Company Notes
Athe present time there are few signs of any recovery in the iron and steel industry, on which Murex Ltd. greatly depends for its profits. But this company, as the chairman, Mr. H. T. Penn, points out, will be the first to bene- fit from any upsurge in demand and must there- fore maintain adequate stocks of the alloys and ferrous metals which it refines. Pre-tax profits fell from £1.34 million to £1.13 million for the year ended April 30, 1962, and earnings from 28.6 per cent. to 23.2 per cent., which the directors decided warranted a reduction of I per cent. in the dividend to 12 per cent. However, the company is still expanding its facilities for the production of its products as the chairman continues to regard the future outlook as encouraging. The £1 shares at 34s. 6d. yielding 6.8 per cent. may offer investors a chance of acquiring a good share at an attractive price for the future.
Since the last report Town and City Properties has completed several important property developments, the revenue from which is only partly reflected in the accounts for the year ended March 31, 1962. It is the policy of the board to develop their interests in shop, office and com- mercial properties suitable to leasing to impor- tant tenants. These are well-known substantial companies, such as Victor Value and Fine Fare, and many well-known names which are seen as retailers in any High Street in England, plus a number of leading manufacturers, insurance companies and some government departments. Recent acquisitions have been satisfied by the issue of ordinary shares which have increased
the issued ordinary capital to £2,311,509. On this amount a final dividend of 9-1- per cent, is to be
paid—an interim of 3-1 per cent, was paid on the smaller capital. The capital is again being in- creased by a capital bonus, this time of 50 per
cent. (in 1960 and 1961 a 20 per cent. bonus was made). The chairman, Mr. B. D. East, forecasts a dividend of 121 per cent. on the increased capital, which puts the 2s. shares at 38s. 9d. on
a less than I per cent. yield basis. The companY is engaged on a £17 million development pro- gramme, plus over £8 million of development through recent acquisitions. This is an investment for the surtax payer. There are great possibilities for the future for those who are prepared to pay a very high premium. Since 1957 the rental income has increased from £50,992 to £688,562 in 1962 and is still increasing.
Since the close of the year ended April 30, 1962, London Shop Property Trust discloses fin' portant developments for the future. The chair- man, Sir Cyril Black, states briefly that two major building schemes were completed in Manchester and Bedford, which will contribute to this Yea' income. The balance of the issued ordinary calm' tal will be revenue-producing this year. The Legal and General Insurance Company has Pro' vided £1+ million mortgage funds for future developments, which will in time contribute to profits. Advantage will be obtained in future by the merger effected between London ShoP Property Trust, Rio de Janeiro Land Mortgage and Investment Agency and Kenwell Property Holdings. This group is a company with a pro- gressive record, under top-grade management, The 5s. shares at 16s. 9d., yielding 3.2 per cent., will prove a worthwhile investment. Net pront, after tax, at £91,016 shows a substantial innWv.e- ment over the 1961 figure of £62,232; this is in step with the dividend of I I per cent. against 10 per cent. Central and District Properties has steadtfY increased its rental income since 1959 front £497,287 to £1,129,169 for the year ended March 31. 1962. Profits, after tax, for the same period
have risen from £172,343 to £441,768. n
,768. Reeen the company made a rights issue to ordinal shareholders of 6f per cent. Convertible Un- secured Loan Stock, which brought in an amount of £3,171,500 and provided finance for further development and considerably reduced the bafin,slt, indebtedness. This company has for the r,01 time ventured into the US by acquiring a ) per cent. interest in an American companY de- veloping a major office block in Boston, Mas' The company's major interests are in .Lond7. (including Berkeley Square House,. which con" tributed an extra £190,000 net income this yen`.! and in Manchester. The chairman, Mr. Arthur L. Ball, is confident for the future. He Pr.°01,sho to make a one-for-one free scrip issue with u'et final dividend of 11+ per cent., making 16 .130,, cent. for the year, against 13+ per cent. The 1_3t: shares at 52s. give a fair return of 3 per ee" with very good future prospects.
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