22 JANUARY 1965, Page 30

Company Notes

By LOTHBURY

D ARCLAYS BANK has produced the largest .110 increase in profits of all the big banks— up to 30 per cent from £6.35 million in 1963 to £8.26 million in 1964. The final dividend at 61 per cent is 1 per cent more than forecast since the one-for-ten scrip issue, making a total of 111 per cent. The £1 shares have slipped back to 54s., to yield 4.2 per cent. An interesting point is made by the chairman, Mr. John Thomson, in his address to stockholders. He states that 'such a tax [the capital gains tax] should in fairness taper down as the duration of ownership leng- thens or be adjusted to take an account of inflation.' He does not, however, intend to give stockholders further information regarding the accounts as suggested by the 'Ritchie letter.' but genuinely desires to co-operate.

The preliminary figures from Dorman Long (the iron and steel makers) last month were Misleading. Earnings, in fact, rose by as much as 65 per cent and fully justified the increase in the dividend from 9 per cent to 14 per cent. And as the heavy capital programme continues, so will the investment allowances. It is a pity that the major part of the group's profit comes from its iron and steel manufacturing, which is to be nationalised. Mr. E. T. Judge, the chairman, tells shareholders that the bridge-building and en- gineering sections made losses, which were nearly eclipsed by the profits of the chemical section. Group net profits jumped from £2.928 million to £4.684 million. The l shares at 24s., yielding 11.5 per cent, have an added speculation as the company's non-steelmaking interests could easily be hived off before nationalisation.

The short-term outlook for Steel Company of Wales is indeed a depressing one. The long strike at Port Talbot seriously affected the company's trading profit, which fell from £19.208 million to £13.815 million, but the dividend is again maintained at 10 per cent, though this time it is short-earned. A heavy investment programme lies ahead. The £1 shares at 1.8s. 3d., yield 10.9 per cent.

Leyland Motors does it again with another profit record, this time for the year ended Sep-

tember 1964. Pre-tax profits jumped by as much as 72.7 per cent with a very big share of this coming from exports, for which the commer- cial vehicle section is largely responsible. On the capital increased by a 150 per cent scrip issue, earnings have jumped from 20 per cent to 33.8 per cent and the final dividend of 81 per cent (a little disappointing) makes a total of II per cent. The LI shares at 538. are just below a new peak and should certainly pay to hold, as the company stands to gain from the present and any new export incentives. Sir William Black should be able to give shareholders a most in- teresting report.

Gainsborough Industrial Securities, wholesalers and retailers of clothing and carpets, has re- cently made a very interesting announcement regarding the merger of five prominent floor- covering companies. It is anticipated that 50 per cent of the group's profits will come from this section in future. The group recently came back into the dividend list with a payment of 5 per cent, when the chairman stated that there had been very material increases in the current year's trading profits. Under the circumstances, the price of the 2s. shares at 4s. 3d. may not altogether have discounted the changed prospects.