Company Notes
FRom Mr. F. L. Chapman, the new chairman of Woolworths, we learn that very consider, able sums are going to be spent on capital account during the next few years. The expan- sion of stores and the range of merchandise will undoubtedly, as in the past, be financed from in- ternal resources, which will keep this great or- ganisation in the forefront of the chain stores. Pre-tax profits for 1961 rose to £32,461,783 from £31,203,554; the net result was that the amount earned for the dividend of 35.8 per cent. was practically the same as the previous year at 50.2 per cent. The 5s. shares at 48s., yielding 3.7 per cent., are now near their lowest price for 1961-62 and should prove an attractive purchase for the future.
Mr. Bernard Davis, the chairman of Atlas Stone, reports that turnover has increased for the seventh successive year, but pre-tax profits for 1961 at £185,323 were practically the same as those for the previous year. The company in- tends to spend large sums on capital account in the next two years to extend its range of concrete and plastic building materials and asbestos cement, which will widen its business. Profit margins may be lower this year, but there should be no difficulty in maintaining the dividend raised to 20 per cent. (covered two and a half times) on the increased capital. The 5s. shares at 21s. 3d. yield 4.1 per cent.
Mr. John M. Tilling, the chairman of City and Country Properties, gives a full account in his report for the year to September 31, 1961, on the much-publicised Petticoat Lane site. Plans for this site have been revised and when ap- proved by the LCC, as they are expected to be, will bring greater financial advantages to the company than originally contemplated. it is intended to replace certain residential properties with commercial properties which will be better revenue-producers. The recently acquired sub- sidiary of W. A. Hills and Sons, building con- tractors, is doing well and is expected to con- tribute about £46,000 to the company's profits this year. The dividend of 20 per cent. is again paid for a full twelve months, as against a ten months' period before. Disappointment in regard to the delay in developing the Petticoat Lane site is probably the reason for the fall in the price of the 2s. shares from last year's high of
10s. 104d. to 6s. 6d At this level the shares yield as much as 6.4 per cent. and have obvious scope for improvement with their potential for in- creased earnings.
Mr. J. P. C. Danny, the chairman of Grove- wood Securities, gives shareholders a good re- port for the past year to September 30, 1961, and forecasts a very substantial increase in in- come from property investments in the future. Besides its property interests, many of which are flats, the company owns a profitable chemical business, various hotels and Brands Hatch, the popular motor-racing track in Kent. The recently- acquired Ewbanke Trust, together with further planned development, for which finance has been provided by the Eagle Star Insurance Co., greatly improves the potential earning capa- city. Pre-tax profits were £151,324 on the re- organised and increased capital of £457,051, on which a dividend of 121 per cent. is declared. The Is. shares at 4s. yield 3.1 per cent. and should prove a promising investment.
Mr. Edward Barford, chairman of Aveling- Barford, believes that this year's profits will be as good as last year's. For 1960 they were (before tax) £696,215 and for 1961 £712,825 He thinks that home demand will remain depressed, but the company exports a large quantity of its road rollers and constructional plant to overseas markets. The company has subsidiaries in South Africa, Australia, Canada and France. A new factory was completed at Newcastle-upon-Tyne last year and is now in operation. The capital was increased in 1961 by a one-for-one rights issue and also by a one-for fifteen scrip issue, so that the final dividend of 10.2 per cent., plus the 7f per cent. interim, is equal to a total pay- ment of 14 per cent. On this basis the 5s. shares at 12s. 6d. yield 5.7 per cent.
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