Company Notes
By LOTHBURY
MR. T. J. CULLEN, chairman of London County Freehold and Leasehold Properties, is not unduly concerned should there be a change of government. For, as he points out in his report, the.company's flats are well maintained and rents have never been excessive. Further, the stake in commercial properties has recently been increased so that the company now has a balanced portfolio. Investments in this type of property were around £2 million during the year ended March 31, 1963. Overseas interests in Australia, Canada and Rhodesia are progressing well. An important point for the future is that new tenancy agreements will provide a sub- stantial increase in gross revenue over the next two years. The outlook is certainly most en- couraging. Once again gross receipts from rents have increased and pre-tax profits are up from £1.629 million to £1.808 million. The net profit of £822,000 compares with £730,000. The dividend rate has been progressive, rising from 10d. in 1959 to Is. 6d. in 1963. The 10s. ordinary shares at 33s. give a good yield of 4.5 per cent on the 15 per cent dividend
In his annual report, the new chairman of Smith's Potato Crisps, Mr. T. Swan, dispels the gloom that was spread with the interim dividend (maintained) last year when sub- stantially lower profits for the year were fore-' cast, due to the exceptionally high potato costs. Purchases cost the company over £1 million more than the average price that had been paid over the preceding three 'years. Consequently the' group trading profit fell from £1.035 million to £886,000 for the year to March 31, 1963, but owing to a lower tax charge the net profit is slightly 'higher at £587,000 against £566,000. The' total dividend for the year remains unchanged at 55 per cent.. The heavy capital expenditure con- tinues—during last year no less than £1.5 million was spent on fixed assets. It is therefore intended in the near future to raise a debenture of £21 mil- lion. The chairman is confident that 'Smith's' can successfully meet new competitors in the crisps business. New lines have been introduced and the recently acquired Tudor Food Products is doing very well. The Australian and Dutch subsidiary companies both increased their sales last year. The first half-year's results of the group for 1963-64 are expected to be much better than those of the previous year. The company has a fine record, first-class management, and a strong balance sheet. The 5s. shares at 62s. 6d. have recovered in price, but none the less they are still an excellerit investment yielding 4.4 per cent.
The group trading profit for 1962 from
Dorada Holdings improved to £245,000, a very satisfactory result, particularly as non-recurring provisions had to be made in writing down motor vehicle stocks, due to the purchase tax cuts. The group owns E. J. Baker (Dorking), main dealers for Vauxhall, Bedford and Scammell, also garage !I interests at Slough, Bristol, Bath and Frome, two hire-purchase finance companies and an engineer- ing business at Kettering. Both the h.p. companies ' contributed to profits. The dividend is increased from 22f per cent to 24 per cent and this latter rate the chairman, Mr. P. A. V. Cooper, expects (at least) to maintain on the capital now to be increased by a one-for-eight rights issue at £1 for each 5s. ordinary share. The company's main business is in its motor vehicle sales section which should show an improvement this year. The 5s. shares at 21s. yield 5.7 per cent.
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