25 DECEMBER 1964, Page 22

Company Notes


HE Australia and New Zealand Bank con- I eluded another prosperous and successful year ended September 30, 1964, when con• solidated net profits rose to £2.167 million as against £1.887 million. The dividend is again 12 per cent. Deposits have increased by 10 per cent and a healthy sign is that demands for loans have increased considerably over the previous year. In October a Savings Bank was established in New Zealand and at head office an investment advisory and management service was started. The chairman, Sir Geoffrey C. Gibbs, gave, as usual, a very full report of the Bank's activities, and in proposing a one-for-ten scrip issue, hopes to maintain the dividend on the larger capital. At 54s. 9d. the £1 shares, yielding 4.8 per cent, are a safe and attractive investment. The recent report from S. Noton Ltd., manu- facturers of travel goods under the trade names `Noton Town' Luggage and 'Victor-Viceroy Luggage, showed real progress. This is encourag- ing after a long static period. The- net profit (after tax) rose sharply to £77,163, from £41,082, after allowing for a nearly doubled tax charge. The dividend of 15 per cent was held on the capital increased by a 25 per cent capital bonus. The directors intend to repeat the rate of bonus early in the New Year. During the current trading period the company may well exceed the record profit last year, as it is now geared to increase its exports of machine-made luggage, which last Year were 22 per cent up. In this respect the corn- Pany's building progrannme tabe completed early in..1965 should make. possible a greater outflow of goods for. home and overseas orders, which are substantially higher than last year. Internal re- Qrganisation .should also . promote larger profits sari sojustify. the chairman, Mr. S. S. Hammers- lqy, ;in, his favourable views of the future. The 5s. ordinary shares at lOs are attractive on the reasonable assumption that the dividend (covered Diore. than twice) will be maintained on the pro- Posed ,larger capital. Then the shares would be

an. attractive yield basis of 83 per cent as against 71, per cent now.

Stewarts and Lloyds has produced far better Profits than expected for the year ending October 3,,1964, with the second half of the year making very good show. On the capital increased by a one-for-two scrip issue the final dividend is 2s. 6d. on the £1 ordinary shares for a period of fifty-three weeks, making a total of 3s. 6d. against 2s- 4d. Pre-tit-a( profits were a record at £18.72 Million. Large sums of money were spent on Capital account overseas which amounted to £11.3 million, and £21 .million has been ear- Marked for future capital expenditure. The divi- dend has been stepped up from 15 per cent to 1,7.11 per cent, which is covered twice by earnings. 111 spite of these excellent results, the £1 ordinary shares, are friendless at 31s. 6d., yielding 111 kr; cent due to, the fear of re-nationalisation and 4,Possible decline in future earnings, but surely at this level they could prove a profitable lock-up.