28 AUGUST 1964, Page 28

Company Notes


DOINTS emerging from the review of Nebanga r Consolidated Copper Mines (an extract from which was reported in last week's issue) by the chairman, Mr. H. F. Oppenheimer, were: (1) for the year ended March 31, 1964, the company achieved a record output of finished copper; (2) due to the farsighted three-year build of stocks of copper, the board was able to satisfy its customers' increased demand for the metal, re- sulting in, (3) a much larger gross profit; (4) higher taxes were the reason for the slightly re- duced total dividend of 6s. 9d. against 7s. per £1 unit; (5) the company, by a new process, hopes soon to be able to treat many millions of tons of oxide ore which hitherto have been un- economic to mine. This last item does suggest that the board has confidence in the future (in spite of the political situation) and intends to spend further millions of pounds on expansion. The £1 shares at 53s. yielding 12.6 per cent can therefore be considered a very promising specu- lation.

Lombard Banking last week produced some remarkably good half-yearly figures to June 30, 1964. Pre-tax profits of £1.07 million reflect an increase of over 60 per cent on the total figures for 1963. The interim dividend is being main- tained at 5 per cent, but the directors forecast a minimum final of 14 per cent for 1964 making a total of 19 per cent against 17+ per cent. Allowing for the increase in the Bank rate this year, Lombard will be paying more interest on its £24 million bank loans. However, the full year's results should be very satisfactory and the 5s. shares, which have improved during the year from 12s. 10-Id. to the present price of

Custos is on holiday.

18s. 3d., now look more correctly valued to yield an assumed 5.2 per cent.

Tunnel Portland Cement, whose financial year ended March 31, 1964, raised its pre-tax profit by 17 per cent to £2.788 million.. The past year was an abnormal one for deliveries, up by 25 per cent (only 2 per cent for export) against a normal 15 per cent. The cement industry, says the chairman, Mr. G. Hagerup, is very con- scious of its obligations to supply the-country's needs. Tunnel is certainly doing its bit as new plants are working 'flat out,' but further output increases can hardly be expected until the capacity is doubled at the Padeswood plant by 1965-66, which will be taken care of- by the recent £3 million debenture issue. The final divi- dend of Is. 5d. with the interim of 6d. means an increase of two points at 19.1 per cent on the. 10s. A and B shares. There is also to be a special tax-free payment of 21 per cent against 2 per cent previously. The 10s. B shares at 59s. 6d. yield 3.2 per cent and should certainly be held.

Enstoek Trust had a portfolio valuation as at March. .31, 1964, -of- .£2,462. million of which over 10 per cent represents its-holding in Klinger- Manufacturing, who make specialised yarns and yarn processing machinery. Ens tock has recently done a deal with ICI, selling them 309,555 shares at 60s. each in Klinger but retaining- 447,977 shares. on which it has received a 100 per cent bonus. Thus Enstock. is in the happy position of having about £1 million (including £72,000 from another sale) with which to broaden its invest- ment portfolio. The Ayling ltndustries • Group has. done well, increasing its pre-tax profits by 78 per cent, and this trend is continuing in the current year. Total pre-tax profits increased from £126,000 lo £206,000 and. the dividend was raised from 15 per cent to 20 per cent. Share- holders have done well in seeing the price of their shares up from a low point of 2s: 9d. in 1962 to the present price of 10s. 3d. Klinger prospects are still bright and .this, together with the company's own encouraging progress, should. reflect a' further upward move in the shares which are now yielding 3.9 per- cent.