Company Notes
By LOTHBURY
Owit the past few years the Avana, Group has expanded its profits by the infusion of new money by way of rights issues. It seems it is still intent on expansion by the proposal to increase the authorised capital by if million. The results for the year ended March 28,. 1964, are excellent, the net profit after tax having risen by 47 per cent to £256,365. The gross profit
of £367,483 was the highest ever achieved. These figures include only five months' profits from the Cambrian Box Co., acquired last year. The chairman, Mr, I. R. Rees, tells shareholders that the company is forging ahead with the modern- isation of its bakeries and food factories and hopes shortly to conclude the purchase of R. F. Brooke, which will give Avana an interest in the meat-pie business. The group's most valuable customer is Marks and Spencer, to whom it has been number one cake supplier for nearly thirty years. All in all the outlook appears ex- tremely promising, although further working capital may again be needed. The final dividend of 20 per cent on the greatly increased capital, with the interim of 15 per cent, makes a total of 35 per cent. The Is. shares at 9s. yield 3.8 per cent.
Pre-tax profits from Caravans International (the merger between Bluebird and Sprite) at £999,000 well exceeded the forecast figure of £893,000 for the year ended March 31, 1964. The chairman, Mr. Ralph C. Yablon, states that nearly half the output from Sprite is sold abroad and that potentialities overseas are still enorm- ous, particularly in Western Europe. At home the caravan industry is flourishing and will im- prove just as soon as local authorities are quicker to give planning permission for caravan sites.
The-net profit for the year at £267,000 is almost £100,000 higher than that of the previous year. The dividend is raised from 32 per cent to 35 per cent and after a 10 per cent scrip issue, the chairman hopes to maintain, this rate on the larger capital. The 4s. shares yielding 5.6 per cent at 25s. 3d. could improve from that level.
Once again Lethenty Tea Estates increased its crop output, but lower prices and higher costs resulted in a lower profit at £13,732 against £24,032. However, the dividend is increased from 10 per cent to 15 per cent, possibly because of ' the strong liquid position (over £50,000) and the better outlook for the current year. The 2s. shares at 3s. yield .10 per cent.
A small company of furniture manufacturers, B. Fertleman and Sons, has managed under difficult trading conditions to improve its gross and net profit at £49,190 and £213,290 respectively for the year ended March 31, 1964. The company' has recently enlarged its range of furniture to include dining-room furniture which is proving promising. The sub-contracting firm of Leonard Montague and Co. (in which the chairman and his son sold a two-thirds share interest) is now profit-earning and will be acquired at the original cost to the present owners. The dividend is in- creased from 18/ per cent to 20 per cent. The 4s. shares at 7s. 3d. yield 6.4 per cent.
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