Company Notes
By LOTHBURY
MR. F. V. WALLER, chairman of the Adwest Group, with his report for the year ended June 30, 1964, expects higher profits for 1964-65. The order book, he states, is up 15 per cent on this time last year, and the property-owning sub- sidiary will make a significant contribution to profits next year. Pre-tax profits for the past year increased from £472,594 to £558,005 and the dividend by 24 per cent to 17+ per cent. Broken- down profits from the engineering interests are shown as:* electrical and light engineering 50 per cent, agricultural and industrial equipment 26 per cent, automotive and aircraft 24 per cent; in addition, net rental income from letting properties accounts for 7 per cent of total profits. The company has a great potential in the ulti- mate development (in conjunction with Town and City Properties) of the Woodley Airfield. The 5s. shares at 16s. 9d., yielding 5.5 per cent, should be held.
Good results have been achieved by the British Land Company for the year to April 30, 1964. Net profits rose from £258,104 to £280,111, in spite of a drop in the surplus on realisation of trading properties from £14,855 to £3,056. The company's interests through its subsidiaries are made up as follows : shops and commercial properties 37 per cent, residential 36 per cent, offices 17 per cent, factories and warehouses 7 per cent, ground rents 3 per cent. The company has a substantial stake (about £560,000) in the development of an office block in Sydney, Aus- tralia. The chairman expects the rental income to be again increased this year. The 5s. shares at 8s. 14d. yield 5.9 per cent on the 10 per cent dividend. Sir Aynsley Bridgland, chairman of Regis Property, points out in his report for the year ended June 30, 1964, that the full rental income has not yet been reached, as shop and office leases due to fall in soon carry rents well below the market value. The group's net profit (after tax) amounted to £412,864 against £350,484 and the dividend was raised 1 per cent to 9 per cent. The company's properties, which include resi- dential flats, are kept in a high state of repair and are situated in and around London. The 5s. shares, now 7s. 9d. xd., yield 5.6 per cent.
The results of Peter Brotherhood, manufac- turers of machinery and power plants, for the year ended March 31, 1964, did not quite come up to tge excellent results of the previous year, but the dividend has been maintained at 30 per cent. Prospects for the current year are, how- ever, encouraging: £100,000 worth of new plant and machinery will now be fully employed and the company has obtained a sub-contract for polystyrene which is to build the £30 million terylene plant for Russia. The diVidend, covered 1.8 times, gives the 10s. shares at 60s. a yield of 4.9 per cent.
On the re-aranged capital Associated British Engineering is back in the dividend list with a payment of 6 per cent for the year ended March 31, 1964. As the largest part of the company's business is that of manufacturers of marina engines, the future cannot be' said to be very bright. However the Bergius-Kelvin subsidiary seems to hold out best hopes for the future. Its new Kelvin-Diesel engine now in production has received (as a marine and industrial engine) a highly satisfactory demand. The parent's pre- tax profits were up from £118,652 to £150,383. There is not much to go for in the 2s. 6d. shares around par, until the fortunes of the shipping industry substantially improve.
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