Company Notes
LORD MARKS, the chairman of Marks and Spencer, gave shareholders a most interest- ing report at the meeting held last week. One ,Mason given for the small increase in turnover `°r the year ended March 31, 1962, was that there were two Easters in the company's pre- vious financial year. The company is continuing to increase its food sales, which rose by 151 Per cent., and has spent considerable sums on extending the self-service system. The building Programme is going ahead; twenty-one stores ,are being improved and twenty-three were re- ouilt in the past year. It is planned to spend million on building over the next three years. Lille rate of profit expansion has slowed down, out this is in common with other similarly large ail stores. The 5s. 'A' ordinary shares have talleil from 100s. 6d. this year to a much more realistic price of 86s. 6d., yielding 2.7 per cent. °1) the 471 per cent. dividend. At this level they 're an attractive long-term investment.
It Sir lock Campbell, chairman of Booker rothers, McConnell, reports, as forecast, lower Profits for 1961, of £3.31 million against £3.62 Million. His report gives shareholders detailed Mformation of the group's activities which is
most welcome. From this, it is observed that sugar is contributing, on the average, 28 per cent. of group profits, but did badly last year. The shops and wholesale division did better, whilst there was a bumper sale of rum of over eleven million bottles. Shipping interests made a contribution to profits. The analysis of the accounts shows that British Guiana and the West Indies are responsible for 57 per cent. of profits, Britain 24 per cent., Canada 14 per cent. and Central Africa 5 per cent. The chairman does not enthuse about immediate prospects, but future policy is 'designed to lessen the com- pany's interests in the more dangerous areas, so that the future outlook may not be as gloomy as the share price indicates. The 10s. ordinary shares, on which a 10 per cent. tax-free dividend (covered 2.2 times) has been maintained on the increased capital, have fallen to a new low of 16s. 9d., at which price they yield 9.7 per cent.
Mr. A. E. Higham, chairman of Highams Ltd., attributes the sharp fall in profits from £453,344 to £252,796 for the year to March 31, 1962, principally to the reorganisation of the weaving departments of sheeting and flannelette blankets. This change, soon to be completed, will cost, in respect of machinery and buildings, over £800,000. The Lancashire textile industry con- tinues to suffer from heavy imports, at low. prices, of duty-free yarn and cloth. In spite of the difficult trading outlook and the abnormal dislocation of business, the chairman feels justi- fied in maintaining the dividend of 20 per cent., costing £111,713, from a net profit of £109,311. It is proposed to make a bonus issue of one-for- four shares, which will have the effect of con- verting the 4s. shares into 5s. each. The ordinary shares at 8s. yield 10 per cent.
Mr. Jack Adinsell, chairman of Ho4rood Rubber Ltd., reports another increase of 97,500 lb. in the rubber crop, which for 1961 amounted to 1:153,000 lb. Some of the earlier replantings arc now yielding as much as 1,500 lb. per acre. Owing to reduced costs the net proceeds from rubber, which sold at 61d. per lb. less than last year, were only down by £19,356; ffie net profit after tax was reduced from £52,522 to £47,959. The chairman believes that with rising crops this year the company can operate at a reasonable profit at the current price for rubber. The £1 shares at 30s. yield 13.3 per cent. on, the 20 per cent. dividend.
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