Clayton Forge

  A meeting of the creditors of Clayton Wagons, Ltd., Lincoln was held at at the Cannon Street Hotel, London on Friday, presided over by Sir William McLintock, the liquidator o the company, when it was stated that the liabilities were £86,291. against assets £61,395.  The probable dividend for unsecured creditors would be 14s 3d. in the £, but the position depended almost entirely on the realisation of the Abbey Works.  

The Chairman said that the assets were estimated to realise £168,831. but they were subject to debenture and other charges.  The debentures were held by the bank, who claimed £89,936.  so far as the creditors were concerned, the principal asset was the Abbey Works at Lincoln, which appeared in the books at £172,202, and it would be realised on the works.  The deficiency as regarded by the shareholders was £584,896.  

The Chairman stated that he has been appointed to act as the receiver for the bank.  The Company was registered in 1920, and the prospectus was issues in April of that year offering 450,000 cumulative participating shares at £1 each, carrying interest at the rate of 8 per cent per annum.  The shares were duly subscribed for by the public, and the Company acquired from Clayton and Shuttleworth the Abbey Works, Lincoln, which dealt with the manufacture of railway rollingstock, together with the Clayton Forge, which produced forgings chiefly for motors, and the Titanic Works, which manufactured steam road wagons.  The Titanic Works were sold in 1928 to Clayton DeWandre Co., Ltd.   The purchase price of the works taken over from Clayton and Shuttleworth was £550,000. which was satisfied by the issue of ordinary shares to that amount.

SUBSTANTIAL LOSSES    

The original capital of Clayton Wagons, Ltd., was £1,000,000, but in 1925 there was a scheme of reconstruction which involved the reduction in the dividend on the preference shares 8 per cent. to 5 per cent., and of the 5500,000 ordinary shares issues to Clayton and Shuttleworth, 440,000 were cancelled.  The reconstruction was necessary owing to the very substantial losses incurred up to 1925.  

Sir William McLintock pointed out that the published accounts of the Company showed that in 1923 the loss was £79,000. while in 1924 it amounted to £122,000.  In 1925, there was a year of profit of £728. and in the next year a profit of £1,520. but in 1927, there was a loss sustained of £49,000.  In 1928, the loss was £67,000.  The results of the trading showed aggregating £295,000.  He was satisfied that since the last accounts were prepared there had been a further heavy loss on the trading.

SALE OF THE CLAYTON FORGE

The  Clayton Forge at Lincoln, together with the stocks and book debts appeared in the Company's books at £247,766.  That appeared to be the only readily saleable asset of the Company, but although it was extensively advertised, the best offer received for it was £74,974, and after taking advice, he accepted it.  

There remained the Abbey works, which with the plant, land, etc., stood in the books at £172,202, but he had only values them at £65,000.  

The present position of the Company was attributed to the lack of working capital, while there had been a very unfortunate trading experience in the connection with the manufacture of steam road wagons.  It appeared that something like £200,000 was lost in that section of the business and the manufacture was continued longer than would appear te have been justified.

  A resolution was unanimously passed confirming the voluntary liquidation of the Company, with Sir William McLintock as liquidator, and an advisory committee of six principal creditors was also nominated.

Retford and Worksop Herald and North Notts Advertiser - 26 November 1929 

Mr. Sidney Bramhall was appointed the works manager of the Smith-Clayton Forge on 15th October 1934.

As part of his modernisation and expansion of the Smith-Clayton forge, her persuaded the Board of the company to purchase the adjacent Abbey Works that lay unused.  The Official Receiver only wanted to sell the site a whole rather than part of it, as Smith-Clayton Forge wanted, but an offer of £6,000 was accepted for the whole site. 

75 Years - A record of progress.  Smiths Stamping Works, Coventry; Smith-Clayton Forge, Lincoln.  Augustus Muir