.8 10.3 10.0
1963 … 13.5 9.8 12.9 9.4 11.1 10.3
1964 … 14.7 10.4 14.2 10.1 12.2 11.5
1965 … 13.9 9.4 13.4 9.1 11.3 10.4
1966 … 12.3 8.0 11.8 7.6 9.6 8.8
1967 … 12.4 7.7 11.9 7.3 9.9 9.5
1968 … 14.2 8.5 13.7 8.3 10.9 9.1
1969 … 14.1 8.4 13.3 7.9 9.9 80
1970 … 13.1 8.3 12.1 7.6 8.5 6.3
1971 (provisional) … 13.8 9.0 12.8 8.3 N.A. N.A.
*Net of stock appreciation.

Mr. Meacher

asked the Chancellor of the Exchequer what were the gross trading profits of private companies, net of stock appreciation or capital consumption, as a percentage of net company capital stock for each quarter of 1972 and for each year since 1960.

Mr. Nott

For all companies in the private sector, trading profits net of stock appreciation and capital consumption as a percentage of net capital stock—at current replacement cost—for each year since 1960 are estimated as follows:

1960 … … 16.5
1961 … … 14.1
1962 … … 12.6
1963 … … 13.7
1964 … … 14.0
1965 … … 13.1
1966 … … 10.8
1967 … … 11.4
1968 … … 10.3
1969 … … 8.2
1970 … … 7.2
1971 … … 7.3
1972(provisional) … … 6.3

Quarterly figures are not available.

lished in the Business Monitor, M3, Company Finance. Thus net assets are at the book values recorded in the accounts and net income is before allowing for stock appreciation.

Column 5 shows for manufacturing industry only the pre-tax rate of profit on capital employed on a replacement cost basis, prepared by the Monopolies Commission from the abovenamed source. Column 6 shows these same figures, but with an approximate adjustment made to exclude stock appreciation.

No estimates are yet available for 1972, and no quarterly figures are available.