Company Notes
By LOTHBURY
sec 1964, group sales of Gallaher, cigarette and ; eq 'bacco manufacturers, rose to £429.6 million, chi ting the duty increase in April and the g prices in August. Gross profits were r, as were net profits—up from £8,448,373 t8,742,000. The dividend was increased from Per cent to 18-1 per cent. These are good es, but it remains to be seen whether, since further increase in duty, the company can only maintain its sales, but also its profit gins. The 10s. shares at 26s. 3d. are a good me stock, yielding 7.1 per cent. It is re- ring to know from the chairman, Mr. Mark tan (who issues an excellent illustrated rt), that profits this year being of the same r as last year would permit the distribution the same rate of dividend and the retention approximately the same amount of money
c business.
major transformation has taken place in lla International over the past two years. In sales for 1964 leapt up to £59 million from million, reflecting the many acquisitions e in that year. The company's interests cover, ugh its subsidiaries, every type of textile ufacturc and process. ICI has a 20 per cent in the company's equity. The chairman, Mr. Hyman, emphasises in his report the need for reorganisation and integration. The most ssful memberc of the group were William ins and Gainsb,:i.ough Cornard—both greatly ased their profits—resulting in a net group t (after tax) of £2,526,033 against £384,828. 171 per cent dividend is covered two and a times. There should be no difficulty, with [It taxation, for the company at least to tain the equivalent rate on the capital h. is to be increased by a one-for-two issue. The 5s. shares at 21s. 9d. yield 4 per ko all-round improvement in trading gave 11 Smith and Son a record year ended nary 31, 1965. Trading profits jumped fr6m )01 4,23,000 to £3,915,000. The dividend is stepped trom 11 per cent to 12-i per cent, twice covered earnings. The group is continuing, at con- WIZ Table cost, its programme of modernisation expansion. A major step has been taken in mg its main warehouse from Lambeth to doe, which will be completed by 1967. This a involves a considerable upheaval to which staff, says the chairman, the Hon. D. J. td Smith, is responding very well. This geover will be largely financed by the sale "S London property. It is intended, in future, flake interim statements; the first of these include six months' sales to October. The A' shares at 55s., yielding 41 per cent, arc a
d investment.
Ifter five years, Babcock and Wilcox, the rmakers, has increased its dividend from r cent to 10 per cent. This is a hopeful sign the future, particularly as the company's draft is still around £41 million. The group now been streamlined and, although profit gins may continue to be low, there are some useful long-term contracts on hand. UK 'acts amount to £117 million, of which the B is responsible for seventeen large boiler • The Australian subsidiary is now making s and the African subsidiary will be busy some years. The I shares have moved up ntlY to 38s. 6d., at which price the yield is
Per cent.
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