Company Notes
Slit AMBROSE KEE\ IL, chairman of Fitch Lovell Ltd., opens his very full review of the et°111Pany's trading year ending April 28, 1962, y‘olY referring to the late president of the company, I" "ugh Fitch, who died in his eighty-ninth Lear, having served the company so well for 'rth5ro than seventy years. The chairman has been thes.Ponsible for the recent dynamic growth of isIS company over the past few years, which clear Profits from the progressive trend of th —ts shown in the financial statistics in Cefully illustrated annual report. Net profits efore tax increased by as much as 32 per cent. abnd after tax (excluding new interests acquired) dY 16 per cent. The group has profited by erisMing of its less profitable interests, such as A rtain retail concerns and their holdings in the 'Argent • its . Inc, and has concentrated on increasing 11' Interests in supplying the profitable super- b fieId. This was made possible last year the acquisition of Green's Stores (Ilford) 'eh brought into the organisation 136 super- mrarkets obable and self-service stores. It seems that the company will soon need new ()ullauce to consolidate its rapid growth, as kG2tst"ding capital commitments amount to 111415)300 and the bank overdraft exceeds £2 mn, This will be arranged at the right th inent, says the chairman. He also reports silo': we first trading months of the current year Pet sv a good all-round improvement. The 16-i 40 t. dividend is covered by earnings of .over of Per ,cent. It is proposed to make a scrip Issue ralne In ten shares and it is hoped that the same tireereaosfeddeiavpideanld will be maintained on the
Capital, although it is not certain that
tinu Per cent. tax-free bonus will be con- sha This is the type of company in which tre renolders can be assured of a rising profit the Under expert management and therefore shaY can in confidence hold on to their 2s. 6d. furtr,es, now 14s. 3d., yielding 2.9 per cent., for "er appreciation in income and capital. Mr. W. J. Jenkins, chairman of Metropole Industries, an engineering group, produces a surprisingly optimistic report for the future. He states that every one of the group's companies (engineering, packaging and suppliers to the engineering trade) is prosperous and profits are rising all round. Last year the company acquired A. King & Son, which has proved to be very profitable and was largely responsible for the increase in the pre-tax profit from £203,305 to £415,062 for the year to March 31, 1962. There is an amount of convertible stock, which if fully converted into ordinary shares in 1963, will reduce the earnings to 60 per cent, on the 2s. ordinary shares, which at 14s. 6d. yield 6.2 per cent, on the 45 per cent. dividend. This is taking an extreme view, but holders of the conversion stock now at 114 are on a safe wiplpt. This price values the 2s. shares on the fir tt conver- sion terms at 13s.
For the first time the cover of the annual report (for the year to March 31, 1962) of Unigate bears their armorial bearings, which they have recently been granted. There was little change in the pre-tax trading profit, with a higher tax charge; the net figure was £3,069,535. Milk production of the group for 1961-62 was a record, while the company continues to lead the field in infant food Cow & Gate products. Its other products, under the brand names of 'St. Iver and 'Farmer's Wife,' have further increased their sales. The chairman, Mr. G. Ivor Price, reports fully on the company's various interests overseas and at home including its wholesale and retail grocery business and its transport and engineering concerns. Group resources are strong with a cash flow of £4,330,000. There are now 71,000 shareholders and 37,000 employees. The 55. shares at 14s. 3d. have sound future pros- pects and, yielding 4.8 per cent. on the 14 per cent. dividend, arc an excellent investment.
Following upon the recent announcement by the Leicester Permanent Building Society that it will be reducing its lending rate to 61- per cent., the Halifax Building Society now states that it will be reducing its rate to 6 per cent.
but not until next February. This reduction will be much appreciated by young house-purchasers and it is hoped that other societies will quickly follow suit.
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