Company Notes
By LOTHBURY
PPeachey Property, as a developer and holder of residential property, has in the past been extremely successful. The policy of the board under its chairman, Mr. C. W. Farrow, is to equalise, over the years, its interests in com- mercial properties with its residential holding.
The former were shown in the last balance sheet at £6.1 million against a total property portfolio of £20.2 million. Last year dealing profits jumped by 70 per cent. and accounted for 23 per cent. of total profits, but rents increased by 8+ per cent. and this latter source of income should continue to increase over the years as leases fall in and as further residential and commercial properties are acquired. Taking a long view, Peachey should certainly benefit from its work- ing with railway sites in the Midland (Northern) Region. The company enjoys considerable finan- cial backing from the London Assurance. The 5s. shares at 15s. give a generous yield of 6 per cent. on the last dividend of 18 per cent. A good in- come share with scope for appreciation.
This is the time of year when Building Societies report their results. Here are just a few of them.
The great Halifax last year made new ad- vances of £80 million against £68 million in 1961; this increased lending was, of course, made pos- sible by larger subscriptions from investors, which moved up from £82 million to £108 million. Withdrawals at 50 per cent. were at a very love ratio.
Cheltenham and Gloucester can be particu- larly proud of its advances. At £7.6 million these were a record, the previous one being £6.1 million in 1959. ' fo The Principality also created a new record in lendings at £1.888 million, the number of bor- rowers having increased from 795 to 1,135, but the average amount of each new loan has fallen from £1,770 to £1,663.
The Woolwich Equitable makes up its ac- counts to September 30 and reports since the close of its financial year that no less than £10.494 million was advanced in the last quarter of the year. Advances are now being completed at the rate of £40 million per annum. Share and de- posit receipts jumped during the year from £351 million in 1961 to £451 million in 1962.
Northampton Town and Country reports a record rate of expansion. Assets have risen by 13+ per cent. to a peak of £55.894 million. Nearly 14,500 new investors joined the society, which enabled it to increase its advances last year by £12 million, which went some way to satisfy the increasing demand for mortgages.
At last the Building Societies' Association has recommended its members to reduce their lend- ing rate from 61 per cent. to 6 per cent. Prior to this declaration, the Leicester Temperance announced (before the reduction of the Bank rate to 4 per cent.) that its new lending rate would be 6 per cent. from January 1.
The Alliance once again reports a vigorous ex- pansion for 1962—as much as 16 per cent. The interim report discloses increases in the balance sheet total, also in cash and trustee securities, up to 31 per cent. at £15.4 million and an in- crease of 13 per cent. in mortgage balances. This society believes in lending its money on an in- creasing scale and last year attracted £22 million from investors, which is a rise of nearly 50 per cent. over the previous year.
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