Clayton Wagons Limited

After the First Word War, Clayton & Shuttleworth underwent a big restructuring of the business. This was due to several reasons, they had undergone rapid expansion to support the war effort, part of which had included a loan that needed repaying, the Russian revolution had happened meaning that there was a debt in the region of £250,000 owing from Russian interests, and the Company’s core pre-war market had collapsed after the war, in 1924 this was reported as being only 6 percent of pre-war levels.

From the 1st April 2020, the new company of Clayton Wagons Ltd took over the Titanic and Abbey Works, and the Clayton forge and stamping works that was next to the Abbey Works. They were to be ‘manufacturers of steam motor wagons, railway rolling stock and drop forgings’.  On the 15th April 1920, an agreement was signed to purchase assets from Clayton & Shuttleworth Ltd. The new company had the authorised capital of £1,000,000, made up of 450,000 8 per cent cumulative participating preference shares of £1 each and 550,000 ordinary shares of £1 each. The Board of Directors was made up of five people, of which four were existing Directors of Clayton & Shuttleworth Ltd. This, combined with Clayton & Shuttleworth Ltd being paid £459,993 in ordinary £1 shares for the assets that were transferred to the new company might explain why nine years later, the Official Receiver of Clayton & Shuttleworth reported that he was having difficulty in working out the relationship between the two businesses. The independent valuation of the assets came to £696,612 10s and 10d excluding Goodwill. It is worth noting that Clayton & Shuttleworth were paid less than the valuation. It was estimated that annual turnover would be £1,500,000 per annum. 

According to the share prospectus published in the Lincolnshire Echo on the 26th April 1920, the works are described as follows:

     The Works are new, constructed on the most up-to-date principles with central heating, electric light and power, and fitted with specialist modern plant.

     The Titanic Works and land adjoining, extending to over some five acres, with the Main Machinery Bay 1,000ft long, and its large erecting shop 600ft long, will be devoted to the organised production of Steam Motor Wagons of the most approved types.

     The Abbey Works and lands extending over some twenty acres, will be employed in the production of standardised types of Railway Carriages and Wagons.

     The Forge Works, to which ten acres of freehold land are allocated, are equipped with one of the largest and most up-to-date installations of Plant at present in this Country for the production of all classes of Forgings and Drop Forgings for Motor Work, Commercial Lorries, Electric Vehicles, Farm Tractors and Railway Rolling Stock. 

     In addition the Company will also acquire a further twenty eight acres of freehold land adjoining the Abbey Works and Forge, which will be available for extensions of the Works. The three Works have direct siding connection with the Great Central Railway.