COMPANY NOTES
METAL BOX CO. LTD., of which Sir Robert Barlow is chairman, owes much of its impressive profit record to the very substantial sums that have for several years been devoted to capital expenditure in regard to research and plant and machinery. This great company's interests cover many forms of packaging, includ- ing paper, cardboard boxes, plastic containers and cans. This is now a competitive field in which the company is well able to hold its own, with cash resources at around £5 million to take care of capital commitments of £3.3 million as fore- cast by the chairman. The second six months of the financial year, ended March 31. 1960, turned in much larger profits than the first six months, and profits are probably continuing to expand. Net profits earned were £3,919,970 (32.4 per cent.) against £3,282.816. Since 1959 there has been a 50 per cent. scrip issue; it is now proposed to make a 10 per cent. scrip issue, and if the divi- dend of 12 per cent. (2s. 5d.) is maintained on the increased capital, as no doubt it will be, then the yield on the £1 ordinary shares at 78s. would be 3.4 per cent. as against 3 per cent. now. This is a long-term growth investment with enormous potentialities.
Another company with packaging interests is Albert E. Reed, the paper manufacturers. The chairman, Lord Cornwallis, reports that con- verted packaging now accounts for 41 per cent. of the company's interests, and wrapping papers for a further 33 per cent. For the past four years the company's profits have been declining, but
for bee
eon £2,- the stet mit spe mci estE on Bri We to Re Eu for sha 5.8 A few months ago Hovis-McDougall, the flour the year ended March 31, 1960, there has n a turn for the better, which may very well tinue. Net profits rose from £2,162,831 to 775,955, giving earnings of 27.8 per cent. for 16 per cent. (3s. 2d.) dividend which has been )ped up two points. There have been recent trovements in production and the chairman aks confidently regarding the future. He corn- Its at length on the possible influence of the tblishment of the European Free Trade Area the UK paper industry and believes that tish manufacturers will be able to hold their n. An agreement has been made with a Nor- gian company to build a pulp and paper mill
make corrugated packaging, of which A r_ ed is one of the largest manufacturers .1 rope. It would seem that better times lie art,. 1 this company, to make their £1 ordinary res at 55s. 6d. an attractive investment to yield per cent.
millers, acquired the business of E. Marriage and Co.; at that time, the chairman, Mr. K. A. E. Moore, forecast that the dividend for the year ended March 31, 1960 would be 11 per cent. against 10 per cent. This has now been announced as 111 per cent. (61d.) and the preliminary figures disclose net profits of £1.2 million against £1.04 million, which gives a 2.2 times cover for the divi- dend. This company continues to expand and it will be interesting to learn from the chairman at the forthcoming annual general meeting how he views the company's prospects for the current year. The 5s. ordinary shares at I 4s. 6d. yielding 3.9 per cent. are a sound investment.
Another record year for Stewart and Ardem, the big London distributors of BMC vehicles in and around London. Pre-tax profits rose by as much as 33 per cent. and the net profit by 42 Per cent. (£275,230) for the year ended March 31, 1960. In November last, the company sold a number of residential properties, realising a sum of £726,000. From this the equity of Eustace Wat- kins Ltd. (the sole London Wolselcy car distribu- tors) was purchased for £340,000, provision has been made for the redemption. next July, of the outstanding 4 per cent. debenture stock of Com- mercial (Stewart and Ardern) Properties Ltd., and the bank overdraft of £30,000 has been converted into cash of £135,000. The chairman, Mr. George A. Royston, advises that the company has plans for a new service station and show- rooms at Watford and at Southend. and is expanding the engineering side of its business, which is now working to capacity. He is hopeful that the results for the current year will not be lower than for the past year, in which case the 2s. ordinary shares at 7s. look a promising invest- ment. The dividend has been increased to 25 Per cent. (6d.) on the capital enlarged last year by a two-for-one scrip issue.
Millars Timber and Trading Co. has been established for over half a century, but many changes have occurred in this company's interests which are mainly in Australia. The company's Profits are derived from three sources: (1) the production and sale of harrah and karri timber from West Australia amounting to 30 peroksgnt. of the group turnover; (2) the mercharfting business of hardwoods and softwoods equals 50 per cent. of turnover; and (3) the remaining 20 per cent. is in respect of the machinery business in India. The company also has interests in this country, the USA and South Africa and on the Continent. The net profit after tax for 1959 amounted to £98,251, from which an 8 per cent. dividend is to be paid on the 10s. ordinary shares Which at around this price may prove a worth- while investment.
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