Talk Morgan Forums Morgan Sports Cars Morgan Three Wheeler & Super 3 MMC Financial Results

Very much depends on the amount of R&D charged to the p&l and also the depreciation policies. There are many ways to legitimally reduce the reported profit for tax purposes. Without knowing all of this, bald turnover and profit figures are meaningless!!

Cheers!

It's all in the published accounts.

The car in the newspaper picture is not a Super Aero, probably an Aero.

Super Sport Aeros of that year have a cranked top tube, and inverted lugs on the bottom tube of the front crosshead. Not a sensible car for trials, a plain Aero makes a lot more sense.

Of course

You gear the business costs and wages and dividends based on expected sales and profit and to what you want to do with a business, what the exit strategy is.

For instance if you want to sell a business, you want to get the very most for it so you drive down costs as much as you can, drive profits as high as you can

The first lesson for all directors is - know the figures and keep knowing them so you can gear costs and wages accordingly

I've been a director in various capacities for nearly 20 years and I know close to exactly how much profit the companies I've worked for will make at least 4 months before the end of the financial year and before the audit

Pensions, advertising, charitable donations investing in plant and equipment are all tax deductable

Ok you are talking about adjusting medium term company stratagey here which can effect profit or effect say directors earings to suit the situation in hand.

I was thinking you were saying that at the end of the tax year you could as it were cook the books to give the level of profit that you wanted.

Agreed a well run company should have a reasonable handle on their year end situation well before the year end.

Yes I've reread my post and it does look like I meant cooking the books

That's not quite what I meant

Obviously the more successful a company is the more choices it gives directors to reinvest in assets or take advantage of legitimate tax advantages

The clue to how a business is run and whether there is an exit strategy is looking at three years of accounts - if profits are consistent but low but owners/ directors are paid well, I would say it's very well run without a desire to sell although these would be classed as adbacks if valuing a business

I do think that it is a real success story for any British small scale car manufacturer to be turning in a profit no matter how small and should be celebrated more in the media particularly with the export market

Look at Lotus' accounts

Bentley, Rolls Royce and Jaguar are all hugely successful manufacturing in the UK with British jobs and get the plaudits but they are not British owned so any profits go out of the country

It's just a real shame that the family trust and family shareholders seem to be in a bitter dispute that doesn't seem to be going away and Charles Morgan is no longer part of the day to day running of the business as he was a great ambassador and spokesman for the business

His shareholding will be important at a voting level but if outvoted then there is nothing he can do

Well 5% NPTP is not good by any standards...BUT as is being said it depends on what Results u want to show. They could ..for example make a massive provision for warranty work ...or to pay for known future/ongoing legal fees etc.I would guess that the Gross Margin on Cars is v high.So Provision is almost certainly behind the published Results.A prudent move too!

Good point about Lotus too ...was it a £179M loss??

Stewart,

have to disagree, a bit, about JLR, they are Indian owned, for sure, but from what is published a large part of the profits seem to be re-invested in the UK manufacturing. The number of new jobs at the engine factory and the expanded Jaguar factory is some of the best UK Car industry news for many years.

As to CM and Morgan, he is what he is and my view is that without Peter riding shotgun he evolved from being an asset to a liability. To afford a CM type of person the Company needed to be selling twice as many cars and have a very strong Chairman, like Peter. CM is emotional, from her tweets his wife more so. The combination was not a good characteristic to have in the top job.

A small private Company can declare whatever profits the owners agree, as long as the accounts are signed of by the Auditor. As long as the cash flow is positive and the debts, if any, are serviced profit at the bottom line isn't that important. When we ran our Company we worked hard to keep declared profit to a minimum. That is what Directors bonuses are for!!