HC Deb 25 March 1976 vol 908 cc256-8W
Mr. Robert Taylor

asked the Secretary of State for Wales what are the grounds for making an interest-free loan to Penrad Limited.

Mr. John Morris

The loan was made to Penrad Group Ltd. for use on behalf of Penrad Ltd., a wholly owned subsidiary, for the purpose of maintaining the company in production and thereby preserving the jobs it provides. The loan carried an initial interest-free period of two years to assist the company's efforts to attain a state of profitability. Interest becomes payable after two years.

Mr. Robert Taylor

asked the Secretary of State for Wales how many employees there are in Penrad Limited; what is the total amount of taxpayers' funds invested in or granted to this company; and whether any further amounts are contemplated.

Mr. John Morris

I understand that the company at present employs 250 persons. The total amount of taxpayers' funds granted to Penrad Group Ltd. for the use of Penrad Ltd. comprises a secured loan of £300,000. A subscription of £100,000 for cumulative redeemable preference shares from Government funds has been offered to Penrad Group Ltd. but not yet taken up.

Mr. Robert Taylor

asked the Secretary of State for Wales what is the ratio of shareholders' funds to Government support in Penrad Limited.

Mr. John Morris

The latest published accounts for Penrad Group Ltd., in which Penrad Ltd. is consolidated, show shareholders' net funds at 31st December 1975 standing at £249,682 and Government loan at £300,000 giving a ratio of 0.882: 1.

Mr. Robert Taylor

asked the Secretary of State for Wales what is the ratio of shareholders' funds to total borrowings, including taxpayers' funds, in Penrad Limited.

Mr. John Morris

The latest published accounts for Penrad Group Ltd., in which Penrad Ltd. is consolidated, show shareholders' net funds at 31st December 1975 standing at £249,682 and total borrowings at £1,061,309, giving a ratio of 0.235:1.

Mr. Robert Taylor

asked the Secretary of State for Wales whether the chairman of Penrad Limited forecasts a profit for the current year.

Mr. John Morris

The Chairman's statement in the published accounts of the Penrad Group Ltd. for the year ending 31st December 1975 contains no forecasts of trading results for the current year.

Mr. Robert Taylor

asked the Secretary of State for Wales whether he will place in the Library copies of the annual chairman's statements and of the audited accounts of Penrad Limited during the years that the company has received assistance from the taxpayer.

Mr. John Morris

I have arranged for a copy of the published accounts of Penrad Group Ltd., in which Penrad Ltd. is consolidated, for the year ending 31st December 1975 to be placed in the Library. The accounts include the annual Chairman's statement. This is the only year in which the group has received assistance from the taxpayer.