Company Notes
IR Philip Warter, chairman of Associated a British Pictures, gave a rather gloomy interim report forecasting lower profits for the year end- ing March 31, 1962. The preliminary figures for the full year are better than expected, as pre-tax profits are up by over 2 per cent. at £5.04 million. The company's cinema interests did better, but ABC Television is stilt responsible for a large percentage of the profits. It remains to be see" how the Pilkington Report will be translated into law, but ABC should stand to suffer least amongst the commercial TV contractors as a provides programmes for only two days a week' The 30 per cent. dividend is maintained. With this good cover the 5s. shares at 21s. x.d. give an attractive yield of 7.1 per cent.
The Leicester Permanent Building Society is the first to make a reduction in its lending rate,. from 61 per cent. to 61 per cent., to new bor- rowers from July 27 and to existing borrowers from October L This is a most praiseworthy move, actuated, the Society says, by the satis- factory inflow of new funds in the first six months of this year. It is hoped that its example will be followed by its principal conipetitors, and it will certainly encourage a larger number of people to apply for mortgages, which they so urgently need for house purchase. The Leicester Permanent is the eighth largest building society the London County Council and Lambeth Borough Council, and large Municipal housing schemes in Manchester, Birmingham and elsewhere. Private Enterprise development is increasing and extending over wide areas including estates at Dumpton Lane and Newington Road, Ramsgate,Sut- ton-at-Hone, Westgate and Birchington in Kent, leg Down, Winchester and Old Alresford in Hampshire, Shaw Head Farm and Booth Fold Farm. Eailsworth and at Tyldesley in Lancashire. In the Nottingham area estates are being developed at Bramcote, Hale Grove, Hucknall and Rose-Garden, Borrowash and in Yorkshire at Brooklands Park, Menston. The `"- creased demand for our houses is very encouraging- The Prefabricated Buildings and Joinery DePa.(E: merits have had a very busy year manufacturloR• Schools, Clinics and Hospital Buildings which have been erected in various parts of the country, have, almost completed the large Barracks Contracts at Aden and also continued to produce high WSW joinery for the industry. Whilst the Building Industry generally has been' and indeed still is, in an extremely competitive 01-, dustry, your Company has met this competition 01_1; through prudent estimating and careful managenn achieved the results which I am pleased to put before achieved
THE ACCOUNTS
Considering the Profit and Loss Account I refer particularly to the item of Taxation on profits cameo, which is much higher than in previous years for the following reasons: Firstly in 1959 and 1960 Your Company benefited by absorbing pre-acquisition in' come tax and profit tax losses of a Subsidiary C°111,, pany, secondly tax relief is not obtainable °' consolidation of certain of the overseas trading activi ties of your Company, which position has beer° aggravated by the weakening of the Canadian doll% thirdly the rate of profits tax has risen during trie, period and lastly there is a reduced amount 0f sP cial allowances for capital expenditure. I now have pleasure in calling your attention to theConsolidated Balance Sheet which further justifies the policy of the Board and the confidence I have:ties pressed in previous years.. In view of the fur` considerable improvement in the liquid position atic with profits again showing a steady increase, Pie, Board recommends a dividend of 10 per cent rePri, senting an increase of over 11 per cent on the distil bution of last year. After allowing for this a furlu'of £13,993 will be added to the undistributed Profits the Group.
TRIBUTE TO "A TEAM"
In accordance with tradition, I conclude ma State meta with an expression of appreciation. 1 therewo offer my sincere thanks on your behalf to all wil°'ess a team, have contributed to the Company's Plait and assisted in attaining the present position, this team I look to the future with confidence.
The report and accounts were adopted.
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