COMPANY NOTES
DICTOGRAPH TELEPHONES. This com- pany is well known for its inter-office communications; it also manufactures, for sale and rental, staff location systems, electric clock and time recording systems. For the' year to August 31, 1959, there has been a large increase in the trading profit-a record-and the net profit, after tax, has expanded from £95,117 to £148,327. The liquid position has also improved, cash and tax certificates amounting to as much as £135,451 against £37,312 last year. The company has always been conservative with its dividend; 20 per cent. is again being paid, this time from earn- ings of 63.2 per cent., but it would pay to hold on to these shares as, in the past, when the capital has been increased by a scrip issue, the rate of divi- dend has been maintained. Total reserves now exceed the issued ordinary capital of £375,000, so that there is plenty of room for a free scrip issue. The 2s. ordinary shares have improved to 11s. 6d. to yield 3.4 per cent. on the 20 per cent. dividend of 4.8d. per share.
Kenwell Property Holdings came under the control of the present board of directors in Nov- ember, 1958. Since then substantial changes have been made; the issue of further 2s. ordinary shares at 8s. each has resulted in a credit of £289,181 to the share premium account and a total issued capital of £144,591. The balance sheet to June 30, 1959, discloses that the group owned freehold and leasehold properties at a valuation of £864,816. Since that date two further property companies have been acquired; these together with the four subsidiary companies own proper- ties to the value of £1,037,038. These are mostly shop and commercial, let to first-rate tenants; many of the leases will in the future be renewed on largely increased rentals, so that prospects look extremely encouraging. Gross profits were £18,123, net £5,374, from which it is not pro- posed to pay a dividend, but it is proposed to increase the authorised capital to £1 million and to issue free 240,984 £1 54 per cent. cumulative preference shares in the proportion of one share to every ten ordinary 2s. stock units held. The chairman, Sir Cyril Black, confidently expects to make a substantial payment next year, by way of an interim in May and a final dividend in December. Consequently the 2s. stock units at present valued at around 10s. 6d. should prove their worth in time.
South Perak Rubber Syndicate. The company's new chairman, Mr. B. E. Greene, is able to report an investment income of £7,456 and a net amount after tax of £4,556 for the year to September 30, 1959. The company's quoted investments show an appreciation of just over £100,000 and in fact have doubled in value during the past twelve months. The tin-bearing lands in Malaya have now been sold, for which £23,000 has been credited in the accounts. A 55 per cent. interest has just been acquired in the quoted share capital of The Queen's Hotel, Hastings. The board hope to make other acquisitions as and when possible from the company's unemployed resources. The dividend is being maintained at 124 per cent.- 2s. 6d. per share on the £1 ordinary shares which at 62s. 6d. xd. yield around 4 per cent.
Herrburger Brooks Limited. The accounts to June 30, 1959, were disappointing. Profits have been affected by restrictions imposed on overseas markets, and the hopes of expansion in the home market did not materialise. However, the chair- man, Mr. C. W. P. Hughes, states that the current financial year has shown some improvement and he views the immediate future with confidence, but has been prudent in reducing the dividend to 10 per cent. It is reasonable to expect an increas- ing demand for British pianos which have a high reputation abroad and for which this company manufactures actions and keys. The net profit amounted to £22,524. The 10 per-cent. dividend, i.e., 1 s. per 10s. ordinary share, absorbs a net amount of £9,264. The 10s. ordinary shares at 13s. 9d. yield 7.4 per cent. and are worth retaining.
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