COMPANY NOTES
SINCE the close of the accounts for Kepong (Malay) Rubber Estates on December 31, 1958, the company has suffered the loss of its chairman, Mr. T. J. Cumming. The new chairman, Mr. L. I. Simpson, reports hopefully for the future and states that a further 1,401 acres of rubber are being replanted in Nigeria. The group's total rubber crop was 10,143,500 lb., an increase on the previous year. It is interesting to learn that outside the Malayan estates, the company has large investments in other countries which, in a few years' time, will be revenue-producing and will add considerably to the company's profits. Because of this diversification of interests, it is intended to change the name of the company to Kepong (Holdings) Ltd. The major part of the company's crop is sold in the form of latex, under the trade name of Lacentex. Last year the com- pany acquired the Buntar Rubber Estates. The group trading profit amounted to 412,384, pro- ducing a net profit, after tax, of £193,654. Last year the capital was increased by a one-for-three scrip issue, but the dividend is maintained at 20 per cent. on the increased capital, so that the 2s. ordinary shares at 3s. yield 13.35 per cent.
In May, 1958, H. A. Saunders, distributors of Austin cars and commercial vehicles, made an offer to the public of 2,200,000 2s, ordinary shares at 2s. 6d., since when the profits earned for the year to March 31, 1959, have exceeded those forecast and constitute a record. Trading profits were up from £275,287 to £311,327 and the net profit from £101,946 to £115,949. The balance sheet, which is strong, does not reflect the recent issue of shares which produced an amount of £123,000. The company has been able to acquire Allen Motors (Cheltenham), partly satisfied by a cash payment of £39,000, and has also reduced its bank overdraft from £171,115 to £118,302. The chairman forecasts that this year's figures should be as good as last year's, as trading profits for the first five months of 1959 are very satisfactory. The dividend of 10 per cent. has been declared on the smaller capital, now increased to £480,000 by a scrip issue; it appears to be covered at least four times by present earnings. The 2s. ordinary shares at 4s. are therefore giving a fair yield of 5 per cent.
English Stockings will, it is believed, shortly be changing its name as the nature of the com- pany's business has now been altered. In March, 1958, the company purchased the capital of Frank H. Ayling for £600,000. This company con- trols various subsidiaries. The company's year end has been changed to March 31, 1959, and the accounts cover a period of fifteen months. This has been a beneficial change as profits have risen enormously from £22,447 to a record of £93,683. After tax the net profit was £40,687 higher at £53,652. The capital has now been increased to £629,440 on which a dividend of 10 per cent. has been declared. The 2.s. ordinary shares at 3s. 6d. yield 5.7 per cent.
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