COMPANY NOTES
I.C.T. preliminary figures to September 30, 1959, are the first to be presented by International Computors and Tabulators since the merger between British Tabulating Machine and Powers- Samas. These include twelve months' profits of B.T.M., but only nine months of Powers-Samas. During the past year a debenture and a rights issue were made for £4 million and £4.3 million respectively. Total group profits before tax were £2.33 million; this compares with a figure of £2.025 million earned by the two companies for a complete financial year. Sir Cecil Weir, the chairman, forecast a dividend of not less than 8 per cent. Ten per cent, is to be paid, which suggests that profits are going ahead faster than anticipated. It is fair to assume that profits are expanding and there is little doubt that next year will produce even better results, and will there- fore justify the high price of the .11 ordinary shares which at 74s. 6d. yield 2.7 per cent, giving the shares a high investment status which they have enjoyed for many years.
Turner and NewalI's chairman, nearly a year
ago, forecast slightly lower profits for the year ended September 30, 1959. This drop in the net trading profit was only by £183,847 to £13,003,864, although the gross trading profit showed a rise of 41 per cent. After allowing for a larger amount than last year for depreciation and a fall in trade and investment income there has been a saving of over £1 million in the tax payable. Thus the net profit after tax is 15 per cent, up at £6,894,925 so that shareholders are going to be rewarded by a dividend of 20 per cent. against 15 per cent.—this was a pleasant surprise. The chairman's state- ment is awaited and it is hoped will indicate that the company will be earning higher profits from its sales of asbestos cement, conveyor belting and brake and clutch linings. That being so, the £1 ordinary shares which since the dividend an- nouncement have risen to 105s. are still not dear to yield 3.9 per cent. on the 20 per cent. dividend covered two and a half times by earnings.
Mercantile Credit was briefly referred to by Custos in last week's issue. During the year (ended September 30, 1959) the issued capital was increased from £3,104,541 to £10,112,880, of which £8,862,880 was paid up by the issue of ordinary shares to the Westminster and Martins Banks, and by preference shares to Mutual Finance Limited. Acquisitions made for cash during the year were Dunelm Trust and Man- chester Auto Finance and shares in Elson (London) Limited. These new funds made avail- able through the banks have not as yet been fully utilised nor have the recent acquisitions reflected a full year's profit contribution tp the operating profit of £2,069,890 against £910,536 for 1958. Sir Mark Turner, the chairman, gives a compre- hensive review of the company:s activities and with his report there is a valuable growth table covering the past ten years. This shows that HP debts have risen from £5.2 million to £54,8 mil- lion, retained profits from £31,000 to £554,000 and profits after tax from £69,000 in 1950 to £1,052,000 in 1959. The 5s. ordinary shares are a sound invest- ment, although at 28s. 6d. xd, the yield is only 2.6 per cent. on the 20 per cent, dividend; this is usual for this class of hire-purchase company with a high investment standing and growth prosi5ects.
Granada's preliminary figures indicate that that. trading profit to September 26, 1959, has been doubled, but the net profit after tax is even'better. being £696,290 against £257,129. This means that earnings have jumped from 55 per cent, to 177 per cent., from which a dividend of 80 per cent. is being paid on the 'A' ordinary shares plus a 10 per cent. twenty-fifth anniversary bonus. It will be interesting to learn from the chairman, Mr. Sidney L. Bernstein, to what extent the cinemas, sweets and record shops have contributed to this impres- sive profit figure, and also (if he can disclose it) how much benefit will be derived by the Granada TV network on the termination of its working agreement with Associated Rediffusion next July. This could be substantial. The quality of Granada TV programmes has improved and no doubt will continue to do so, as will the dividend paid to the non-voting Ss. 'A' ordinary shareholders. These shares are now around 105s. to yield 4.25 per cent. on a 90 per cent. dividend basis.
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