Company Notes
rrHE results for the twelve months to April 130, 1961, for British Land Co. can be con- sidered as very satisfactory. The company has during the past year made purchases exceeding £.4 million out of its own cash resources and is in a very advantageous position in regard to future property developments. The Prudential Assurance Co. has arranged to provide £34 million over the next five years by a 64 per cent. debenture and has taken up 1,400,000 of the company's 5s. ordinary shares at 10s. 6d. each. There has been a small decline in the pre-
tax profits, mainly due to a reduction of sur-
,
plus from realisations, bui in the current year there will be an increase in the net revenue from properties (last year this was 29 per cent. up) and further expansion over the next few years can be expected. The deputy chairman, Mr. Jack Bridgeland (the Earl of Shrewsbury is relinquishing the office of chairman at the annual general meeting on October 12), states that it may be necessary before long to issue further ordinary capital in order to make new acquisitions. The amount earned for the or- dinary dividend was £175,607, which did not quite cover the 9 per cent. payment, but this should not deter shareholders, who can look forward to the future with confidence. The 5s. shares at 9s. 6d. give a good yield of 4.7 per cent. The company's properties include forty- eight blocks of offices and showrooms, 634 shops, many flats, 511 houses, 1,957 ground rents and 187 garages, etc.
Mr. Arthur L. Ball, the chairman of Central and District Properties, tells his shareholders that whereas at present the net rents received can be divided roughly 50 per cent. each be- tween residential and commercial property, the future trend is towards an increase in the latter. This is another company in which the Prudential Assurance Co. has taken an interest, to the ex- tent of 63 million, by way of a debenture. The company has increased its mortgages from £3.76 million to £5.15 million, but bank loans are down from 4.79 million to £1.83 million. Some properties have been sold and leased back and in this way, plus million of 64 per cent. de- benture stock issued this June, it has been pos- sible to finance further developments, one of which is Berkeley Square House. Substantial in- creases in rental income can be expected from the company's 4,234 flats and various commer- cial properties in the future. The net profit after tax for the year to March 31, 1961, rose from £188,090 to £297,210; the dividend of 134 per cent.. is repeated. The 10s. ordinary shares at 47s. are on a low-yield basis of 2.8 per cent., but this should prove to be justified in the future.
Tea and rubber producers in Ceylon are all feeling the effects of the penal taxation laws, which made increased demands of about 60 per cent. on the profits of Tea Corporation. The net profit before tax for the year to January 31, 1961, was £20,527 against £24,847. The output of tea increased and is expected to do so again this year, whereas that for rubber fell, so that the current year's results could be a little better than last, although no increase in the dividend of 9 per cent. is looked for or an improvement le the price of the 5s. ordinary shares, now 3s. 9d., until the Ceylon Government consider- ably relaxes its harsh taxation laws.
The increase in profits tax was largely respon- sible for the fall in Crystalate (Holdings) net profit from £58,608 to £48,042 for the year to March 31, 1961. However, the chairman, Mr. lack Lesser, having held the ordinary dividend at 124 per cent. for the past four years, sees fit to increase it to 15 per cent., which rate is twice covered by earnings. Some of Crystalate's subsidiaries, such as its thermoplastic moulders, returned lower profits, but these were offset by better earnings from another subsidiary, Ebenes- tos Industries. The balance sheet is strong in liquid resources, which strengthen the value of the Is. ordinary shares, now 2s., yielding 71 per Cent.
Although the fall of 34 per cent. in the profits of Scribbans-Kemp for the year to March 31, 1961, was not altogether unexpected, they were certainly disappointing after the 50 per cent. rise of the previous year. It is perhaps too soon Yet to forecast to what extent its new acquisitions will benefit the company, but shareholders will be anxious to hear from their chairman. The net profit after tax was £245,140 against £381,248; the dividend is repeated at 10 per cent. The 5s. ordinary shares have not unnaturally fallen to 5s. 6d.
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