COMPANY NOTES
?THIS year is the seventy-fifth anniversary of
Jeyes Sanitary Compounds Co. Ltd. The trading profit for the year ended December 31, 1959, shows an increase of £92,618 over 1958, resulting in a group profit after tax of £196,180. The chairman, Mr. T. Blundell Brown, gives shareholders a most encouraging review of the future expansion of the company's well-known products. He advises that they have recently established a development laboratory at Barking, and have acquired an investment interest in the old-established paper-making company of Peter Dickson and Son Ltd.—this closer association will prove of benefit. As a result of a revaluation of the company's assets, it is proposed to capital- ise £218,500 of reserves by making an issue of one 5s. ordinary share for every two held. It is good to note that the estimated expenditure for the current year, which amounts to £180,000, is being provided from the company's own re- sources. The outlook is certainly encouraging; this is indicated by the price for the 5s. ordinary shares, which at 38s. 9d. yield 3.2 per cent. on the dividend of 25 per cent.
Accounts for Norcros Limited are made up to November 30, 1959, covering a period of seventeen months. The results can be considered satisfactory with a group profit of £1,362,470, giving a net profit after tax of £790,709. The group now covers a wide field. Amongst its subsidiary companies are Jensen Motors, Island Crafts Ltd., S. Maw and Sons, John Tinsley and Co., Union Fibres Ltd.; the total number of subsidiaries is now fifteen. The chairman, Mr. John V. Sheffield,. explains that the future expansion of Norcros should be confined to the rather larger type of company; consequently, a new company, Southcros Limited, has been formed for the purpose of. catering for the smaller businesses which the company hope to acquire in the future, and which will fit into the pattern of the group. It is interesting to note that the board has been strengthened by the appoint- ment of the Hon. Geoffrey Cunliffe (late of the British Aluminium Company) as managing director. The final dividend of 20 per cent, in addition to the previous special dividend on the smaller capital is equivalent to a total of 40 per cent, on the present capital, so that the 5s. ordinary shares at 54s. yielding 3.7 per cent. should prove to be a promising investment for the future.
In these notes of March 11, we commented on the prospects of A. Wilson's Stores (Holdings) Ltd. shares, which at 25s. 6d. would seem to have possibilities for the future. A statement has just been received from the chairman of the company, Mr. J. M. Tilling, to the effect that they have recently acquired the business of Sydney B. Gilbert, manufacturers of handbag frames and electric-light fittings. The group's, other subsidiaries are: Edgars Shops, London Town Dresses, M. Sloper and Co. Ltd., and
Cheshires of Nottingham. It is now proposed to make a two-for-one free scrip issue, and a divi- dend of not less than 30 per cent, is forecast for 1960/61, which would be the equivalent of 90 per cent: on the present capital. Perhaps the board will give an indication of what the final dividend is likely to be; this could be 40 per cent, or 50 per cent. (an interim of 25 per cent. has been paid), which would justify the present price of the 2s. ordinary shares, now 29s. 6d., particularly as there is little doubt that the com- pany will continue to expand its interests.
The Alliance Building Society continues its rapid pace of expansion under the managing directorship of Mr. Lewis C. Cohen. During 1959 a record total of £14,200,954 was advanced on mortgage, an increase of 50 per cent. on 1958; with the increased volume of new build- ing prospects with a heavy demand for loans, the directors look forward to a busy year in 1960. The total assets now exceed £73,000,000 and although the excessive liquidity of total assets was reduced from 18.66 per cent. to 16.3 per cent, this amount is represented by cash and securities exceeding £12,000,000, and is still a very strong reserve.
Mr. Laurence B. Caffyn, chairman of The Eastbourne Mutual Building Society, reports a • very successful year. He emphasises in his state- ment (see below) the importance of a society obtaining trustee status (which his society en- joys); this demands a high standard of conduct in every respect. The society's assets increased by nearly £500,000; every £1 deposited with them in 1959 was represented by assets of £18 in the balance sheet.
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