1921 – 1936 Trading Review

The combworks were first formed under the name of S. R. Stewart & Co., in Aberdeen in the year 1820. They continued to make progress until eventually in the year 1899 The Aberdeen Combworks Co. Ltd. was formed which took over several firms in the same line of business, the original members of S. R. Stewart & Co., maintaining control. The business grew rapidly until at the present time the works cover an area of about nine acres of ground.

It is unnecessary for our present purpose to deal with the period before and during the War. The Post-War period is of more interest, and we give you hereunder figures from 1921 to the present date.

It will be noticed that subsequent to 1921 foreign competition became intensified and was reflected in the figures of the Company. This was due mainly to the importation of goods from the Continental Markets which recommenced their activities after the War period. It became greatly intensified by the innovation of imported combs from Germany (Rubber), Austria (Rubber), Czecho-Slovakia and Esthonia (Celluloid)., but notwithstanding this the Company was in an excellent position until the later half of the year 1929 when, to add to the competitive troubles, the depression became felt. Even then progress was still maintained.

In the year 1931 the Japanese came into the field, importing ever increasing numbers of very cheap goods till the climax was reached in 1934/5 when over 127,000 gross of combs were imported from Japan alone at an average price of 8/ -½d. per gross c.1.f.c.1.

Against these imports and prices manufacture in this country on a competitive basis became entirely impossible. It should here be remarked that from time to time imports were checked:-

1. By the imposition of a general tariff on all imports, which, in the case of combs, was 20%.

2. A slight check was imposed by a marking order which was granted by the I.D.A. C.

3. In April 1936 a duty oi 8/- per gross or 20% whichever the larger was imposed.

By this time, however, very large stocks had accumulated in this country which, naturally took a considerable time to clear. It will be noted from the figures given that the company’s worst year was the year ending 31st December 1935 and from the above remarks the reason will be readily understood.

1936 also showed a small loss but owing to re-organisation in the Company and on the sales side great improvements were made. As mentioned in our previous rough report our London Depot was reorganised with the result that an increase occurred of 100% in Sales over the previous year without extra cost percent to the Company.

We are glad to say that this increase has been maintained during the year 1937 to date and that the Company has taken, to date, approximately £1,000 or say 22½% more orders than in the corresponding period last year. From information which we have this increase will be maintained, and as our re-organisation of the Sales Department continues will be increased.

The Company has regained its position as suppliers to His Majesty’s Government, and the large Contractors. We have this year obtained all the main contracts available, viz:- The Army Contract, The Navy Contract, the London County Council Contract, the West Derby Union Contract, and H. M. Office of Works Contract. The only contract which we have lost is the Indian Army Contract. This was lost, not on account of price but due to the fact that these people have transferred their favour to Vulcanite Combs.

In criticising the figures you will notice that during the bad slump year of 1931 there was a loss. There was also a loss in 1935 when the Japanese competition was at its height.

The general falling off in figures, as far as we can ascertain, is due to the preference, as given in my previous report, for Moulded goods.

In this connection it may be of interest that an equal display was made in a certain Store of Moulded and Cut Goods. The moulded goods had a sale in the proportion or three to one over and above the Cut goods. Also the fact must be taken into consideration that the influx of cheap Japanese Goods has influenced the market tremendously in the direction of Moulded Combs.

STOCKS. Criticism made on the size of our stock. I am able to explain to you that it has been written down very considerably and could, to a great extent, have been cleared during last year. This, however, was not done owing to the fact that prices were rising and it was thought advisable to hold them for a short time in order to obtain better prices.

A fairly large stock, however, is inevitable with a large number of Patterns, which we are forced to run. In the introduction of a new line we would be in a position to prevent this occurring.

In conclusion we may say that it is essential to make an early start.

Source : Typed document