Market report
CUSTOS
The stock market's drift was checked by good results from 'blue chip' companies. The Finan- cial Times index had dipped under the 400 mark (29 points below its peak) when the Unilever results were announced: they turned the whole market round.
There followed news from two of the biggest insurance companies. General Accident's United States underwriting results showed a slight im- provement. Then Commercial Union announced higher profits and a 5 per cent increase in the dividend, after eight years at 45 per cent. Under- writing results show a £2.1 million improve- ment, from a £1.1 million loss to a £1 profit, although the underwriting loss in the United States widened. Commercial Union shares rose 4s, to 60s, and other composite insurance com- panies moved with them, notably Phoenix, up 16s 3d to 187s 6d.
Courtaulds' latest bid is for Contour, stocking makers who supply Woolworths. Nottingham
Manufacturing, often thought of as a name on Courtaulds' shopping list—they are major suppliers of Marks and Spencer—withdrew their own bid, for licking Pentecost, promptly on hearing that the Nicking Pentecost directors would not recommend it and had put out a strong profit and dividend forecast—the normal defensive barrage in this situation. The barrage had taken Nicking Pentecost up to 13s 3d: the withdrawal of the bid put them back to Its.
Company notes
Unilever's preliminary figures accompany a dividend increase of 3d on the 'Limited' stock, making the total for the year Is 6d as against Is 3d. Fourth-quarter sales were up 4 per cent, and devaluation has helped. Profit after tax rises from £58.9 million to £79.8 million: of this improvement, £8.4 million is attributable to devaluation.
Hoover have also announced higher profits and an increased divided. Profit before tax rose from £5,161,542 to £5.884.559. after crediting £207,000 as 'part of exchange profit arising on devaluation.' A final dividend on Is 6d makes 40 per cent, against 35 per cent, for the year. Without the easing of hire-purchase restrictions last summer, the 1966 profit level would prob- ably not have been reached; but the closing months' figures gained from the introduction of four new models.
Mr Hugh O'Connor, chairman of Gillett Brothers, the discount house, declines to make any forecast for the current year in the absence of 'a clear statement of Government policy.' The company shows a massive bill book, up £17 million at £75.7 million, and bond holdings down £10 million to £32.4imillion. With an 8 per cent Bank rate, he says. 'our investments, historically cheap, are ephemerally an expensive luxury.'
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