Company Notes
By LOTHBURY
ANOTHER new record profit has been made by H. M. Hobson, manufacturers of aircraft components for the year ended September 30, 1963. The trading profit has improved from £1.065 million to £1.131 million and the net profit from £352,000 to £391,000. The directors' state- ment is encouraging as to the increase in produc- tion facilities to meet the anticipated demand and a very satisfactory order book. Mr. T. Simpson, the chairman, will no doubt have something more to say about this at the forthcoming annual general meeting. This company has, over the past
few years, a consistently good profit record and in 1962 increased the dividend from 12 percent to 131 per cent; for 1963 it has been raised to 14; per cent. The 5s. shares are fairly valued at 155.
Shareholders of Shep Investments have every reason to be grateful to their board of directors under the chairmanship of Sir Andrew H. Rowell and his able •managing director, Mr. Francis Winham. The annual report discloses very little, but doubtless the chairman will be more expan- sive at the annual meeting. The company not only owns shop properties but also commercial and residential estates. Most of them are rent- bearing and all of them are held for dealing and investment. For the year to June 30, 1963, the trading profit rose by £20,000 to £177,000 but a higher tax charge brought the net profit down from £186,000 to £176,000. The increased dividend of 20 per cent is covered by earnings of 28 per cent and a 20 per cent dividend is now forecast after the proposed one-for-ten scrip issue. At 22s. the 5s. shares yield 4.8 per cent.
Over the past seven years Atlas Stores has shoWn persistent growth and has raised its divi- dend every year to the present level of 22 per
ant for the year ended October 31, 1963. In spite of last year's hard winter, the chairman, Mr. Bernard Davis, is able to report a 10 per cent increase in net profits at £113,000. The com- pany has embarked on heavy capital expendi- ture which had paid off and is now in need of extra capital. It is, therefore, proposed to raise about £300,000 by a rights issue, of which the terms will be announced later. The chairman states that it should be possible to maintain the present dividend on the larger capital. This should not be difficult, having regard to the con- tinual growth of the road building and construc- tion industries. The 5s. shares at 32s. 9d. yield only 3.3 per cent, which looks fully justified on the excellent cover and growth prospects.
Aveling - Barford, as manufacturers of machinery for road-making and building machinery, should continue to benefit from the ever-increasing activity in the industries which it covers. The chairman, Mr. Edward Barford, re- ports favourably on the outlook and points out that the company is not only benefiting from larger orders at home, but also from the com- pany's substantial export trade. For the year to September 30, 1963, the trading profit in- creased and the net profit rose from £335,000 to £415,000. The dividend, twice covered by earn- ings, was held at 14 per cent. The bank overdraft has been practically extinguished by the recent issue of £2 million of Convertible Debenture stock. The 5s. shares at 14s. 3d., yielding 5 per cent, are an excellent investment.
Sir Richard Burbidge, chairman of British Home Stores, has just announced increased trad- ing profits, up £500,000 to £3.279 million, for 1963. This is a record figure. The dividend is in- creased from. 13.3 per cent to 15 per cent with a final payment of 7d. against 6d. The 5s. shares improved to 20s. 6d., yielding 4.8 per cent. The chairman's report is awaited, with interest.
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