Company Notes
MR. CECIL W. MASON, chairman of Gallaher Ltd., is of the opinion that the recent pub- licity over lung cancer in relation to smoking
has put the whole problem out of perspective, but he does, however, confirm that tobacco manufac- turers will continue to play their part in research on this problem. Gross profits for 1961 increased by £1.9 million, which, after taxation, becomes a net increase of £516,581. During the year the company introduced Benson and Hedges king- size filter cigarettes and Harlequin small-size cigars. Both are selling well. New factories came into production at Manchester and Cardiff, and the share capital of J. Wix and Sons Ltd., the American tobacco company, was acquired, but profits from this acquisition are not reflected in the present accounts. It is too soon to predict whether this year's profits will be materially affected by the drop in sales which it is reason- able to expect, but even so the 10s. shares at 32s. 9d., yielding just over 6 per cent. on the 20 per cent. dividend, should prove a rewarding investment.
During 1961 the great shipbuilding yards of Harland and Wolff delivered amongst other ships the Canberra to the P and 0 Steamship Cu• The year was a disappointing one, as there was a substantial reduction in the tonnage launched, Consequently, the trading profit fell from- £371,515 to £306,403, and the net profit, after tax, from £246,798 to £151,702. The reduction , of the Ordinary dividend to 21- per cent. was , not unexpected. The chairman, Mr. J. S. Baillie, pointed out that substantial provisions had to be made in the accounts for ascertained and ex- pected losses incurred in 1960 and 1961 on un- profitable contracts, and expects the trading profit for 1962 to be materially worse than for 1961. In the circumstances the £1 shares at 10s. do not make much appeal for the near future.
The annual general meeting of Penguin Books, to be held on May 30, will be the first since this company was made public. The busi- ness was originally founded in 1936 on a capital of £100. Profits for 1961 at £221,043 were a little below the forecast figure made at the time of the offer for sale. The chairman, Sir Allen Lane, reports that the greater part of its sales is made in the home market, but export sales increased by 10 per cent. and accounted for 38 per cent. of the total. The company has a wide range of publications, including Pelican. Penguin series (popular paperbacks and classics), Puffins for children and various other guidebooks and reference books. The chairman hopes that profits for the current year will be reasonably satisfactory. On the basis of the last dividend of 13} per cent., the 4s. shares at 14s. 6d. yield 3.8 per cent.
The Norwich Union group of insurance com- panies reports increases in nearly all departments for 1961. The revenue account shows an increase of £3.3 million, and interest on investments (less income tax) an increase of £1.6 million. The total funds in the balance sheet now amount to £234,063,371.
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