Company Notes
R. K. S. PEACOCK, chairman of Guest, Keen and Nettlefolds, implies from his report for 1961, that as regards the steel side of its business, the company expects to be work- ing below capacity for some time to come. This has necessitated the cancellation of a number of schemes, but even so as much as £20 million was spent on capital account last year and similar amounts are planned for 1962 and 1963, from the company's own resources. Pre-tax profits fell from £30.83 million to £22.25 million. The engineering section contributed 531 per cent. of the total turnover and here the outlook is more. encouraging than for the steel section, which, with a loss of £2.6 million from John Lysaght (Australia), pulled profits down. Earnings for the maintained 16 per cent. dividend have fallen from 53.8 per cent. to 33.9 per cent. The £1 shares, as high as 110s. in 1961, are now 67s. 6d., yielding 4.7 per cent. on the gross divi- dend of 3s. 2d. per share. A long-term view will have to be taken before these shares regain their former high price.
Mr. H. F. Oppenheimer, chairman of The Anglo American Corporation of South Africa, gives shareholders some encouragement for the future, as he sees an improvement in the South African economy over the past twelve months. His survey of the group's affairs, which ap- peared in last week's issue, is of great value to those with gold share interests in South Africa. It is particularly encouraging to know that, in spite of being cut off from the capital markets abroad, the Corporation has made the best uses of its own resources, which are con- siderable. The group's net profit for 1961 rose by 7,8 per cent. to R.16,914,211, which is two and a half times the profit earned in 1952. The chairman believes that if all people living in South Africa are consciously and deliberately en- couraged to participate in the growth of the country to the fullest extent, then it will become a great country. For those investors having faith in its future the 10s. shares at 170s. yield 5.3 per cent. on the dividend of 9s. per share.
Mr. Frank Fox, chairman of F. Francis and Sons (Holdings) Ltd., is disappointed that the group's profits for 1961 are a little down on the previous year. Turnover was up, but pres- sure on profit margins resulted in a trading profit of £642,671, against £653,683, The group covers a wide range of activities, including Keighley Lifts, on which large sums are being spent for development. RDM Closures made an in- creased profit. Laminoid Products, in the packaging business, has contributed to profits. The dividend of 23 per cent. has been main- tained from earnings of 41.2 per cent., so that the 5s. shares, now at their lowest price this year, yield 8.4 per cent., a fair return for this type of shdre, with some scope for appreciation.
Mr. H. Scott Thompson, chairman of Mount Charlotte Investments, the catering company, reports to shareholders for a period of eighteen months to December 31, 1961. During that period the company took over Nuthalls (Caterers) and purchased the remaining .25 per cent. of Bettafoods. The issued capital, £285,734 in the last accounts, is now £1,029,654; consequently no strict comparison can be made between the past and present accounts. The group net profit after tax amounted to £128,570. The company, by the recent acquisition of Nuthalls, has greatly increased its turnover and expects by 1963 to reap the benefit of the recent acquisitions and improvements now being made to various properties. The chairman expects to be able to Maintain the dividend of 12 per cent. for the cur- rent year, in which case the 2s. 'A' shares at 4s., yielding 6 per cent., appear to have prospects.
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