Company Notes
By LOTHBUR VERMIING went right for British Sugar Cor- Emoration during the year ended March 31, 1965. The company was free from profit and divi- dend control and benefited from the incentive agreement to the extent of about £530,000. How- ever, the company is now paying more than 6 per cent, as forecast. The current year's sugar-beet crop is expected to be very large, but possibly the profits will not come up to those of the past year. It should be remembered that the 6 per cent divi- dend was covered four times by earnings. The £1 shares at 22s., yielding 5f per cent, are an attractive investment. An interim dividend is expected early in the current year.
The report by Mr. Julian Hodge, chairman of Anglo Auto Finance, for the year ended October 31, 1965, is full in its details to share- holders. The following notes are worth pin- pointing: (1) issued share capital and group reserves now total £8,699,000; (2) the ratio of issued share capital and reserves to its borrow- ing is 1 to 2.8; this is lower than that of any other comparable hire-purchase company; (3) de- posits during the past financial year increased from £7,800,000 to £14,300,000. The final divi- dend of 71 per cent reduces the total from 35 per cent to 25 per cent. No doubt the company has considerable growth ahead, but with the con- tinuance of high money rates and corporation tax, this lower rate of dividend may be in some jeopardy. The Is. shares at 3s. 3d. yield 7.7 per cent.
H. M. Hobson, manufacturers of aircraft com- ponents and power-control equipment, turned in profits for the year ended March 31, 1965, of £1,037,113 against £978,234 and has paid a divi- dend of 17 per cent against 16 per cent. Hobson is, of course, at the mercy of government planners regarding the aircraft industry, but has a growing overseas business and has cleverly made good its order-book losses from the can- cellation of TSR 2 and HS 681 orders. Over the past ten years the company has built up assets in the ratio of 5f to 1 to liabilities-a very strong position. The 5s. shares have recently been an active market up to 19s. on takeover rumours, and the shares should on this account, as well as the company's financial strength, still be held, although the income yield is only 4.2 per cent.
Sir Clayton Russon, chairman of R. and G. Cuthbert, seed merchants, is justly proud of his
company's profits for the year ended June 30, 1965. These were a record, with a pre-tax profit of £138,880 against £105,018; in fact, profits have increased by 60 per cent over the past two years. Owing to the change in the tax laws, the directors have prudently decided not to increase the dividend, but maintain it at 20 per cent. They have it in mind to make a share bonus later this year. Cuthbert's was founded in 1797 and has been noted for the past thirty years for its 'Weekly Garden Talk' on the front page of Saturday's issue of The Times. Last year the mail-order department executed 600,000 orders from gardeners. Seeds and fertilisers are obtain- able through the multiple stores, including Wool- worth's. The chairman is confident for the future. The 2s. shares at 7s. 6d., yielding 5.3 per cent, should be retained.
The chairman of Roy King Properties expects his forecast of pre-tax profits of £115,000, made in October, to be exceeded for the year ending March 31, 1966. Last year's final dividend of 9f per cent made a total of 15+ per cent. If corporation tax is fixed at 40 per cent, then, in the chairman's opinion, this will wipe out the expected increase in rental income. However, as long as Mr. Roy King is in the chair, I expect the company will continue to expand its profits. Additional finance of £150,000 has just been raised to reduce the bank overdraft and pro- vide for the current development programme. The 4s. shares are now 13s.
Previous page
