COMPAN Y NOTES
EYLAND & BIRMINGHAM RUBBER Ld COMPANY manufactures a wide range of rubber and asbestos goods, indiarubber and water- proofing materials, many of which form part of other manufacturers' goods. It is therefore very satisfactory to find from the preliminary figures that during a difficult trading year the company has increased its trading profit and stepped up the dividend. After an unexplained reduction in the taxation charge there was a net profit of £403,285 for the year ending June 30, 1958, against £336,800. This is equivalent to earnings of 57.9 per cent. as compared with 47.7 per _cent. and certainly justifies an increased dividend of 25 per cent. on the £1.2 million equity capital as against 20 per cent. last year. The £1 ordinary shares look attractive at 59s. 6d. to yield £8 14s. per cent.
Sheepridge Engineering Group has produced a most informative balance sheet and report for the year ending March 31, 1958. The chairman, Lord Aberconway, points out that it is ten years since the company took over the assets of Sheep- ridge Coal and Iron. During that period profits (before tax) have risen from £294,003 in 1949 to £1,040,452 in 1958, and net liquid assets per 5s. ordinary share have increased from 2s. 5d. to 6s. per share. The group has successfully welded to- gether its sixteen subsidiaries, which cover many fields, including mining equipment, tile presses, castings, machine tools, components for the motor industry and earth-rmoving equipment. The excellent profit figures were attained in spite of a decline in the early months of this year in the supplies of components to the motor industry. Sales in this group represent 28 per cent. of the total, while 31 per cent. is attributed to general engineering industries, 25 per cent. to public works and nationalised industries, and 16 per cent. to the aircraft, chemical and oil industries. Sales for the past year have been a record. Net profit was £759,969 against £656,594 and the ordinary divi- dend has been increased by 1 per cent. to 16 per cent. The 5s. ordinary shares at 8s. 9d. ex dividend yield £9 3s. per cent.
William Cory operates as a coal and oil dis- tributor, shipowner, lighterman, and by recent acquisitions has interests throughout the world. The company continues to diversify its business and is apparently financing further expansion out of its own resources, which it is well able to do seeing that on March 31, 1958, liquid assets exceeded £71 million. Net profit for the past year amounted to'41,211,395 against £920,281 for the previous year. Earnings have increased to 35 per cent., from which an ordinary dividend of only 15 per cent, is being paid. This may disappoint the shareholders, but so long as the company continues to finance its expansion from its accumulated funds, it seems that the dividend will be kept down. The proposed interim divi- dend for 1958-59 is 5 per cent., which is to bring it more into line and does not indicate an increased final dividend. However, it may not be unreasonable to look forward to a total dividend of 17f per cent. next year, which was the rate paid for 1955 and 1956. The £1 ordinary shares at 53s. yield £5 13s. 2d. per cent.
Pontin Camps owns holiday camps at Weston- super-Mare, Weymouth, Devon, Chichester and Lowestoft. A camp in County Cork has been sold, but three new camps have been acquired, one of which is at Torquay. The profits earned by this camp have not been included in the last year's figures. The company has changed the end of its financial year to May 31, 1958, so that the accounts presented cover fourteen months. Net profits amounted to £33,775, from which a divi- dend of 20 per cent. is to be paid, which is just covered by earnings. The balance sheet is not strong in cash, but perhaps this situation will improve when the acquisition of recent camps has been completed and these are earning profits. The 2s. ordinary shares at 3s. yield £13 6s. per cent.
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