11 MAY 1962, Page 29

Company Notes

The preliminary. figures from r W. H. Smith (Holdings),. for the year to January 30, 1962, cheered the market. Pre-tax profits were 20 per cent. higher, which suggests that the heavy capital expenditure made during the past four years on modernising the company's warehouses and stores is now paying off. In fact, these profits at: £2.1 million allow for a higher depreciation charge. The tax. charge is. also up at 56 per cent. The results certainly justify the step up of 1 per cent. in the dividend to 13 per cent., which is covered by earnings of about 26 per cent. It certainly seems that the company's decision this time last year to close their lending libraries was a wise one. There now seems to be hope for a gradual expansion in business and divi- dends. The £1 'A' ordinary shares responded to the good results by moving up from Ils. 3d. to 78s., at which price they yield 3.3 per cent.

Since The Hampton Property Group was made public in March, 1960, it has expanded rapidly. At that time freehold and leasehold properties stood in the balance sheet at £753,000; they now figure at £1.14 million. This figure is ex- pected to Teach £3 million by mid-1963, says the chairman, Mr. R. C. 'Bampton. The com- pany specialises in the .development of super- markets and retail stores; the former now repre- sent thirteen revenue-producing properties, nine under construction and ten sites purchase. Since the aceognts (made up to December 31, 1961), a, further, liver sites ' have litieh 1 aeghlred. for do. . velopment, at a cost of £57,550. Past progress has been financed by rights issues of shares and loan capital. There will be further issues of this nature to finance future development plans, of which the chairman (as, in the past) will keep shareholders fully informed. The £1 shares have recently been an active market and have risen to 47s. 6d. on the 8 per cent. dividend; 10 per cent. is forecast for 1963.

Anglo Auto Finance, a subsidiary of 'Mr. Julian Hodge's Gwent and West of England Enterprises, gives shareholders a pointer for the current year ending October 31, 1962, by de- claring an interim dividend of 17i per cent. Last year two interims totalling 15 per cent. were paid. Since then there have been a four-for-one rights issue and a one-for-ten scrip issue. Pre- tax profits in the current year are expected to be substantially higher than in the previous year, when the total dividend was 33.8 per cent. A 20 per cent. final dividend now looks a distinct possibility, plus another one-for-ten scrip issue. The ls. shares are a good market at 12s. 3d.

The Prudential Assurance Co. increased its in- vestments during 1961 by as much as £74.4 million, largely in property, mortgage loans and ordinary shares. Total underwriting profits fell sharply in 1961, but were partly offset by interest earnings in the general branch fund. The chair- man, Sir Frank Morgan, states that had it not been for the Chancellor's request for dividend restraint, there could have been a small increase in the payment on the 'A' shares. The 4s. 'A' shares and the 5s. 'W shares have always proved excellent investments and will continue to be outstanding investments for the future.