Company Notes
THE profit growth of Crept Uoiversal Stores remains unchecked, in spite of the genera/ setback in profits reported by retail trades and restrictions on hire purchase. This remarkable achievement with its very large mail-order busi- ness can be attributed to first-class managenaug under the very able chairmanshiP of Sir Isaac Wolfson, Bt. Pre-tax profits for the year re March 31, 1962, were 6 per cent, up at £27 million and earnings increased to 84 per cent. for the dividend of 40 per cent., an increase of 21 per cent, on the previous year. Last Year the company sold its interest in Mount Royal for £2.25 million, but in spite of this, income from investments has risen. The net cash Posi- tion has also been improved considerably from
£9 million to £14 million. With the increased divi-
dend there is a one-for-three scrip issue. If the 40 per cent, dividend rate is maintained on the larger capital, the 5s. 'A' ordinary shares at 59s. 3d. yielding 3.4 per cent., should still offer scope for further appreciation on such a dynamic investment.
When the directors of Smith's Potato CrisPg Ltd. declared the interim dividend last December they warned shareholders of the ceptionally high potato costs, which were bound to affect the full year's results to March 31, 062. The result has been a fall in the net profit after tax from £876,158 to £565,798. The Present potato shortage and poor crop will again affect profits for the current year; these conditions are the worst experienced during the forty-two yearg the company has been trading. However, this situation is not likely to continue indefinitelY, as from past experience the company has nit: variably recovered from these setbacks. handles 80,000 tons of potatoes per annum ah" distributes a million tins of crisps per week. Its subsidiaries, Tudor Food Products, and the cern; panics in Holland and Australia, have increaseo their sales and have contributed to profits; a nevi_ company was formed in Ireland last year. The company has a long and successful record; disci; dends have always been conservative. The coy! for the maintained dividend of 55 per cent. On- eluding 10 per cent, bonus) is considerablY re- duced. The chairman, Mr. F. Le Neve Foster, who retires from the board next year after lohrigt and valuable services, believes that this PaYmeth is justified, owing to the exceptional streng of the balance sheet, and that the future ott" look will improve. The 5s. ordinary shares hat; fallen from a high point of 68s. this year to _t present price of 54s. (yield 5 per cent.), be :1 which level they look a good purchase for future. Mrs. E. Phillips-Marten, chairman of BYtirti A:lattufacturing Co., attributes the fall in profits or the year ending October 31, 1961, to t!allsually heavy provision for stock deprecia- tion and to reorganisation, which included the ieinging-down of an unprofitable department. The net 'Profit, after all provisions, amounts to only 4344 against £19,827. But having regard to the ,e,n111Pany's strong liquid position, the directors have decided to pay a final dividend of 21 per cent., making a total of 5 per cent. against 13+ Per cent. Until the company can widen its ac- i' tivities by profitably employing some of the , *000 (approximately) liquid resources, there ' ttlis little likelihood of an upturn in profits 67,14ktss its trade considerably improves. The 2s. `...41•aarY shares are quoted at 2s. to 2s. 6d. ..wletal Industries' accounts for the year to 0, r-reh 31, 1962, have advanced a step further 117_ their presentation since last year. Each sec- un is analysed as to (a) trading profit, (b) turn- over (c) profit margin (d) net assets and (e) return on net assets. This breakdown discloses that the electrical and electronic control com- panies account for 67 per cent, of the net assets of the group and produced 76 per cent, of the profits. The return on these assets was as much as 23 per cent, against only 4 per cent, on the assets employed by the metal recovery and other sections. The trading profit at /2,451,993 showed an increase on the previous year. This rate of progress seems likely to continue, but until there is an economic change for the better. the metal recovery, hydraulic and mechanical engineering sections are likely to be a drag on the overall profits. The chairman, Sir Charles Westlake, mentions that most of their factories are working to capacity, but orders are now harder to get. He makes an interesting point that• amongst the large number of the company's stockholders 58 per cent., compared with 32 per cent. in 1952, are the institutions, which is an expression of the City's confidence in the com- pany's future. lie promises to give stockholders a fuller statement on the future outlook at the annual general meeting on September 11. The dividend of 15 per cent. is repeated; this is covered by earnings of 21.1 per cent. The if shares at 49s. 3d. may not have immediate growth prospects, but give a good return of 6.1 per cent.
Previous page
