COMPANY NOTES
LONDON BRICK'S chairman, M r. A. T. War- boys, in his annual statement last May, made quite an optimistic forecast concerning a better demand for • the company's products which the ligures for the year ended certainly confirm. It. now seems that, with the end of the credit squeeze, there will he increased building activity both by private enterprise, aided by better advances from the building societies, and by local authorities. At the end of 1957 there was a one-for-three scrip issue, so that the first interim of 6 per cent. was t slight increase on the previous year. Now the second interim, just declared, of II per cent. (which is also the final) makes 17 per cent. for the
year and gives the ordinary shares at 68s. xd. a yield of 5 per cent. which reflects the steady profit record of the company.
English Electric has, in spite of a difficult year. produced very good figures to December 27, 1958. Group trading profit was higher at £10,155,247. and after depreciation and taxation, there remains a net profit of £4,092,358 against £3,447,285. and the surplus has been increased from £1.902,091 to £2.547,144. The company controls Marconi Wire- less Telegraph, Marconi International Marine, D. Napier and Vulcan Foundry, the two-last-named having contributed increased profits to the group. The aircraft side of the business (for which a separate subsidiary has been set up) has done well and no doubt even larger profits can he expected from Vulcan Foundry on its share in the forth- coming railway modernisation programme. Last month the company made a rights and a deben- ture issue, when the 14. per cent. dividend now declared was forecast, but the 50 per cent. scrip issue now announced was not expected. On the increased capital the scaled-down rate would he 9i per cent. (10 per cent. could reasonably be expected), so that the 1 ordinary shares at the current price of 64s. xd. give a 'blue chip' yield of 4.29 per cent.
AEI have just produced most encouraging ligures for the past year. which clearly indicate that the second half-year's gross trading profits are responsible for a marked increase. These have jumped from £6.99 million in the first half of 1958 to £8.87 million, which . compares with £6.94 million in the last half of 1957. We shall be able to give more details next week on this com- pany's affairs. At the present price of 54s. 9d. the £1 ordinary shares are a first-class investment to yield 5.57 per cent. on the maintained dividend of 15 per cent.
City and Metropolitan Building Society has had a most successful year. The chairman, Mr. F. E. Cleary, MBE, reports that assets have increased by £259,388 to £1,618,059 and investments from shareholders and depositors by £140,808 to £527,915. There has been a steady demand for mortgages which again have shown an increase at £330,818. A large percentage of funds invested in trustee stocks mature within six to eight years while cash amounts to £112,740. Liquid funds represent 18 per cent. of the total assets.
Leicester Building Society has startled other members of the Building Societies Association by announcing that, as from the beginning of this month, the rate charged on owner-occupier mort- gages will be reduced by 4 per cent. to 51 per cent. This welcome decision is based on the fact that there has been a rising inflow of funds which will enable the Society to meet the heavy demands for new mortgages and the desire of the society to give borrowers the benefit of the present lower money rates. The Society will continue to pay its current rates on paid-up shares and deposits.
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