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Companies And Manufacturing Industry (Bank Advances)

Volume 981: debated on Tuesday 18 March 1980

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asked the Secretary of State for Industry whether he will publish in the Official Report a table showing for each year since 1952 the proportion of borrowing financed by bank advances in the case of all companies and manufacturing, respectively.

The information which is available on a comparable basis for all industrial and commercial companies and for manufacturing companies is given in the table below. The figures are on the basis of gross borrowing less redemptions or repayments each year. Borrowing is defined as bank borrowing, debentures, other loans and mortgages—but see footnote (c).The figures have been obtained from the regular analyses of listed United Kingdom companies' annual published accounts. The number of companies covered has varied from nearly 3,000 in the earlier years to around 1,000 of the larger ones for the more recent years. Around two-thirds were companies whose main activity was manufacturing. Companies whose activities were mainly overseas have been excluded from the analysis.The figures are not fully comparable in coverage from year to year because of changes caused by, for example, acquisitions, and liquidations have affected the composition of the panel of companies. Moreover the panel was

BANK ADVANCES AS A PERCENTAGE OF BORROWING FOR LARGE LISTED COMPANIES (a)
Manufacturing, distribution and certain other services (b) Short-term loans (c)Manufacturing Short-term loans (c)
ExcludedIncludedExcludedIncluded
1952-169ֵ-32ֵ
1953-215ֵ-130ֵ
195425ֵ11ֵ
195544ֵ41ֵ
195641ֵ42ֵ
195725ֵ24ֵ
195818ֵ4ֵ
195949ֵ33ֵ
196082ֵ89ֵ
1960*84ֵ93ֵ
196163ֵ63ֵ
196221ֵ19ֵ
196342ֵ34ֵ
196445ֵ48ֵ
1964*45ֵ48ֵ
196547ֵ50ֵ
196627ֵ28ֵ
19679ֵ9ֵ
196829ֵ23ֵ
196958ֵ60ֵ
1969*55455544
197057435743
1971-25-23-44-43
1972342987
197363576661
197492789280
1974*95799381
1975-34-1811
197674717266
197749485152
* Comparable in coverage to the following year.
ֵ Indicates not available.
Notes:
(a) All listed companies up to 1960.
(b) See Business Monitor MA3—Company Finance for a full list of all the industries.
(c) Short-term loans other than bank loans. Before 1969 these loans were included indistinguishably with trade creditors.
Source:
Various issues of Business Monitor MA3—Company Finance and the publications that preceded it, as listed at the back of MA3