COMPANY NOTES
MR. A. C. DUNCAN chairman of Odhams Press, will probably tell shareholders at the forthcoming annual general meeting how far the printing strike affected the group profits last year. At first glance it seems that the earnings cover for the maintained 171 per cent. dividend on the greatly increased capital has been practi- cally halved. The equity capital was increased by the issue of shares to acquire two impor- tant companies. Firstly, Hulton's Press, pub- lishing Farmer's Weekly, Housewife and various children's newspapers, by the issue of 1,257,144 shares, and secondly the George Newnes group of periodicals and trade journals by the issue of 4,874,800 shares. These take-overs are reflected in the balance sheet where a bank loan of £4,000,000 appears against 'NIL' in 1958, but this has now probably been taken care of by the recent issue of £3,500,000 of 6 per cent. un- secured loan stock. It will be interesting to hear what the chairman has to say about the future, having regard to the two acquisitions which will undoubtedly contribute to this year's profits and so increase the cover for the dividend. The 10s. ordinary shares at 32s. xd yield 5.4 per cent.
Once again Threlfall's Brewery of Liverpool has increased its profits and dividend. This time, for the year to 'March 31, 1960, pre-tax profits at i1,090,945 are an all-time record and the divi- dend, usually increased by 1 per cent. annually, has been stepped up two points to 24 per cent. It is proposed to make a one-for-three share issue which will increase the number of shares avail- able for investment. This is a rewarding share to hold, and even at 110s xd (they were 92s, 6d. before the dividend announcement) the £1 ordinary shares yield 4.6 per cent. Shareholders will have to wait until June 16 for the annual general meeting, when possibly the chairman will say if he expects profits for this year to be as good as last—much depends on the weather— and if he has any plans for linking up with any other brewery, of which there has been a great deal recently.
Mr. Cyril J. Ross, chairman of Swears and Wells, is disappointed that the accounts to January 31 show a slight reduction in the con- solidated profit at £471,120 against £486,630, and an increase in the stock item, which is up by £200,000. But he reports hopefully for the future. Considerable sums of money have been spent on modernising the company's departmental stores which show great promise for the future. Another hot summer should increase the sale of dresses as it did last year, but would naturally depress the sale of cloth coats and furs. The company's fur interests in Canada have been well maintained. Amongst its many subsidiaries, the best known are perhaps Cavendish House at Cheltenham, Sodens, Regent Street, and Corot, Bond Street, London. The 5s.. 'B' ordinary shares at 6s. 6d. yield 8 per cent. on the maintained dividend of 10 per cent.
The great company of asbestos manufacturers, Turner and Newall, advises with the interim dividend of 5 per cent. that the results for the first six months of the current year (to Septem- ber 30) have been satisfactory and such trading conditions are likely to continue for the rest of the year. This is good news and encourages hopes of a higher total dividend, for the company has in the past pursued a progressive dividend policy.
The ordinary shares, 'a blue chip' investment, yield 4 per cent. at the current price of 100s. on the last dividend of 20 per cent., but would yield 4.5 per cent. if the dividend should be in- creased to 224 per cent.
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