COMPANY NOTES
N last week's issue (page 552) we published an I extract from the chairman's statement to the shareholders of Pollard Ball and Roller Bearing Company which disclosed a highly satisfactory profit (subject to taxation) of £514,950 for 1959 against £371,121 for 1958. This company has plans for further extension of its interests and to achieve this has arranged to redeem the small amount of £75,000 of outstanding debenture and to acquire the outstanding 50,000 10 per cent. £1 preferred ordinary shares in their subsidiary company Pol- lard Bearings (Northampton) Ltd. In proposing a 20 per cent, final dividend, making 25 per cent. for the year, and a one-for-four free issue of 4s. ordinary shares, the chairman, Mr. F. C. T:Lane, says that shareholders must not expect this free issue to become an annual event. However, one can at least expect the same dividend next year on the increased capital, and with a very progressive record, first-class management and products, the 4s. ordinary shares at 45s. 9d. on the indicated dividend covered three times yield 2.7 per cent.
British Wagon, in which the Royal Bank of Scotland has a 40 per cent. interest in the equity, once again reports excellent results, the net profit after tax being £369,675 against £260,120 for the year 1959. The company's deposits had increased by the end of the year from £5.75 million to £8.72 million; undoubtedly the Royal Bank has introduced a valuable amount of new business and with this backing the company should con- tinue to prosper. Two subsidiary companies under the name of Road Rollers Ltd. have done well and the chairman, Mr. R. A. Dyson, also advises that the company's interests in Eire, Canada and Australia are most promising. It would seem that barring any government interference, this com- pany is well placed further to increase its business. Last year a 100 per cent. scrip issue was made; this year the dividend at 124 per cent, is covered by earnings of 22.9 per cent. This 3 per cent. yield is not ungenerous on the £1 shares, now 80s. Last year the very old-established Typlo° Tea Co. gave shareholders a 100 per cent. scrip issue; this year they are to receive another free scrip issue of 25 per cent. plus a 30 per cent. dog' dend, which is, in effect, a 50 per cent. increa`e on last year. Typhoo is one of the big three in the tea trade and, backed by wide distribution service and advertising and with more settled conditions in Ceylon, the company should continue t° prosper. For those wanting a rewarding stock, this is it; with more than a threefold cover for the dividend, the 30 per cent. rate should easily he maintained on the increased capital. The 5s' ordinary shares at 41s. 3d. x.d. yield 3.6 per cent; The preliminary figures for Musical .Ind Plastic Industries disappointed the market• causing the shares to fall from 6s. to 4s. 6d.. but the net profit was only £4,000 lower at VOA although there was a fall of £28,000 in the trading profit. The introduction of the new and now popular 'Gala' records last year was no doubt costly. This year they will probably be making 3' larger contribution to profits on which perhaPs the chairman, Mr. B. Davis, will be able to advise shareholders at the annual general meeting. TO 32.5 per cent. dividend is still twice covered by earnings and the Is. ordinary shares at 4s. 6d. noW yield 7.2 per cent. The dividend of Henekeys remains unchanged' at 15 per cent., but it should not be forgotten/ that shareholders are, this year, receiving an to' creased income (equivalent to a 5 per cent.( ordinary dividend) on their bonus issue last Feb-, ruary in 7 per cent. preference shares. Net profit; after tax for the year ended September 30, 195?' was £74,865 against £57,569. The company 15,1 expanding its 'off sale' departments which should" further contribute to this year's profits; it also has' an interest in Tomatin Distillers. This is a corn' pany that has for many years served shareholders well, so that the 5s. ordinary shares are still a good purchase at 15s. 6d. to yield 4.8 per cent.
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