Company Notes
By LorliBCRY Tate and L3le, the sugar refiners, holds its dividend at 10 per cent for the year ended Sep- tember 30, 1965, with a final of 2 per cent, following the two interim payments of 2 and 6 per cent. The interims were paid on the equity capital increased by the issue to United Molasses.
An interim of 2 per cent, owing to tax changes, is declared for the current year. There is little
change in the net profit after tax, up from £4.696 million to £4.759 million. The recent rise in the price of sugar may assist the company in 1966. The £1 shares at 32s. 3d. yield 6.2 per cent.
Cars are still the primary market for Bow- makers, the hire-purchase company, but plant leasing is proving a useful contributor to profits. The net profit. after tax, has increased from £903.000 to £983,000, but continued to be held in check by the high level of interest rates. The maintained dividend of 15 per cent is barely covered by earnings, but should interest rates fall, then earnings could sharply improve. The yield of 7.1 per cent on the 5s. shares at 10s. 6d. is above the average for hire-purchase shares.
The report from the chairman of Aveling- Barford for the year ended September 30, 1965, contains several references to misfortunes the company has encountered which the manage- ment has not yet been able to overcome. How- ever, the net profit after tax is up from £632,789 to £768,423 and the dividend is maintained at 20 per cent. This is a good company with a pro- gressive record. Its principal products are road- rollers, tractor shovels, stone-crushers, grass- cutting machines, dairy equipment and structural steelwork. The 5s. ordinary shares at 17s. 9d. yield 5.6 per cent.
Liebig's Extract of Meat made a lower pre- tax profit for the year ended August 31, 1965, but gave assurance to shareholders for the future, by.inereasing the dividend payment from 13 per cent to 14 per cent. The chairman is reasonably confident of better profits for the current year. The recovery in sales from the Fray Bentos group is particularly encouraging. The 5s. shares at I Is. 6d., yielding 6 per cent, are worth holding.
Correction.-In the note on Anglo Auto Finance last week the-concluding remarks should have read : 'No doubt the company has con- siderable growth ahead; even with the continu- ance of high money rates and corporation tax, this lower rate of dividend should not be in jeopardy.'
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