Company Notes
By LOTHBURY
THE final figures from Steel and Co. are rather T better than was expected when the chair- Nit made his half-yearly report with the interim dividend of 10 per cent, It was not expected that profits would be as good as those of the previous year, which were the second highest in the company's history. However, the net profit of £478,664 for the fifty-three weeks to March 31, 1963, is very satisfactory and compares with £528,912 for the previous twelve months. The final dividend of 10 per cent maintains the total payment at 20 per cent. This company's interests are in steel foundries, crane manufacturing and hiring, and as heating and ventilating engineers and metal fabricators. As the manufacture of capital goods represents the bulk -of the group's business, it -cannot (as the chairman points out) look for a regular upward progression of profit. The past trading year was an exceptionally de- pressed one in Britain, but the overseas com- panies in France, Western Germany, India and Australia have done well and contributed satis- factory profits. Cranes make up two-thirds of the group's total exports. The chairman is naturally cautious about the present outlook, but is confident that when the renewal of capital investment in plant in this country gets under way, then the company will create new profit records. The 5s. shares at 22s. 6d., yielding 4.4 per cent, are rightly priced.
Carreras show higher profits and a larger-than- expected increase in the dividend for the year to June 30, 1963. A small increase in the interim dividend suggested an increase in the final, which at 10 per cent makes a total of 13( per cent against 11 per cent. Pre-tax profits, after an ex- ceptional charge for launching new brands, are up from £2.93 million to £3.69 million, and after a higher tax charge the net profit is up at £1.76 million against £1.42 million. These are excellent results with export sales well up and an increase of 40 per cent in home sales, mainly due to filter-tip sales. The Rembrandt group holds 23 per cent of the Carreras equity. The 2s. 6d. 'B' Ordinary shares at 6s. 70., yielding 5 per cent, are well worth keeping.
Accounts from Bluebird Investments, makers of Bluebird Caravans, for the year to March 31, 1963, show a decline in profits for the third suc- cessive year. Pre-tax profits have fallen from £502,416 to £418,209; the net figure is £185,846 against £250,295. The dividend is maintained at 32 per cent. The company is in the process of merging with Sprite, the makers of mobile tourers, Which company estimates its gross earn- ings for the current year will be not less than £475,000, while Bluebird expects to maintain its profits. On this basis the new group, which will account for more than half the industry's esti- mated annual output of 40,000 caravans with an expanding export business, \should assure the maintenance of the dividend, which on the estimated income would be covered 1.7 times. The 4s. shares at 20s. 3d. yield 6.2 per cent.
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