NOT.E6 COMPANY
STEWARTS AND LLOYDS accounts to September 30, 1958, disclose that there has been a heavy drop in profits of the home group of companies, but those overseas suffered only a 5 per cent. fall. The trading profit has fallen from £22,374,000 to £18,353,000 and the net profit from £9,016,000 to £6,642,000. The chairman, Mr. A. G. Stewart, reports a considerable reduction in the demand for casing and pipe-line from the oil industry; exports for this industry account for 25 per cent. of, the total tubes production. The bank overdraft has increased from £4.5 million to £6.1 million and there is a current tax liability of more than £10 million. In spite of these rather depres- sing facts, the chairman has no misgivings for the long-term future and is quite confident that the demand from the oil industry will revive and in due course greatly expand. There is the assurance that the company's bankers will continue their assistance for a limited period, which rules out the immediate necessity for new capital. The dividend - of 11 per cent. is very well covered by earnings of 55 per cent.; the £1 ordinary shares, now 26s. 9d., yield 8.1 per cent. Mr. A. G. Stewart's further statement at the annual general meeting on February 10 will be awaited with great interest.
Asquith Machine Tools have no doubt benefited' from the increased activity in the motor industry and in part from the increased manufacturing facilities installed last year. The £1 million of new money raised in April last for this expansion at Halifax may not yet have been reflected in profits. The increase in group profits (before tax) from £699;600 to £815,100 justifies an increase in the dividend from 25 per cent. (forecast on the enlarged capital) to 30 per cent. It is now proposed that there should be a one-for-one free scrip issue and the chairman, Mr. R. W. Asquith, hopes to maintain the equivalent rate of dividend-15 per cent. next year. The 5s. ordinary shares, 011 the announcement, rose by 2s. to 28s. 9d., and are now yielding 5.3 per cent. The company has s already made an offer to acquire all the capital of Kitchen and Wade, whose chairman does not recommend acceptance; further news will no doubt be given by the chairman, Mr. Asquith. the forthcoming meeting.
Hastings and Thanet Building Society was Ey' ported in these notes last week as haying just acquired the Sheerness and Gillingham Permanent Building Society. During last year engagements 01 the Lake District Permanent Building Society, the St. James's Building Society, and the Cranbrock and District Mutual Building Society, were also acquired. After these transfers combined assets will exceed £30 million. For 1958 the Society's advances to house purchasers increased b ■ £110,000. Total cash and resources were £1,215,000 higher at £3,803,000, and the liquidity ratio is up from 10.7 per cent. to 13.5 per cent a very satisfactory result.
Leicester Permanent Building Society an- nounces the success of their offer of fixed-term -Shares and deposits with their results for 1958. This offer, says the chairman, Mr. A. D. Car- michael, has exceeded all expectations. The results reflect this in the total receipts from investors, which were £10,449,900, an increase of £3,460,700 over 1957. The total amount now invested in fixed- term shares and deposits exceeds £5 million. The rate payable on shares (since October• 1, 1958) has been reduced to 31 per cent. and the rate charge- able for new mortgages to 6 per cent. Advances in 1958 amounted to £8,705,200, an • all-time record. The society presents a strong balance sheet with liquid assets of £7,227,400 against £5,422,100. ,
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