Company Notes
LRD CORNWALLIS, the chairman of A. E. Reed and Co. Ltd., reported fully to shareholders in our issue last week. The following points from his speech arc worth repetition: (1) The group is now firmly established in the Commonwealth, the European Common Market and the Euro- Pean Free Trade Area and, of course, in the UK. Sales for the year to March 31, 1962, have substantially increased. (2) Profits derived from the UK are (as anticipated) lower. (3) He wel- comes the possibility of Britain entering the European Economic Community. (4) There has been drastic reorganisation in the packaging division, while the company's entry into plastic packaging offers a new range of products and services to customers. (5) Overseas interests in Australia, New Zealand, Canada, Italy and Nor- way are progressing favourably. The chairman considers that, having regard to the difficult Period through which the paper and board in- dustry is now passing, the profit of £11.79 Million (subject to tax and depreciation) is very satisfactory. The group is soundly based and is now one of the largest paper-makers in the World. The chairman believes that the group Can look forward to steady and effective growth. Por those investors who can exercise a little Patience the £1 ordinary shares at 42s,, yielding 7.6 per cent., look attractive.
• Sir Edmund Bacon, Bt., chairman of British Sugar Corporation, reports to shareholders for the year ended March 31, 1962; an extract ap- peared in our last week's issue. The Corporation Publishes with the chairman's speech an attrac- t tive illustrated review of its activities. From this it is noted that the beet crops for the past two Years were the highest in the Corporation's history. The beet reception is now highly mechanised at its factories. The Corporation's earnings under its Incentive Agreement with the Government were this year reduced to £I,629,00'7 from last year's all-time record of £2,615,150. The deficiency in revenue is now £19.3 million, an increase of £6.8 million over 1961. There is little chance of the 7 per cent. dividend being Increased under the present arrangements with the Government. The £1 shares are now 22s.
Sterling Industries has, since the capital scheme Was effected last year, become an investment trust controlled by the Cayzer interests, which naturally gives the new set-up a bias towards Shipping. Sir Nicholas Cayzer, Bt., is chairman, With Lord Rothcrwick as deputy chairman. The net profit, before tax, was, at £32,594, nearly as forecast. A note with the accounts shows that Investments costing £2,037,233 have depreciated io i1,834,345, but the accounts also reveal that arising out of the reconstruction scheme is the elimination of losses on investments which stood at £1,015,534 at the end of 1961. No dividend 's payable on the £300,000 ordinary capital in 6d• shares, now quoted at Is.
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