Company Notes
MR. HARRY RAEL-BROOK, chairman of Rael-Brook Holdings, is optimistic for the future. His optimism is justified if last year's figures (year ending April 19, 1961) arc a guide. Pre-tax profits jumped from £256,879 to £332,415, with a net profit of £131,538. This represents earnings for the 371 per cent. ordinary dividend of 107.3 per cent. This is a company that believes in expansion; having started with a capital of £1,000 (now £300,000) twelve years ag0, it is now the largest shirt manufacturer in the UK. So other interests have been acquired to manufacture a wide range of men's wear; these include S. Leader and Co. and its asso- ciates. This group will trade in Italy and all met nber countries of the European Common Market as well as the UK. The chairman be- lie l'es that in a few years' time these interests controlled by Wellpak Investments Ltd. will ex- ceed the original shirt interests of the group. The 4s. preferred shares are convertible on April 19 each year up to 1965 on the basis of one Preferred for one ordinary. This may become an even better option by next year. The 4s. ordinary shares, now 29s. 6d., yield 5.8 per cent.
A group that has been rapidly expanding recently is the Tap and Die Corporation, Makers of engineers' small tools; in fact, it is easily the largest exporter of screwing tools from the UK. Three overseas manufacturing corn- Patties have been formed, while at home the Inter- national Twist Drill Co. and Smart and Brown of Iliggleswade have been acquired. It is intended tu fund the small bank overdraft of £181,165 and Provide for future expansion by an issue of stock, The net profit after tax was 070,410 for the year ended March 31, 1961, as ..ga; knst £228,509. A recent property revaluation 'mows a surplus of £680,000 over the book value. most encouraging point made by the chairman, Mr. D. G. N. Lloyd-Lowles, is that the company is • well IA laced to sell competitively in the / 'opeanpCommon Market and that sales for the current year are ahead of thse for theam se period lastrunning year,well o so that profits should the be higher. This promising outlook makes Ine Ss. shares look attractive at 16s. 6d. to yield 6.2 • Per cent. on the thee past two years.
pretax Lord discloses a large increase in the Prelax profits for the year ended May 27, 1961: 43so „ 0,886 as against £193,076. But this higher 0gures includes, for the first time, profits from th te, Cyril Lord Carpets Co. and its subsidiaries. in is i_not possible to decide from the accounts Nuat proportions the textile and carpet groups contributed to the total profits of the group. But 1 the balance sheet does disclose an increase k in the bank overdraft from £952,000 to £2.05 million, plus a special bank loan of £50,000 re- payable in a year. This will be partly taken care by the recently arranged loan of £1 million r t lin71 Burlington Industries Inc. of North Caro- l- Conditions in the spinning and weaving sections have been somewhat unfavourable, Whilst the carpet section has experienced a de- dining demand. However, after three years of losses in 1957-59, it is gratifying to see that profits 1grd on the equity capital (controlled by Mr. 1,1. and his associates) were 10.2 per cent. in • '0 and 23.1 per cent. in 1961. The outlook Lot ti the future is reasonably hopeful. Only the Preference shares are quoted around 12s. 6d. 4! hid) price the yield is 10.4 per cent.
Previous page
