COMPANY NOTES
THE HONGKONG (SELANGOR) RUBBER COMPANY is unusual in that its issued capital is now only £11,250 in Is. shares and yet its rubber estate stands in the balance sheet at a cost of nearly £47,000. It also owns lands leased to the Hongkong Tin Co. which have produced, in royalties, over £20,000 for each of the past three years. The 1957 rubber crop was 201,000 lb. against 189,000 and realised a net sale average price of 22s. per lb. The rubber crop is expected to expand by further replanting; there are now only 105 acres of old seedlings remaining. It has not been difficult to maintain the dividend of 140 per cent., which is equivalent to 70 per cent. last year when the capital was reduced by a 50 per cent. return, as it was in 1951. Even though there may be a reduction in revenues for the current year, the present price of the Is. ordinary shares at 6s, 41d. seems to discount this, for the yield is nearly £22 per cent.
Since a loss was incurred in 1955-56 when shareholders went dividendless Metal Industries has made a remarkable recovery under the chair- manship of Sir Charles Westlake. Trading profits for the year ending March 31, 1958, are up from £1.63 million to £1.76 million. Net profits after tax were £799,753, which represents equity earn- ings of 32.75 per cent. to cover a total dividend of 14 per cent. In 1951-52 until 1955 the dividend was only the equivalent of 12 per cent. on the present capital. For the past three years share- holders have received 9 per cent. with an addi- tional dividend of 5 per cent. last year to make up for the loss of dividend in 1956. The electrical division and the shipbreaking yards have con- tributed substantially to this record profit. The chairman does not think that the current year's profits will be any worse than those of last-year. The balance sheet discloses strong cash resources of about £1 million, most of which arose through the sale of Sentinel Wagon Co. to Rolls-Royce, to which will shortly be added a further £2.15 mil- lion from the sale of the company's holding (its last lirik) in British Oxygen. The £1 ordinary shares rose about 2s. on the results but can still be bought at 33s. 3d. to yield £8 7s. per cent.
The report of Geo. W. King for the year end- ing December 31, 1957, makes interesting reading. We will mention only three salient 'points. Firstly, the trading profits have increased from £230,130 to £390,886 due to a substantial increase in the company's turnover and the concentration of work at the modern Stevenage factory. Secondly, it is proposed to bring the issued capital more into line with the capital actually employed in the business by capitalising £127,500 of the reserves on the basis of one new ordinary share for every three ordinary or 'A' ordinary held. Thirdly, all the non-voting 'A' ordinary are to be converted into ordinary and so will carry a vote. This is an unusual resolution, but one that is to be highly commended. The company has for long been associated with the motor industry but has con- siderably expanded its interests into other fields, including agricultural and material handling equipment, doors and door gear, and recently remote-control types of equipment for nuclear development. The Chairman, Mr. Donald M. King, reports that competition is still very keen, but order books are very satisfactory and export business is on the increase. The company is in- creasing its authorised capital by £250,000, which may foreshadow an issue of shares before long, as liquid resources are somewhat low for a com- pany pursuing a progressive and expanding policy. The 5s. ordinary shares at 12s. 3d. yield £5 2s. per cent. on the dividend of 12+ per cent.
In his annual statement the chairman of L. Harris (Harella) mentions that the current year has not started too well as the bad weather and the recent bus strike have not helped the company in regard to the sale of ladies' and children's clothing, which the company retails and manu- factures. However, - last year the company in- creased its profits under difficult conditions and the dividend has been increased from the equiva- lent of 21+ per cent. to 221 per cent. This well- managed group continues to expand, having acquired Leader Fashions and opened five new shops last year. The 4s. ordinary shares are fairly priced at 1 Is. 3d. to yield £8 per cent.
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