Company Notes
LORD CLITHEROE, chairman of The Mercantile Investment Trust, tells his 10,000 ordinal') shareholders that for the year ended January 31. J961, his company has had a successful year with record earnings, but that they must not think that profits will increase every year without setback. The four 'Mercantile' companies were merged last year, so that there are now 30,464,000( ordinary shares of 5s., with a break-up value of 24s. 9d. each. This must now be the largest invest' ment trust in the City, with funds spread over more than 500 companies, and a very low management cost of 2.95 per cent. of the revenue, This amounted to £1,126,915 net, which means earnings of 24.2 per cent. on the increased capital. An interim dividend of 6 per cent. was paid last August, the final is 13 per cent. making a total of 19 per cent.---cquivalolt to 82.7 per cent. of this company's revenue. The report shows that the net revenue has grown from £151,197 in 1950 to £537,174 in 1960, and (since the merger) to £1,126,915. T iS company is under excellent management, whose first consideration is the protection of their share' holders' interests. There is a wide market in the 5s. ordinary shares, which at 26s. 6d. yield 1/54 per cent. Since the last report the issued ordinary capital of British American and General Trust has boil increased from £1,687,500 to £3 million. Th, has been an increase in the gross revenue 1/1 £123,123 to £538,683. This amount the chairm Ln.., Mr. G. P. S. Macpherson, expects will he III' creased somewhat in 'the current year. beca liqc the company will benefit by the full employnvot of funds raised by cash issues last year. He state' that funds invested in the US (mainly in utilii) equities) have been increased to around 25 per cent. of the total. The net asset value of the 5' ordinary shares as at the end of 1960 was 13s. I Id. per share. An interim dividend of 4 per cent was paid last August, before the rights issue the final of 8 per cent. making a total of 12 per cent., which puts the 5s. ordinary shares on 3 4 per cent. yield basis; a good return for progressive company.
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