Company Notes
CONSIDERING the difficulties with which J. Brockhouse had to contend last year, it did well to record a pre-tax profit of £1,119,406 for the year to September 30, 1962, against the
previous year's record profit of £1,255,345. The current year had to provide for losses from the revaluation of the Canadian dollar, a write- down of the properties in Northern Rhodesia and stock losses in South Africa. These the chairman, Mr. John Brockhouse, rightly con- siders as non-recurring loss items. The group manufactures springs, castings and drop forgings, largely for the motor industry, and the future should be more encouraging, especially as all the premises and plant are now fully modern- ised and the group is geared for further ex- pension. It is good to know that the chairman is still optimistic for the future. The £1 shares at 43s. give a good yield of 5.8 per cent. on the 121 per cent. dividend.
A point of particular interest to the patient shareholders in Oddenino's Property and Invest- ment Co. is the reference of Mr. Instone Bloomfield, their chairman, to the company's venture in the US. This amounts to a 65 per cent. interest in a portfolio of properties, the total cost of which is $36 million. These are mostly situated in Washington DC, Virginia, Maryland and Pennsylvania. The necessary finance for this will be raised in the US and of course will have to be repaid. Negotiations are proceeding, says the chairman, for property acquisitions in Australia. But the immediate outlook promises nothing extra by way of in- come for a year or two from the various de- velopments at home. These include the Peter-
borough shopping centre, the White House and Athenmum Court Hotel and a new hotel is planned in Kensington. The only property likely to contribute to revenue this year is the one at Swindon. The net profit after tax for the year to March 31, 1962, was £56,377 against £33,436. The dividend is 7+ per cent. against 6.3 per cent. Shareholders are asked to approve a very large increase in the company's borrow- ing powers amounting to nearly £20 million and also to accept a 1 per cent. return on their investment at today's price, 36s. for the 5S. ordinary shares. The future will tell if this in- flated price is justified. For the year to June 30, 1962, Allied Lando" Properties profits before tax were £29,720 against £30,996. The trading profit increased but higher interest charges and directors' fees accounted for the lower net figure, a disappoint- ing result. Certain properties have been acquired with the aid of a £130,000 institutional loan. These in time will be revenue-producing. It was necessary to raise by mortgages and debenture stock £150,000 to reduce the bank overdraft to £83,000. The chairman, Mr. A. R. Milton, says that administrative reorganisation, will in future save £5,000 a year in directors fees, but gives no indication of the revenue or profit that can be expected for the current year. Under the circumstances the 2s. shares 1001( rightly valued at 5s. 9d. to yield 6.7 per cent' on the maintained 20 per cent. dividend.
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