Company Notes
BRITISH AMERICAN TOBACCO produces a finely illustrated report for the year ended September 30, 1961, which has proved to be the best year in this great company's history. The chairman, Sir Duncan Oppenheim, will give his report at the annual meeting on March 22, when it will be surprising if he does not refer to the recently published medical report, relating smok- ing to lung cancer. The BAT group need have little to fear from' this report, as most of its products are sold in more than fifty different countries overseas and arc manufactured in many of them. The increase in the pre-tax profit figure from £62.5 million to £69.5 million was mainly due to increased sales in Europe and profits from many of the overseas subsidiaries. The available net profit at £12,151,000 was £363,000 higher than last year. The total ordi- nary tax-free dividend of 221 per cent. absorbs £10,691,00. The 10s. registered stock was as high as 73s. in 1961 and can now be bought at 58s. 9d. to give an attractive yield of 6.2 per cent.
The Britannic Assurance Co. is paying a final dividend of 2s. 9d. per 5s. share, making a total of 5s. 3d. tax free for 1961, the same rate as paid for 1960. Since the recent announcement of the free scrip issue of six-for-five the 5s. shares have moved up to £16f to yield 2.5 per cent. This issue is being made by capitalising reserves to the extent of £523,800, thus increasing the issued capital to £1,023,800 and enabling the company's shares to qualify for trustee status under the Trustee Act of 1961.
The City and Metropolitan Building Society reports that the net flow of funds to the Society for the first eight months of 1961, as was to be expected, slowed down following the credit re- strictions in July. Investors' balances increased by £119,339 and mortgage advances of £350,140 were made; of this amount 98.82 per cent. was lent on the security of owner-occupied residen- tial property. The balance sheet shows an ex- cellent state of liquidity and liquid funds represent 15.3 per cent, of total assets. These funds amount to £325,013 and include short- dated loans, redeemable British and colonial securities, and £92,928 in cash.
The Wagon Finance Corporation is one of the very few HP finance companies able to show an increased profit for 1961 over 1960. The chairman, Mr. E. S. Bonsor, wisely decided three years ago on a policy of not accepting doubtful business through its operating sub- sidiary, Union Transport Finance Ltd. That has proved to be well worth while, although the amount of business transacted in 1961 was less than that in the previous year. The net profit for the year, after tax, was £228,958 and pro- vides a cover of 29.2 per cent. for the 21.3 per cent. (4s. 3d. per £1 share) dividend. With some improvement in the motor trade this year, the company should be able to maintain its rate of profit. The £1 shares at 93s. 9d. give 4.5 per cent., a fair yield on a share of this nature.
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