Company Notes
ONCE again Associated British Foods re- ports record levels of sales and profits for the year ended April 1, 1961 Sales increased by £20 million to £163 million and profits (before tax) by £1,304,000 to £12,775,000. The chairman, Mr. Garfield Weston, stated in his report 'last year that the major part of the group's expan- sion was within the existing subsidiary com- panies This policy is to continue, with capital commitments of £5+ million appearing in the balance sheet. Since the end of the last financial year the company acquired A. B. Hemmings (bakers). Further finance was provided by the issue of £6 million 6.1 per cent. debenture stock and the 5s. ordinary shares were sub-divided into shares of Is. each. The company's interests in the US and Canada may provide the know- how for them to continue the development of supermarkets in this country. With such a great growth potential the company's shares have' always had a high investment rating. They still have, for at 12s. 3d. they yield only 1.9 per cent. on the dividend of 224 per cent, covered by earnings of 56.4 per cent.
- The Legal and General Insurance Co. has taken a 10 per cent. interest in the equity of London Shop Property Trust and has agreed to provide £1.1 million for development over the next three years. The Trust has just made a one-for-six rights issue which will bring the issued capital to £1 million and qualifies the company for trustee status. Over the past five years there has been steady growth and this should continue as new properties are acquired and increasing revenue can be expected. Those recently acquired in Manchester and Bedford did not contribute to profits for the year ended April 30, 1961, which amounted to £164,122 be- fore tax against £129,468. Earnings have in- creased to 13.1 per cent. and the dividend has been stepped up by 1 per cent. to 10 per cent. The chairman, Sir Cyril Black, is confident that he can at least maintain the past year's dividend on the increased capital, in which case the 5s. ordinary shares at I Is. 9d. x.d. look an attrac- tive investment to yield 4.3 per cent.
In spite of a fall in the price of the com- modity during the year, Kiata Kellas Rubber Estates reported a higher net profit (before tax) of £77,664 for the year ended March 31, 1961, against £71,689. Kiata Kellas Tin contributed a sharp increase in royalty income and with the present high price for tin this should again produce a larger return. Although output of rubber from the estates may increase, the chair- man, Mr. J. R. Tannock, warns stockholders that they should expect a lower dividend next year. After the 50 per cent. scrip issue last Sep- tember, the 25 per cent. dividend was equivalent to the previous rate of 37f per cent. The 2s. ordinary shares are now 4s.
British Homophone, a subsidiary company of Crystalate (Holdings), increased its profits before tax from £51,590 to £62,353 for the year ended March 31, 1961. The company makes gramo- phone records, but supplies them only from customers' own recordings. It was not from this source that the increase in profits came, but from the Ebonestos subsidiary, which specialises in plastic mouldings. Over 98 per cent. of the equity is held by the parent company, but the 5s. 7 per cent. preference shares can be bought at around par.
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