Company Notes
By LOTHBURY
THE final dividend of 10 per cent from Plessey, makers of radio, television, elec- tronics, etc., was better than expected. This pay- ment makes a total of 19 per cent for the year to June 30, 1963, against 15 per cent for the pre- vious year. In view of the strong reserve position, the directors state that they are considering making a scrip issue in the near future. The group pre-tax profit of £11.3 million compares with £6.5 million, and the net profit is more than doubled from £2.59 million to £5.78 mil- lion. This is a great achievement, for since 1961 when Plessey absorbed Automatic Telephones and Ericsson Telephones, there has no doubt been a good deal of reorganisation and co- ordination to carry out. The telecommunications side of the business is now responsible for more than half the group's profits. The company, as the chairman, Lord Kilmuir, states, is now in a very strong position. He confidently says the outlook is promising. The 10s. shares confirmed his confidence by jumping to a new high of 75s. and are now 74s. 6d., to yield 2.6 per cent.
In spite of the loss of Wylfa Head nuclear power contract, Mr. G. E. D'Arcy Biss, chair- man of Fairey, faces the rather uncertain future with confidence. Profits for the current year are expected to be much the same as those for the past year ended March 31, 1963. The trading profit of £742,000 (excluding the profits of Siebe Gorman) substantially exceeded the fore- cast profit. of £650,000 made in February. The largest proportion of this profit has come from Fairey Engineering, the main operating com- pany in the UK. The Belgian company has also contributed to profits following the first de- liveries of the F104G Starfighter for NATO forces. The company has now overcome most of its problems on leaving the aircraft industry and with a planned diversification policy the outlook is promising. Cash resources, however, will need to be conserved so that shareholders should not expect any increase in the present rate of dividend of 22.5 per cent for the current. year. On the excellent results the 10s. shares jumped from 28s. 3d. to 36s. 6d. and are now 32s. 6d. at which they yield 6.9 per cent.
The results for the year to March 31, 1963, from Tap and Die, the machine-tool makers, was rather as expected-a little disappointing. Pre-tax profits are down from £854,000 to £717,000 and the net profit from £376,000 to £324,000, but the dividend is maintained at 20 per cent. The recent investment in Smart and Brown, of Biggleswade, producers of special purpose machines, has proved a good one. Better results are expected from the grotto's subsidiaries in South Africa and India and also its contin- ental interest, but until the demand in the UK picks up it is not likely that any real recovery will take place. It is proposed to make a one-for- two scrip issue but shareholders can hardly ex- pect an increase in the dividend. The 5s. shares at I9s. 3d. yield 5.1 per cent.
James Howden, the manufacturers of equip- ment for power stations, industrial heating plant and steel office furniture, has managed to increase its pre-tax profits by 12.5 per cent to £744,000 for the year ended April 30, 1963. Profit margins have been considerably increased to offset the continuing heavy loss of the Canadian subsidiary, in which the company has
a 51 per cent interest. The net profit rose from £255,000 to £422,000. The dividend is increased by 2.5 per cent to 27.5 per cent and a one-for-four scrip issue is proposed. The 5s. shares at 29s. 6d. yielding 4.6 per cent look fully valued.
Bowthorpe Holdings, the electrical engineers, is increasing its interim dividend from 5 per cent to 5.5 per cent for the current year, ending December 31. When the chairman reported in June, he stated that the group' was trading at a satisfactory level. Last year's final dividend (paid last May) of 13.5 per cent made a total of 18.5 per cent for 1963. The 2s. Ordinary shares are 10s.
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