Company Notes
By LOTHBURY
OVERALL crude and product sales of British Petroleum during 1963 improved by 7.7 I3er cent and with operating costs up by only 5 7 per cent, the group net income was up by 17.5 per ceri. This is a very satisfactory result from which shareholders are benefiting by way of a one-for-five scrip issue and the increased capital ranking for the final dividend maintained at 6.6 per cent tax free. There is also to be a
free distribution of 4d. per share from capital reserves. The chairman, Sir Maurice Et
-ridgeman, in his annual report gives share- holders a comprehensive survey of the company's complex business. As mentioned by Custos in our issue of April 17, the £1 shares at 68s. 6d. are a good buy; on the assumed scaled-down dividend of 10 per cent tax free, the yield would be a generous 6.7 per cent covered 2.6 times by earnings.
s' Associated Fisheries, who own the largest 1-,;ulig fleets in Europe, made lower pre-tax Profits for the year ended September 30, 1963, of £776,000 against £1.053 millions previously, but up to date there has been a marked improve- Ment over the corresponding period of the pre- ceding year. The sale of the Eskimo Group for £3 million has brought the company £1 mil- " in cash; the balance will be paid with in- terest at 61 per cent over the next five years. The cinmPany has ancillary interests in fish merchant- ng and frozen foods. The dividend is maintained 11 26 Per cent, plus a 5 per cent bonus. In view sr the fact that part of the convertible stock due for conversion into ordinary this month. the 55. shares at 24s. 6d. yielding 5.2 per cent °01( fairly priced. Sir Hugh Fraser, Bt. is chair- or the company. Sir John Campbell, chairman of Development :hecurities, considers that the fall in profits over e last two years has now been halted. The (('11113any's greatest asset is the Dorchester Hotel, ad this, us, from time to time, has given the shares speculative flavour on the possibility of this sset being sold. Other interests include Edger linlvestrnents and a Canadian paper mill in which t)e Company has invested £181,000; this will be itiperating in 1965. Further income should accrue c .1965 from the £300,000 interest in the n-blehester Marina Scheme. The 10s. shares have ;tiletuated during 1963-64 between 77s. 6d. and 0 s' They are now 57s. yielding 1.7 per cent is the 10 per cent dividend, but this payment covered 4.3 times by earnings. At this level the shares have a speculative attraction. i. 3rerie, manufacturers of fire-fighting equip- "Lilt and motor-ear bumpers, has celebrated its
jubilee year by raising the dividend from 25 per cent to 30 per cent, a rate last paid in 1960. A one-for-one scrip issue is also proposed. Pre- tax profits have risen from £535,000 to £680,000. The demand from the bumper division due to the booming motor-car industry enabled the company to reopen its Cardiff factory, and this should contribute to profits during the current year. The company has recently taken a factory at Feltham to cater for its various other interests including airfield crash trucks and foam equip- ment for the oil industry. The favourable out- look suggests that the 5s. shares, now 32s. to yield 4.7 per cent, should prove a good invest- ment.
John Dickinson, the paper-makers and manu- facturing stationers, have increased their pre-tax profits for 1963 from £4.922 million to £5.288 million. The final dividend is maintained (as forecast) at Is. per 5s. share, following the doubled interim, making a total of 30 per cent against 25 per cent. The net profit after tax is up from £2.448 million to £2.586 million. The Ss. shares at 43s. 6d., not far off their high point of the year, yield 3.4 per cent, which seems a fair return from this fine company on its past performance and future prospects.
Brooke Bond, the well-known tea manufac- turers and growers, seldom fail to report ex- panding profits. The interim dividend of 2.5 per cent tax-free is being maintained for the year ending June 30, 1963, on the capital increased by a one-for-four scrip issue. Pre-tax profits are up by 18.6 per cent for the first six months of the current year. As the directors hope to main- tain the final dividend at 5 per cent tax-free, this still makes the 5s. 'B' shares at 13s. 41d., yield- ing 5 per cent, an attractive investment. The dividend of 7.5 per cent tax-free was last covered three times by earnings.
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