20 MARCH 1964, Page 35

Company Notes

y LOTiiBURY A GooD r-covery in profits for the year ended

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September ,•.30, 1963, is reported from Lindustries, the group whose interests are in textiles, fabrics, engineering and overseas. I he trading profit jumped from £1.076 million to iI.468 million and the net profit from £262,056 to £500,122. The dividend is up from 10 per cent to 12 per cent. The increase in profits has come from the engineering interests, helped by the motor-car boom, and from the overseas textiles group. Recent acquisitions of Blackstaff Flax Spinning and Weaving (for £L's million in cash) and Doagh Spinning will contribute to future profits. Theigroup now has halt i:s capital invested in the. textile industry, but it is not the most profitable. Overseas interests ,•o■ or the Canadian marine hardware business and trade investments in SOuth Africa and Australia. The liquid resources have been strengthened by last year's Issue of a £2 million debenture. The El ordinary shares at 34s., yielding 7 per vent, are, having regard to the doubtful textile interests, somewhat speculative. but the engineering side will sec them through the next twelve months.

Over the past: three years Gwent and West of Englund Emerprjses, under the chairmanship of Mr. Julian Hodge, has made amazing progress, which has come about by the rapid growth of the main subsidiary, Anglo-Auto Finance, and other industrial 'acquisitions. The trading profit for the year ended October 31, 1963, of £3,078 million compares with £1,875 million previously. I he dividend is increased from 68.2 per cent to 80 per cent and a one-for-one scrip issue is now proposed. On the doubled capital, the chairman Is forecasting a 50 per cent dividend' for the current year, giving a prospective dividend yield 01 6.1 per cent at today's price of 15s. 9d. for the Is. shares. Further scrip and rights issues can be expected. Mr. Hodge has a very large holding of deferred with conversion rights into ordinary shares, which makes long-term forecasting for dividends difficult.

Britannic Assurance has once again. by reason of good profits from the ordinary and industrial life branches, increased its profits by 5.5 per cent. For the second year running. the company Is increasing its dividend. For 1963 it goes up tfrom 4s. 3d. to 4s. 9d. The price of the 5s. shares at £5 15s. gives an acceptable yield of 4 per A full report from the chairman, Mr. J. F. 'Cflerson, appeared in last week's issue. Drastic reorganisation of Wardle and Daven- port, the textile firm, has brought its reward, ,for the loss of 0.000 in 1962 is converted into , Pre-lax profit of £22,000 for 1963. lax allow- ances have helped towards earnings of. 9.4 per '..ent, from which a dividend of 4 per cent is ?fared. The company manufactures jersey 1;-ntwear, scarves, ties and threads, etc., and has started this year very well. The ordinary allies at 16s. 6d., yielding 4.8 per cent, look better speculative investment now than for some time past.