in any expansion of industry or national prosperity &amp;hellip; . the electrical industry must be in the forefront . Lord Chandos Chairman of associated electrical industries . the sixty-first annual general meeting of associated electrical industries limited was held on April 20 at Grosvenor House , Park Lane , London , W.1 . the Rt Hon Viscount Chandos ( the Chairman ) presided and said : I have , first a sad and heavy task to perform . two of our Directors , Lord Weeks and Mr Comar Wilson , have died since the date of the last annual general meeting . their colleagues on the board have suffered the loss of two friends . their experience and knowledge in the wide field of business will be greatly missed , and we record our deep gratitude for their services to the board over a long period . Lord Head resigned from the board on his appointment as High Commissioner in Nigeria . our regrets at losing his services are , in a measure , offset by the knowledge that the post which he now fills is one of the most important in the commonwealth . top management strengthened . I want next to tell you of certain appointments consequent upon the reorganisation of the company into a single trading entity . we have strengthened the top management at head office . Sir Cecil Dannatt was appointed Vice-Chairman in April last year , and I take this opportunity on your behalf of congratulating him upon the knighthood which her majesty has conferred upon him . he took up his duties last May and his support and knowledge have already proved of the highest value . later in the year , Mr C R Wheeler was also appointed a Vice-Chairman . we would like publicly to thank Guest , Keen and Nettlefolds Ltd for having agreed to his release . Mr Wheeler will take up some executive duties next year . we have gained a notable accession of strength by his appointment . Sir Joseph Latham joined the board in August , and since that date he has become Director of finance . his wide experience of both finance and accountancy is proving of outstanding benefit to the company . Mr H West , who has served the company with distinction for 42 years , succeeded Dr Dannatt as group managing Director at Manchester in April last , and was elected to the board at the end of the year . Mr R I Basset , who for many years has been a Director of AEI Woolwich , also joined the board . you will be asked to confirm these appointments later . Mr E R Mason has been appointed the sole managing Director of AEI Export , and Mr W A Ankerson assistant managing Director of the Woolwich group . Mr D T L Rettie has been appointed the managing Director of our subsidiary dealing with domestic appliances overseas - A.E.I Gala . retirements . I can not refer to all those who retired last year , although they are much in our minds , but I would like to mention two by name . first , Mr E V Small , who for a great many years has been concerned with our export business , and who has been notably ingenious and successful . there are a number of contracts still current which he negotiated , and we have retained him as a consultant upon these and more general matters . secondly , Mr F Tankard , the Comptroller at Manchester , who has left us on reaching retiring age . we thank him for his past services , and wish him well for the future . to all who have retired , we wish happiness and long life . research leaders honoured . finally , we congratulate all those who have featured in the year &apos;s honours lists , and particularly Dr T E Allibone and Mr L J Davies . the former is the head of our fundamental research laboratory at Aldermaston , and the latter the head of research at Rugby . 1960 trading profit after tax virtually unchanged . I will deal with the figures very briefly . the trading profit , after tax , was virtually unchanged at &amp;pound;4,722,000 compared with &amp;pound;4,747,000 last year . although the depreciation charged has risen by &amp;pound;378,000 , this was more than offset by a reduction in our tax liabilities . the adventitious profits , which will form part of our revenue as we change our investment , are considerably lower than last year . together with amounts set aside for taxation now no longer required these profits are at just above &amp;pound;1 m compared with just under &amp;pound;2 1/2 m . the total retention in the business , or , to use the American term , the cash flow , is for this reason slightly less than last year , at &amp;pound;7,843,000 compared with &amp;pound;8,127,000 . the increase of &amp;pound;10 m in working capital consisted partly of bigger stocks of finished goods but mainly of work in progress on large contracts . the financing of exports is a heavy burden and we welcome any help that H.M government can give us . at the end of the year the group &apos;s bank overdrafts totalled over &amp;pound;9 m : however , &amp;pound;5 1/2 m related to the financing of the Berkeley contract and is largely self-liquidating . the board have no proposals for the issue of additional capital . the payment of total ordinary dividends of 3 /- per share , will require about &amp;pound;140,000 more than last year because of the issue of additional ordinary shares to A Reyrolle and Co Ltd in exchange for our participation in C A Parsons and Co Ltd . there was some loss of revenue involved in the exchange of these shares for shares in C A Parsons and Co Ltd in 1960 , which of course will be largely recouped in 1961 . the total stockholders &apos; capital employed in the business is &amp;pound;138,906,000 , the equity capital is &amp;pound;133,120,000 , against the nominal figure of &amp;pound;42,828,000 . the 3 /- ordinary dividend represents a return on the equity capital of slightly under 5 % . turnover up - record order book . the order book is a record . compared with last year the orders received increased from &amp;pound;182 m to &amp;pound;233 m . our turnover increased from &amp;pound;208 m to &amp;pound;215 m , and orders in hand have increased from &amp;pound;173 m to &amp;pound;181 m . sometimes an increase in the orders in hand is regarded as a wholly favourable feature , but this is only true to a limited extent . if the growth in the order book is not matched by parallel growth in engineering and manufacturing capacity it would adversely affect our delivery dates . at the figure of &amp;pound;181 m orders would appear appropriate and satisfactory in relation to your business and its annual turnover . I would also remind you that the order book in lamps and lighting , domestic appliances and television and radio is , from the nature of the business , only an insignificant percentage of the turnover . new telephone cable subsidiary . although the deal was not completed until January 1st , as part of the rationalisation in the cable industry , we increased our shareholding in southern united telephone cable Co Ltd by purchasing from British insulated Callender &apos;s cables Ltd the major proportion of their holding . we now own 74 1/2 % of the company . its name has been changed to telephone cables Ltd and it is now a subsidiary . the balance of the shares are held by our old associates in this venture , Enfield cables Ltd , and it is a matter of satisfaction to all of us to have them as partners . the general condition of the electrical industry has made it desirable , and will continue to make it desirable in certain fields , particularly that of research , to engage in co-operative enterprises in order to conserve technical man power and reduce the heavy expense entailed . 1960 is regarded by your Directors as a disappointing year because the increased profits for which we had budgeted were not realised . cables , telephones , lamps and nuclear power . I told you last year that during 1959 we had four parts of our business which were causing us anxiety . I recapitulate them : they were cables , telephones , lamps and lighting and nuclear power stations . you would wish me to report on them . first , we were engaged in rationalising the cable part of our business at a time when demand for cables was particularly buoyant , and when prices were particularly low . during 1960 , the average prices of cables in the two main categories , mains cables , and thermo-plastic and rubber-covered cables , were still about 17 % below what they were in April 1959 , and since 1959 we have had to absorb both an increase in wages , and the extra cost involved by a shorter working week . it proved to be a difficult and complicated task to bring about this rationalisation and the savings consequent upon it , and we were unable to do so quite as quickly as we had expected . it is now practically complete and profits should be made in 1961 . these facts should make a considerable difference to the revenue of the company in the present year . secondly , telecommunications . although governments are unused to thanks , the reorganisation of the post office as a trading department , which now does not have to return its surplus at the end of each year to the Treasury , will be widely applauded . its new status enables the post office to plan ahead , and we in our turn , as manufacturers , can similarly plan on a more stable foundation , and so bring employment and production into line with the needs of the post office . the telecommunications division , in 1960 , traded at a marginal loss , but the outlook for 1961 is more favourable , and although the equipment which we supply is rigorously costed by the post office , we expect a moderate return on the capital employed . thirdly , lamps and lighting . for three or four years , and in face of falling prices , we have made strenuous efforts to rationalise our production and to reduce our costs . I am glad to say that this long and intricate task is now practically completed . in 1960 we increased our share of the market , and traded at a better though still inadequate profit . some further improvement should be made in 1961 . fourthly , nuclear power . the Berkeley station is due to come into commission this year . I can tell you no more on the outcome of the contract than to repeat what I said last year , which is that the sum set aside is what prudent people would allow against contingencies . I am not in a position to release any of the ear-marked reserve to revenue or to our general reserves , nor on the other hand do I think it necessary to increase the reserve at this moment . you will remember that last year the interests of A.E.I John Thompson nuclear energy company Ltd were amalgamated with those of the nuclear power plant company into a new partnership called the nuclear power group . this merger has enabled large savings to be made in technical staff and in costs , and the operations now appear to be adjusted to the likely volume of orders . in July 1960 the new group received the order for the Dungeness station , the largest projected station at that time . the risks involved in tendering for the second station are far less than those involved in the first , when we were breaking new ground , as the earlier problems can now be accurately assessed . it should be remembered that competition is still extremely keen , but we expect to make a modest profit upon the station . the nuclear generation of power is going to be a permanent feature of the national economy , and both as a source of revenue , and as a protection of our conventional business , the reasons which impelled us to enter this field still seem unassailable . I can not but express my disappointment that the engineering and scientific effort at Berkeley may be rewarded with a loss . on the other hand , if you regard the money which we may lose as a development expense and not as a contractual loss , large though it may be , it brings the whole subject into closer perspective . such were the four parts of your business which gave us anxiety at the close of 1959 . I believe that they are all now in a much better posture . domestic appliances , radio and television components hit by hire purchase restrictions . before I deal with the future , there are two other matters concerning 1960 to which I must refer . 