AFINAL payment of 12 per cent from Grove- wood Securities increases the dividend from 15 per cent to 18 per cent for 1963. Profits have increased from £166,000 to £205,000 and on the strength of these good results a one-for-two scrip issue is proposed. This is a company with in- terests, now more equally balanced, in chemicals, property, hotels and car-racing tracks. It is the last-mentioned that look like producing substan- tially increasing profits. The recent acquisitions of Snetterton, Mallory Park and Oulton Park race tracks will help in this respect, especially as the company will be holding the European Grand Prix at its Brand's Hatch track this year. Pre-tax profits from the property group increased from £125,000 to £167,000; 40 per cent of the portfolio is now in non-residential property. The chairman states that he is hopeful of paying a dividend in excess of 12 per cent on the in- creased capital; this makes the Is. shares at 4s. 104d, an attractive proposition.
The chairman of Killingball (Rubber) Develop- ment Syndicate reports an increase in the rubber output for the year to June 30, 1963. In fact, this trend is continuing into the current year. The income from the company's tin interests has re- sulted in a considerable increase in profits and is expected to reflect higher profits in the current year. Net profits after tax amounted to £26,000, from which a final dividend of 60 per cent is being paid. making a total of 75 per cent. The 2s. shares at 10s. give a good income return of 15 per cent with reasonable prospects.
I like the prospects of Hallmark Securities,' which is paying an interim dividend of 20 per cent for the year ending April 30, 1964. This compares with the previous equivalent of 17 per cent after adjusting for the one-for-one scrip issue. Higher profits are expected for the current year from the housing division and from the hire- purchase subsidiary, Twentieth Century Banking. A. J. Wait (Holdings), the builders, acquired last year, are also expected to contribute higher profits. The chairman expects to pay a total dividend of not less than 40 per cent. On the basis of the forecast dividend, the Is. ordinary shares at 7s. yield an attractive 51 per cent.
Qualcast, the lawn-mower manufacturers, light engineers and foundrymen, has always been a favourite of mine. The company continues to progress, as indicated by the chairman's half- yearly report. For the last six months of 1963 the foundry tonnage • is up by 23 per cent and stocks of lawn-mowers are at a low level. The chairman also reports that the demand for kitchen furniture has exceeded the most opti- mistic forecasts. In fact, all sections of the group are doing well. Allowing for last year's increase in capital by a bonus issue, the scaled-down dividend would be 16.8 per cent, on which the 5s. shares at 25s. yield 3.3 per cent, but I would expect a higher payment for the current year.
Four years ago Klinger Manufacturing, the textile engineers, were far-sighted in expanding the machine-building and yarn-processing de- partments, to meet the expected huge demand for textured synthetic yarn. This has materialised and the company is now reaping the benefit. The company's new machinery, known as Pinions, is now being operated in the US and Canada and, of course, in its own factories in the UK. A sales company is now operating in New York and Mount Pleasant, NC, and a similar company is being formed in France. The chairman, Mr. W. G. Castell, reports that the hosiery and knit- wear sections are operating very satisfactorily and that the company's new year has got off to a good start. The after-tax profit for the Year ended Sep- tember 28, 1963, amounted to £215,372 against £130,333. The 5 per cent interim dividend is fol- lowed by a final of 25 per cent, making a total of 30 per cent. There has been considerable specula- tion in the 5s. shares recently. They have been as high as 62s. 6d., but now at 47s., yielding 3.1 per cent, there is scope for further appreciation.