COMPANY NOTES
rrttE chairman of Coast Lines, Captain A. R. S. I Nutting, advises that results for the first half of the current year do not show an improvement in general trading, but that rates have been in- creased to meet rising costs. However, the results for the year ending December 31, 1958, can be considered very satisfactory. The group net profit was £470,021 against £484,594 and the dividend is maintained at 10 per cent., which is covered 3.1 times by earnings. From the balance sheet liquid assets appear to be around £1,500,000 from which an amount, maybe of £500,000, has been spent on the recent purchase of Northern Ireland. Trailers for cash. This undoubtedly will prove a valuable investment as it is known that the company's cross-Channel trade on trailers has been increasing and in fact certain vessels have been adapted for the exclusive pur- pose of carrying this type of traffic. These craft are now under separate management and a newly formed company known as Link Lines. The £1 ordinary stock units at 26s. 6d. return 7.5 per cent.
Eastwoods have produced encouraging results to March 31, 1959, with trading profits up by 11 per cent., and it is reasonable to' suppose, with the greatly increased demand for bricks and cement, that the current year's figures will show an even larger percentage increase. The net profit increased from £183,369 to £286,990 and this was after allowing for a non-recurring item of £60,000 for the major overhaul of a cement kiln. Present prosperity in the building trade will undoubtedly help this company, and the chairman, Lieutenant- Colonel Sir Thomas Moore, has wisely refrained from increasing the dividend, but has maintained it at 15 per cent. This is now covered 11 times. The £1 stock units at 59s. yield 5.2 per cent.
Another record has been achieved by Pasolds with profits of £608,200 (before tax), a 30 per cent. increase for the year ended March 31, 1959. The company specialises in the manufacture of children's clothes under the well-known trade name of 'Ladybird.' It is very successfully man- aged and enjoys a large export trade for which further expansion is planned. The capital consists of £300,000 in 5s. ordinary 'A' shares and £250,000 in 5s. ordinary 'B' shares; the latter are held by the family controlling the business. The dividend on the 'A' shares has been increased from 18 to 24
Limited, has presented shareholders with an ese, a/4 lent report for the year ending March 31, l9' The trading profit for the group was up fro £243,559 to £519,722, leaving a net profit £232,604 against £53,194. This turn-around of th company's trade is no doubt due to the easing c hire-purchase restrictions last year which enabled them to increase their sales of furnito radio and television. The reserve for unmatur profit on HP contracts is considerable, a amounts to £1,466,956, which of course will vl into profits as the outstanding accounts are e lected. The chairman advises that they are c° stantly looking for new businesses and since end of the financial year have acquired are! HP group established over seventy years, wb certainly should prove remunerative. The divid on the 5s. ordinary shares amounts to 16 per a plus a capital distribution of 5 per cent. tax ire It is intended to pay an interim dividend of If), cent. against 21 per cent. for the current-year. ' 5s. 'A' ordinary shares at 23s. 9d. return 3.4 cent. excluding the bonus. For the year to September 30, 1959, the 0 Group has declared an interim dividend of per cent., and in view of the improved Vac° it is hoped to pay a final dividend of 10 cent. A rights issue has been made of one for 6 ordinary units at 13s. each, but these new shat will not qualify for the interim dividend just Glared. It is known that the company, has recent, made certain acquisitions which should be profit able. The 5s. ordinary shares look attractive 15s. 71d. xr to yield around 5 per cent. cn forecast dividend of 16 per cent. per cent.; this is covered over 51 times and even' the 'B' shareholders convert their shares into shares, which they have a right to do after ne,' March, the cover for the present dividend wool be no less than 3+ times. Although the 'A! shat` at around 46s. have more than doubled their p" over the last twelve months (see these notes, Se tember 12, 1958) yielding as little as 3 per cell' this price indicates the market confidence in l continual growth of this company. It is propos to issue 2,200,000 5s. 'A' ordinary shares to , Ct and 'B' ordinary holders in the rate of one new for every 'A' or `13' ordinary share now held. !eh Mr. H. Amelan, chairman of Loyds Rear ls bt
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