Company Notes
By LOTHRUBY
IN our last week's issue very satisfactory trad- ing results were reported by A. E. Reed,/ the paper and packaging group, with an increase in pre-tax profits at £12.8 million against £11.8 million. Quite a number of changes were made during the year ended March 31, 1963, when plastic packaging interests were ex- panded On the closure of the Reed corrugated cases factory, at Brentford, a surplus of £700,000 was realised. The Australian interests were ex- tended by the acquisition of two companies, manufacturing paper bags and packaging. Two old mills making corrugated paper at Black- burn and Maidstone are to be closed, but these closures will add to the efficiency of the group. The company's departments will soon all be under one roof at the new head office. Reed House, 82 Piccadilly, WI, when the name will be changed to the 'Reed Paper Group.' At 51s. the £1 Ordinary shares have plenty of scope for appreciation, for at this price the yield is 6.2 per ,cent. quite a good return for this class of share.
• During the year ended January 31, 1963, the capital of W. and J. Glossop was increased by a one-for-six rights issue at 50s. per share, which enabled the company to complete the purchase of Sparkes Brothers and Sparkes Construction. The past year's results are very good, with pre- tax profits up from £133,000 to £162,000. The net profit of £82,000 gives a cover of two and three-quarter times for the 32+ per cent divi- dend, an increase of 21 per cent: The capital is now to be doubled by a one-for-one scrip issue. The company, as civil engineers, also carries out road construction and resurfacing, sewage dis- posal and manufactures 'Glossline,' the thermo- plastic white line used on roads. There has been a steady increase in profits over the past six years and this trend seems likely to continue. The 10s. shares at 96s. 3d., yielding 3.3 per cent, are therefore still attractive.
Accounts for the year to .March 31, 1963, from Allied Land and Investments reveal an increase in the net profit from £50,839 to £55,697, all of which comes from investment in- come, whereas last year's profit included £13,000 from property sales. The company concentrates on freehold and leasehold shop and office property, and has made a number of acquisi- tions during the past year, all of which are let, some to multiple traders. On the development side, results have been better than forecast, in spite of the bad weather. These include sites at Tonbridge, Oxford, West Kirby, Bletchley, Did- cot and Worthing. As to finance, this has been provided to the extent of £1 million by the Refuge Assurance on a long-term mortgage, which company has an option to subscribe for 800,000 shares by 1966. The Is. shares at 3s. 6d., yielding 5 per cent on the 18 per cent dividend, have interesting prospects.
Previous page
