COMPANY NOTES
THE steady appreciation since the beginning of this year in the price of the 'Blue Circle' cement shares has been justified by the results recently published for 1958. Associated Portland Cement are to pay a total ordinary dividend of 12 per cent. against 9 per cent.; the £1 ordinary shares have risen from 49s. 9d. to 66s. xd. British Portland Cement (controlled by APC) are to pay 10 per cent. against 71 per cent.; the £1 ordinary shares show a rise from 36s. to 48s. 6d. xd. For both companies a 25 per cent, scrip issue is pro- posed. The trading surplus of the parent company, APC, was down from £5.55 million to £4.35 mil- lion, that for 13PC was. up from £3.85 million to £4.31 million; whilst Alpha Cement (a wholly- owned subsidiary) showed a slight increase from £1.14 million to £1.15 million, resulting in a group trading surplus of £15,069,644 against £14,627,419, the net profit (after tax) being £5,947,742. The chairman gives the customary warning that it should not be assumed that the dividend for 1959 will be any greater than that for 1958; but the long-term investor is looking for a further increase in dividends to keep pace with the undoubted expansion that can be expected in the cement industry, otherwise .APC's present yield of only 3.7 per cent. would not be acceptable. It should be remembered that the 10 per cent. dividend paid was covered by earnings of 41.7 per cent.
F. Francis & Sons (Holdings) expanded during 1958' by acquiring two subsidiary companies, Saga r-R ichards -a die-casting business-and Glasgow Engineers. These acquisitions have neces- sitated a major internal reorganisation which will concentrate production and reduce costs. The parent company's capital has been increased and consequently the dividend of 20 per cent. (the same for the past four years) absorbs £83,869 against £71,012. Group trading profits were a little lower but the net profit is up at £162,170, which includes £18,951 of pre-acquisition profits of a subsidiary. The chairman, Mr. Frank Fox, reports that group sales for the first four months of this year were 39 per cent, higher and that the reorganisation plans are now beginning to bear fruit. The interim dividend for this year is to be increased but share- holders should not expect more than 20 per cent. for the current year. With patience shareholders should see a better price than 17s. 3d. xd. for their 5s. ordinary shares, now yielding 5.7 per cent.
Brewery shares are very much in the limelight today and Threlfalls Brewery have made their mark once again in giving shareholders the expected 1 per cent. annual increase for the sixth successive year. The dividend for the year ended March 31, 1959, is 22 per cent. Earnings have improved from 29.7 per cent, to 34.9 per cent. Threlfalls operate in the Lancashire and Cheshire area and when it is remembered that Merseyside has a higher percentage of unemployment than in many parts of the country, the past year's profits are more noteworthy. These have probably been derived mostly from the hotel side of the business, as the group opened a number of new hotels last year. Net profit after tax was £445,586 against £386,814. The chairman's remarks as to future prospects will be awaited with interest at the forthcoming annual meeting. The £1 ordinary shares at 74s. appear cheap to yield 5.9 per cent., for this is a good return on a share with a progressive profit record and seemingly a promis- ing future.
The satisfactory results reported by Surmah Valley Tea Company for 1958 were due to the larger crop harvested. This amounted to 1,689,772 lb., an increase of 407,653 lb., realising an average price of 35.79 annas compared with 33.13 annas for 1957 at the Chiltagons auctions. The trading profit showed a very healthy increase at £67,208 (against £23,663), of which £44,500 is absorbed by taxation (against £15,500). This has enabled the directors to recommend an increased dividend of 35 per cent. (less tax at 7s. 9d. in the £) costing £21,438, and carry forward £18,662. The chair- man, Mr. C. W. Miles, finds it difficult to forecast results for 1959, but for various reasons anticipates that expenditure will increase still further. The 5s. ordinary shares last changed hands at 5s. 9d.
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