Company Notes
By LO I 11 It I. R Y
ON February 25 Custos commented on the results of Imperial Chemical Industries, the largest chemical company in the UK. The very full report from Sir Paul Chambers, the chair- man, discloses that the demand for man-made fibres continues to increase rapidly, and it is in this textile section that plans have been made to take care of the long-term expansion in which the chairman has confidence. The heavy chemi- cals division is fully employed in catering for so many demands from industry, such as chlorine, vinyl chloride, salt and petroleum products. Last year saw a further large expansion of the group's overseas interests. The company now has a heavy programme of capital expansion ahead and with a downward trend of profit margins in 1965 the shares have followed this movement. At 42s. 6d. the £1 shares yielding 5.9 per cent seem fairly valued.
Last September the chairman of Cambridge Instrument, Mr E. D. Barlow, advised of the complete reorganisation of the company, which is continuing. This should be fully effective in another six months, after which both profits and output should rapidly increase. Results for 1965 with pre-tax profits at £449,395 compare with £374,244 for 1964. Those for the current year should be better. The new scanning electron microscope is proving a great success and plans are in hand for increasing production. Last year, exports amounted to 23 per cent of the group's turnover. The 5s. shares have now reached a new high of 23s. 3d. yielding 4.7 per cent on the re- peated dividend of 22 per cent. This obviously discounts the immediate future, but as a long- term investment the shares are interesting.
In spite of increased sales last year, Aristoc, the hosiery manufacturers, was not able to hold its profit margins. Consequently pre-tax profits fell from £860,770 to £750,197, but the net profit improved from £379,674 to £441,338 from which the same-again dividend of 30 per cent is paid. The new venture in children's wear has not yet contributed to profits. The company is well able to pay, from its own resources, for new machinery for the production of seamless stockings which account for 74 per cent of the total output. The chairman, Mr H. E. Williams, is cautious about the future, but the 4s. shares at 15s. 9d. yielding 7.8 per cent are worth holding.
An increase in assets of £135,821,383 (17.1 per cent) of our largest building society, the Halifax, brings its total assets to £927,891,560. The amount advanced on mortgages rose by £7,636,957, which represents a 1-in-10 advance on all houses built in the UK for private owners. This large society is contributing more than any other to the needs of the hungry buyers of house property and thereby maintains its reputation as the most pro- gressive of them all.
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