COMPANY NOTES
DRITISH AMERICAN TOBACCO COM- PANY continues its impressive trend of rising profits, trading for a sum of £62,630,870 for the year ending September 30, 1958, with a resulting net profit of £25,473,022. The tax figure is lower this year, but even so it is a formidable amount at £27,629,113. The company sells its cigarettes and tobaccos almost entirely overseas, and the American subsidiary, Brown and Williamson, probably earns a large percentage of the total profits, but shareholders are not given any break- down of sales and profits in the many countries in which the company is operating. However, it is immensely strong, as liquid resources have moved up from £42 million to £58 million over the past year. Against the issued ordinary caPital of £47.5 million, total reserves now equal £178.2 million. The assets are the equivalent of 48s. 9d. for every 10s. ordinary share against the market price today of 53s. 6d. This is not surprising when we find that during the past seven years £98.8 million have been retained in the business from profits. There was a scrip issue of 1 for 2 in 1953 and I for 3 in 1957; even so there is plenty of scope for further issue in the near future. The last dividend was 15.8 per cent. tax free plus a special inter ni of 1.7 per cent. tax free, making the effective rate 17.5 per cent, tax free, which is covered by earn- ings of 52.9 per cent. With immense reserves al d potentialities and a large cover for its dividend the shares at 53s, 6d. to yield as much as 5.8 per cent. are still very attractive.
Messina (Transvaal) Development Compa has once again produced a detailed report on mining operations with the statement of accounts Ore mined for the year to September 30, 198. was 907,250 tons, a small reduction on the pre. vious year, but costs were reduced by £11 per tot to £120 per long ton at the Messina Mine, whereat at the Umkondo Mine costs per ton were higher at £151 owing to the lower average copper con- tent of the ore. Group profits were £1,105,348 as against £1;730,327, and the net profit was dov 11 from £1,159,674 to £687,141. The output from the subsidiary company, MTD (Mangula) Ltd., w restricted, but the parent company has now so d a large number of its shares, reducihg its interest to 76 per cent. This will also have the effect of bringing down the very considerable bank over' draft of £1,259,010, and the position will be further improved by this July, when £650,000 of options at £2 each may be exercised.
Eastbourne Mutual Building Society has ft the effects of the credit squeeze, for share wit drawals slightly exceeded subscriptions 1 £94,798, whilst the balance due to depositors the end of the year was lower by £58,544. It w therefore to be expected that mortgages advance would be lower; they were £676,438 again £822,745 for 1957. However, reserves at £372,91 show a higher ratio at 5.1 per cent. against 4 per cent. and there is little doubt that this litr1 old-established society will once again be able I expand its business during 1959.
Rugby Portland Cement Co. Our reference I the Is. 'A' shareholders was not entirely correct our note of last week. Their participation in the ii profit of the group for any year is dependent upc two conditions being fulfilled, i.e., the gro: amount distributed on the ordinary shares mu not be less than £300,000 and the net profit the group must not be less than £900,000. Th latter figure is increased by 6 per cent. of ill proceeds of any new issue. Therefore, when the basic conditions are fulfilled"; the 'A' 'shares WI then benefit by 20 per cent. of the amount b which the net profit earned on the new capiti subscribed exceeds 6 per cent. of this new mone] It )t
11
Previous page
