Company Notes
9" HIS is the time of the year when the big I home banks report their results for 1961. Martins Bank is the first, as usual, to report. Net profits have risen by 2 per cent. to £1.45 million; this figure, of course, is struck after making provision for inner reserves, bad and doubtful debts and other contingencies. Martins has a 20 per cent. interest in Mercantile Credit, which maintained its interim dividend, but re- duced its final from 7+ per cent. to 2+ per cent. The final dividend of 8 per cent., making 15 per cent. as expected, gives Martins 5s. shares at 23s. a yield of 3.2 per cent. which is a little more than the other banks return.
The next announcement comes from Barclays. Bank, which produced a considerably better profit increase. After allowing for the usual un- known transfers to inner reserves, the net profit was 11.4 per cent. up at £6,074,000, which al- though satisfactory is about a third lower than the previous year's big rise. Barclays £1 shares at 89s. 3d. on the forecast final dividend payment of 6+ per cent., making 13 per cent. (equals 2s. 3d.), yield 2.9 per cent.
The year to August 31, 1961, was a record one for Montague Burton in more than one way. Pre-tax profits hit a peak of £4.085 million. Fixed assets were £4 million higher at £20.08 million after continuous heavy capital expenditure from the company's own resources. The long-awaited revaluation of the company's properties threw up a surplus of nearly £33 million, which has made possible a three-for-one bonus in 'A' shares for the ordinary and 'A' ordinary shareholders. The company has heavily increased its overdraft, but plans are going ahead for funding this by raising permanent capital. The chairman, Mr. Lionel Jacobson, has steered this company of multiple tailors to great success, and is, it is be- lieved, making plans to break into the European market if this country joins the EEC. The 10s. ordinary have had a big rise since last year, but are by no means at their zenith at 102s. 9d. to yield 2.9 per cent. on the 271 per cent. (equals 2s. 9d.) dividend. Their net asset value is 108s.
Last year the Government and General Invest- ment Trust raised fresh capital by a rights issue and has since increased its income by as much as 19 per cent. for the year ended November 30, 1961. This is an excellent result, having regard to the fact that nearly 20 per cent. of its port- folio is in fixed-interest stocks. Other interests include 17 per cent. in investment trusts and 12 per cent. in tramways and omnibuses. The income of £130,191 provides an excellent earn- ings cover of 23.8 per cent. for the maintained dividend of 15 per cent. The 5s. shares (asset value 18s. 9d.) at 15s. 9d. give a very good return of 4.8 per cent.
In spite of keen competition from other forms of saving during 1961, the Principality Build- ing Society of Cardiff did very well to increase its assets by £687,483 to £10,005,455. Liquid funds in relation to total assets are at the high rate of 141 per cent. Advances fell a little on 1960 figures, in spite of the ever-increasing de- mand for mortgages, so that there was a small increase in deposits and shareholders' funds. The society ranks for trustee status.
At a recent press conference Sir Thomas Spencer, chairman of the Woolwich Equitable Building Society, had some interesting comments to make on the exceptionally high demand that now exists for mortgage accommodation. He mentioned that mortgage advances for the twelve months ended September 30, 1961, amounted to £2 million more than last year at a record of £36.6 million. During the past year his society had granted no fewer than 19,330 separate ad- vances. He was of the opinion that if the liquid- ity ratio of all societies was lowered by two points from the present 15 per cent., an additional £60 million could be released for mortgage lend- ing. This is a point that could be seriously con- sidered by the Building Societies Association and would, if adopted, materially assist those house- holders who wish to be owner-occupiers.
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