4 SEPTEMBER 1964, Page 32

Company Notes

By LOTHBURY

ABREAKDOWN of the very satisfactory pre-tax profits from Distillers shows that 83 per cent came from potable spirits, so that whisky and gin profits still form the major part of the company's interests, although there was some in- crease in profits from the industrial division. DCL has now gone into the bulk market and in supplying the US, its largest customer, it is doing very well indeed. The group net profit for the year ended March 31, 1964, rose from £17.27 million to £19.72 million and the dividend has been increased from 10.6 per cent to 114 per cent. The chairman, Mr. R. S. Cumming, ex- pects that the increase in the excise duty will retard, for some time, the expansion of sales at home. Taking a long-term view, -I would ex- pect overseas sales of spirits to continue to climb,, so that there is still scope in the I0s. shares at 26s. 3d., yielding 4.4 per cent, with the dividend covered 2.3 times.

For the fifth year running, the total dividend

(this time for the fifty-three-week period ending April 4, 1964) from Scribbons-Kemp is 10 per cent. The net profit has fallen from £159,000 to £118,000, and this is after allowing for taxation credits and capital allowances and provision for reorganisation costs, etc., amounting to over £120,000. A very poor result. The 5s. shares at 8s. 6d., yielding 5.9 per cent, could fall and do not appeal until there is SCHHE real sign of increasing profits.

Oldham and Sons, makers of batteries and mechanical and electrical equipment, had a slight setback for the year ended March 31, 1964, when pre-tax profits fell to £564,000 from £596,000. But there was good reason for this, as large sums were spent on development and sales promotion of the company's new 'Red Top' battery. Over- seas subsidiaries in South Africa, India, France and Australia did very well and helped to offset the decline in home trade. There are now signs that the group is again making progress in the current year-its centenary-which may make possible a better dividend than I4-per cent (1 per cent up) now declared. The company has a long and successful record under the chairmanship of Mr. John Oldham. The Is. shares at 3s. 6d. yield 4 per cent.

Stewart Plastics has started off well in its first year as a public company, with profits and divi- dend above the forecast. For the year ended April 30, 1964, pre-tax profits were £207,321 and a dividend of 224 per cent has been paid. The company produces high-quality domestic mouldings and is having to increase its factory accommodation to keep pace with expanding business. The chairman, • Mr. Bugan-Chapmao, states that sales to date are in excess of those at this time last year. The 5s. shares at 22s. 641., yielding 5 per cent, look a promising investment.