Like a benevolent uncle twinling with goodwill, Lord Weinstock has delivered a glowing set of results that look set to see the veteran General Electric Co Plc managing director depart in a blaze of glory after 33 years at the helm. So delighted was the City on receiving news that pre-tax profits jumped 10% to 981m British pounds on revenue up 6% at 10,990m pounds, it bumped up the share price by 12 pence to 363 pence by yesterday afternoon. The figures include exceptional items of 23m pounds for the year, comprising a 49m pounds provision in respect of a contractual dispute, and a 25m pounds net gain from the disposal of subsidiary companies and other fixed investments. And when George Simpson, presently chief executive of Lucas Industries Plc, slips into Lord Weinstock’s seat after September’s annual general meeting, he is likely to find his work cut out for him if similar problems are to be avoided in the future. Net cash at year end fell 13% due to reduced cash holdings and lower interest rates, but with a balance at 1,152m pounds, or 2,617m pounds if its share of net cash in joint ventures is taken into account, there is no immediate cause for alarm. The group’s three major divisions performed well during the year, and each contributed towards the overall profits. The Electronic and Defense Systems arm, dominated by the GEC-Marconi companies, which are intended to start growing on the civilian side, out-shone them all. Boosted by the acquisition of UK warship and submarine builder VSEL, the division’s profits shot up 42%. GEC Alsthom power engineering and the GEC Plessey Telecommunications Ltd business jointly owned with Siemens AG, each achieved record turnover during the fiscal year. In fact, GEC said its smaller Industrial group was the one area of business that refused to maintain a healthy financial glow during the period.
