11 DECEMBER 1964, Page 22

Company Notes


ANGLO AUTO FINANCE, the South Wales h.p. company, a member of the Julian S. Hodge empire, has recently announced very satisfactory' figures for the year ended October 31, 1964. Pre, tax profits are up from £804,000 to £1.25 million. an increase of 55 per cent. A final dividend 01 174 per cent follows the interim of the same amount, making a total (as forecast) of 35 per cent, covered 1.7 times by earnings. On the face of it these may not look enough in view of the forthcoming corporation profits tax, but Anglo Auto's continuing growth should take care of this angle. Furthermore, the outlook is so favourable that earnings could easily increase and allow 3 higher rate of dividend, say 50 per cent. There' fore the Is. ordinary shares at 6s. now yielding 5.8 per cent should prove a sound investment.

Phillips Furnishing stores has made steady ex' pansion during the year ending August 31, 1964- Pre-tax profits for that year jumped to £112,746 as against only £16,904 for the previous year. The chairman is confident that further progress will be made in the current year. Last year the com- pany paid a dividend of 6 per cent which was not earned, but this time a dividend of 7{ per cent is covered by earnings of 12.4 per cent, which is a slender margin having regard to the proposed corporation profits tax. Everything points to a higher dividend, but the overdraft of nearly £1 million will have to be reduced before share- holders can look forward to this.

Jessups (Holdings) has substantially increased its trading profit for the year ended August 31, 1964, from £88,512 to £112,957 and has increased the dividend by -1 per cent to 15 per cent. As Vauxhall Bedford main dealers and automobile engineers, the company has a progressive profit record. The subsidiary, Super Line Bodies, has a full order book and it is natural with the present booming motor-car, industry that the chairman is optimistic for the future. But this type of industry is subjectjo decreasing profit margins which may, in the future, affect the two-fold cover for the dividend. This suggests that the 2s. ordinary shares at 4s. 3d. yielding 7 per cent may be high enough at present.

Pillar Holdings reports excellent profits for the year ended July 31, 1964, of £860,425, which in- clude for the first time results from Grafton In- dustrial and Mellowes. A third of the above figure is provided by dividends from this company as manufacturers and processors of aluminium pro- ducts, jointly owned by Pillar and Venesta. This is a very promising concern, but by the end of next year if Venesta exercises its option to take a 50-50 interest in Indal, then Pillar's income from that source will decrease and that company will have additional interest charges to meet on bank overdrafts and loan stock. However, over the past three years there has been a tenfold expansion in profits and the future looks as if this should continue, but possibly not at the same pace. The 2s. shares at 15s. on the 30 per cent dividend yield 4 per cent.