COMPANY NOTES
TUBE INVESTMENTS have produced re- markable results for the year ending July 31, 1958; the trading profits (after depreciation) were £605,000 higher at £12,579,000, a record for the third successive year. These figures were achieved in what Sir Ivan Stedeford, the chairman, explained in his report was a difficult year. Record figures were achieved by the electrical division, which includes cookers, spin-dryers and water heaters, whilst the steel tubes division produced the best year's results in the company's history. The cycle industry in a year of declining business practically maintained its sales. There have been changes in the balance sheet by the transfer of the aluminium subsidiary to Reynolds TI Aluminium.
which is jointly owned with the American com- pany. NeWikinterests have been acquired and devel- opments extended overseas, thus maintaining the company's exports at a high level. The chairman reports that the trading outlook for the first three months of the year is, not so good; but the com- pany's research laboratories and new training centre will be invaluable for keeping abreast with the times. The fact that the dividend has been increased by 21 per cent. to 171 per cent., and is covered practically four times by earnings, will give stockholders confidence for the future. The £1 ordinary shares at 76s. 6d. enjoy a high invest- ment status, yielding 4.55 per cent. An extract from the chairman's report appears in this issue.
Wallpaper Manufacturers have shown an in- crease in the trading profit of 15 per cent., which, for the first time in the company's history, has re- sulted in a total profit exceeding £5 million for the year ended June 30, 1958. The company has expen- ded considerable sums on research and modernisa- tion, of which £2 million was in respect of rebuild- ing two wallpaper mills and Sanderson's London West End showrooms. The company's paint divi- sion, producing Walpamur products, held its own in spite of keener competition; this also applies to the plastics subsidiary, James Fergusson. The net profit was £1,696,643 as against £1.644,585, resulting in a very good cover of 85.4 per cent. earned for the 27-1 per cent, dividend to be paid. Mr. Alfred Whittle, the chairman, will no doubt enlighten stockholders at the annual general meeting as to future prospects, as the halving of purchase tax on a number of the company's products should benefit sales and profits in the current year. The £1 deferred stock units are to receive a 50 per cent, free scrip bonus issue, which would, if the same rate of dividend is paid, be the equivalent of 181 per cent, on the enlarged capital. A dividend of 20 per cent. could be expected. At I I8s. xd. the deferred stock yields 4.6 per cent.
Bekoh consolidated have suffered an expected decline in profits from £51,900 to €28,200 for the year ended March 31, 1958. This has, of course. come about from the lower prices obtained for the rubber crop of 2,028,000 lb. at I9.8d. per lb. as against 23.4d. for the previous year's crop of 2,003,000 lb. The estimated crop for the current year is 2,208.000 lb. and, with the improvement in the price of the commodity, better results can be expected. The balance of the £40,000 of debenture stock outstanding has been redeemed, so that the dividend of 5 per cent. (against 10 per cent.) must be considered, as reasonable. The 2s ordinary shares are quoted at 1 s.
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