Company Notes
RE report by Mr. Leslie Marler, chairman I of Capital and Counties Property Co., for the year to April 30, 1961, is most encouraging. Over the past five years a steady growth in projects has occurred and this is likely to con- tinue over the next five years. Profits (before tax) for 1961 were £476,991 with net profits of £298,768. The company has many fine blocks of offices, shops and flat property in London, Car- diff, Swansea and Southampton. The Coronation House, EC3, property was sold this year (this offer was too tempting to resist, says the chair- man) and realised a surplus of £156,480: Plans are well ahead for the development of Knights- bridge Green which will, it is thought, provide one of the most spectacular groups of build- ings in Europe. Most important, Mr. Mader makes a forecast (with conservative reservations) of profits for the next five to six years. If that is correct, dividends of at least 50 per cent. or 60 per cent. can be expected by the end of that period. This is substantiated by the fact that 20 per cent, of the equity will be available to the Norwich Union Life Trust and the Pruden- tial Assurance on a basis that will provide them with a 6 per cent. return on their shares to be issued to them above today's price as a con- vertible option for the £18.3 millions of mort- gage debenture stock these two companies will provide for developments. The 5s. ordinary shares at 42s. 3d. yielding only 1.9 per cent, on the dividend of 16 per cent. are obviously an investment for the patient investor who may more than double his money in five years' time. M r. R. W. young, chairman of Moler Products, gives shareholders an excellent report for the year ended rune 30, 1961. Higher productivity, which the company has achieved, accounts for an approximate increase of 20 per cent. in the trading profit of £120,157 against £100,666. The after-tax profit was £64,419. The company's products are principally used for heat insulation; most of their cooler clay comes from Denmark. In future all of this product will come from that country. This arrangement, together with the modernisation of their plant at Colchester, will considerably increase the group's efficiency, says the chairman. In order to bring the issued capital into closer line with the working capital it is proposed to make a bonus issue of one for three shares. It is encouraging for the share- holders to know that the company has a full order book, so that another good year is a pos- sibility. The 4s. shares at 8s. give the useful return of just over 8 per cent. on the 16+ per cent. dividend.
The output of the crop falling below the esti- mates and, of course, the lower price realised for the commodity, were the main factors for a reduction in the profits of Bekoh Consolidated Rubber. The average selling price of the com- pany's output of rubber fell from 27.1d. to 22.7d. and pre-tax profit from £85,108 to £64,218 for the year ended March 31, 1961. Since then there has been a further fall in the price of the commodity, so that there is no certainty of the 121 per cent. dividend being maintained. The price of the 2s. shares at is. 6d. has, to a certain extent, discounted this possibility. The chairman, Mr. A. A. Estall, says that the estates are all in good order and that £40,000 is being spent on replanting.
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