Company Notes
By LOTHBURY
MR. A. J. PEECH, chairman of United Steel (whose report appears in this issue) em- phasises the value of the company's shares at an amount between 45s. and 69s., but if the govern- ment proceeds with the renationalisation of the steel industry it seems unlikely that either of these figures will be paid to shareholders. As stated last December, the turnover for 'the year ended September 30, 1964, was a record at £149 million. Cost increases have now amounted to an annual rate of £10 million. The dividend is in- creased from 10 per cent to 15 per cent and in addition there is a 5 per cent tax-free capital dividend from profits on investment sales. The bank overdraft has been reduced but the cur-
rent year's, budget is for an expenditure of £144 million against £8.8 million in the previous year. The trading prospects are excellent but the outlook is obscure as nobody knows how the government will treat this company, whose £1 shares at 28s. yield 10.7 per cent on the dividend.
After a reorganisation of the company's capi- tal, Nelson Financial Trust has increased its net
revenue for the year ended October 31, 1964, from £161,566 to £206,858, and is paying a final dividend of 8 per cent on the increased capital, making a total of 15 per cent. The chairman states the value of investments is now in excess of the balance sheet figure of £1,896,913. The 10s. shares at 25s. return 6 per cent.
With a trading profit of just over £2 million, Killingworth Morris, the worsted spinners, is paying a final dividend of 85 per cent on
capital increased by a one-for-two rights issue, making a total of 121 per cent for the year ended September 30, 1964. The net profit, after tax, of £644,919 compares with £505,311. Salts (Saltaire), a subsidiary of Killingworth, improved its trading profit and paid a higher dividend to the parent company of 214 per cent against 18 per cent. Their results can be considered satis- factory in view of substantial stock losses having been written off. The 4s. shares at 7s. yiled 7.2 per cent.
The reorganisation of. plant and production by Hadfields# the steelmakers and engineers, has
paid off. Profits for the year ended October 3, 1964, have jumped from £725,591 to £1,095,083 and the net profit from £341,291 to £533,424.
The dividend goes up from 74 per cent to 9 per cent.' Improvements in production methods have probably offset the new wage increases, amount- ing to about £125,000 in a full year. The £1 shares can be bought at 19s. 6d. to yield 9f per cent. At this price they reflect renationalisation fears.
Bowmaker : in last week's issue the yield of these shares should have read 74 per cent.
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