COMPANY NOTES
DRITISH INDUSTRIAL PLASTICS. The first .Dnine months of the 1957-58 trading period were very good-tip 20 per cent.-but the overall piciure for the year ended September 30, 1958, shows an increase of only 8 per cent., whioh, having regard to the general trend in the plastics industry, is satisfactory. The group profit was £979,129 against £908,248, and the net profit after tax £312,508, a small increase over the previous year. The 20 per cent, dividend is almost twice covered by earnings and now that £500,000 is available (from last year's rights issue) to finance the extensions to three chemical factories and the formation of a formaldehyde plant, the 2s. ordin- ary shares should prove a sound investment at 7s. 3d. to yield 5.3 per cent.; in fact the outlook for this plastics leader could be described as dynamic.
Broom Broom and Wade is another machine-tool com- pany to please shareholders by its recent announcement, for although they are main- taining the 121 per cent. rate of dividend for the year ended September 30, 1958, they also declare a. special interim dividend of 21 per cent. for the current year, which would surely indi- cate a dividend rate of 15 per cent. for 1959. There, is little change in the net profit (after tax)-£263,175 for 1958 as against £284,978 for 1957-and there is a good cover of 35.9 per cent. for the dividend. The company's products of pneumatic drills and compressors are well known and in good demand and can often be seen in use on building sites. The big export business under the drive of the new chairman, Mr. H. S. Broom (son of the late chairman), con- tinues to expand, so that the 5s. ordinary shares at 13s. 6d. yielding 5.6 per cent. should prove a sound long-term investment.
Marco Refrigerators has continued its improve- ment by the increasing demand for fresh frozen food, for which the company provides display cabinets. It has recently opened retail sales and service depots in London (Streatham) and Not-, tingham; and has during the past year reduced prices by 5 per cent. to consumers. Earnings have gone up to 39 per cent., the net profit (after tax) increased to £26,423, and the dividend from 8+ per cent, to 11 per cent. for the year ended September 30, 1958. Since 1954 the company has made good progress and, although during 1958 the 5s. ordinary shares were as low as 4s., the present price of 9s. 6d. (yield 6.1 per cent.) is a more realistic one.
Lombard Banking announces further expan- sion of its interests in New Zealand, where its main subsidiary is the New. Zealand Guarantee Corporation under the chairmanship of Sir Sidney Holland. Their new acquisition is the Wor- cester Finance, whose shareholders have accepted 27s. 6d. for their £1 ordinary shares.
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