COMPANY NOTES
Pr HIS week we comment on three well-known 1 rubber companies whose estates are situated in Indonesia.
United Sua Betong is perhaps the leading rubber producer in Malaya. As such it is finan- cially very strong, for net liquid assets appear to be only slightly lower than a year ago and, taking investments at their book value, these represent 26s. 3d. per £1 stock unit. Profits before tax amount to £1,154,888 for 1957 as against £980,547 for 1956. Profits after tax left a balance of £648,500 from which a dividend of 50 per cent. is to be paid (against 421 per cent.), absorbing £388,125. It also should be noted that in August last year stockholders received a return of 5s. per unit from the share premium account, which took £337,500. In spite of these payments, securi- ties and cash stand in the balance sheet at a total of £1,731,401; these are impressive figures. The Company has a large holding in Oil Palms of Malaya which produced a dividend last year of £54,000 against £45,300 for 1956.
Last year's rubber crop of 22,760,000 lb. established a record, whilst the output of tea was 2,154,500 lb. Pending agreement under the Finance Act of 1957, a sum of £290,000 has been transferred from tax liabilities to tax suspense account.
The annual general meeting is being held on June 4, when the Chairman, Sir John Hay, will no doubt forecast a fall in profits as a result of the drop in rubber prices. During this year the £1 ordinary shares have moved between 46s. and 54s. 6d., and now at the present price of 50s. yield as much as 20 per cent.
Another Malayan rubber company to produce excellent results is Highlands & Lowlands Para Rubber, announcing a considerably increased dividend of 371 per cent. for 1957 against 20 per cent. for 1956. To this should be added a tax-free payment already made to stockholders of 71 per cent, as against 2+ per cent., this being paid out of profits on land sales made to purchasers for building. It is understood that further land sales are being negotiated. Net profits for 1957 were £219,000 (including £24,200 income from invest- ments) against £216,250 for 1956. There appears to have been a saving of about £50,000 on the tax account for last year, and the net liquid assets were strong at over £390,000. In 1957 oil palms Yielded as great a profit as rubber, a very satisfac- tory feature. Planted areas of both rubber and oil palms are being increased in the current year. But today both these commodities are realising lower Prices, which may influence the dividend payment next year. It has been decided to increase the authorised capital from £600,000 to £1,000,000. Thus the 2s. stock units now obtainable at 3s. give the generous yield of 25 per cent. The Bah Lias Rubber Estates has reported a Profit, before tax, of £91,732; after making trans- fers of £30,000 to reserves a dividend payment of 40 per cent. is recommended. The balance sheet reflects the receipt of capital repayments of £88,445 from Kulai Rubber Estates, in which the Company has a 76 per cent. interest, also remit- tances totalling £47,348 from Indonesia in respect of previous years. Last August the Company made a return of half of its then issued share capital, to stockholders from the share premium account. The balance sheet at October 31, 1957, disclosed an amount of £122,441 in British Government securities and cash against the issued capital of 4126,721 in 2s. ordinary shares.
The estate is situated in Sumatra where future Political developments are particularly uncertain. so that a yield of 23.25 per cent. is obtainable on e 2s. ordinary shares at 3s. 3d.
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