24 OCTOBER 1958, Page 30


JandF. STONE has had, as retailers of and appliances, radio and television sets, a long record of success, but for the year ended June 30, 1958, the company has suffered a con- siderable setback. The trading profit has dropped from £1,237,980 to £860,678, and the net profit was £309,188 against £447,601. The ordinary divi- dend is, however, unchanged at 36 per cent. These disappointing figures are no doubt partly due to the many hire-purchase restrictions which per- sisted throughout the past trading year, but which are now being relaxed. The company has ample resources to finance its own hire-purchase con- tracts and is known to be increasing its credit and rental sales. The 5s. ordinary shares, now 23s. to yield 6.5 per cent., may be standing at a higher level next year if the company's fortunes resume their former upward trend.

Fairey Aviation keeps to its conservative divi- dend policy by maintaining the ordinary dividend at 15 per cent. for the third successive year. This

year earnings work out at 81.3 per cent. (1957-84 per cent.) covering the dividend ,51 times. For the , year ending March 31, 1958, the gross trading profit is shown as £2,231,146, but bnly after credit- ing £1.90 million for deliveries made in previous years-in 1956-57 the amount was £1.25 million. it is thus apparent that current profits are down and until the chairman, Mr. G. W. Hall, explains the present position and future prospects the future must remain obscure. There is plenty of develop- ment work in hand, such as the Rotodyne Heli- copter and the Ultra Light Helicopter, which are now near the production stage. The company is obviously committed to a large, capital outlay, for a Contribution has to be made to the De Havilland Hunting Fairey Consortium for the SEA order and also to the Atomic Power Construction Con' sortium. Evidence of this may be found in the reduction of the cash balance last year front £1,040,371 to £466,078. Net profit for the past year was £980,228 against £983,157. The 10s. ordinary shares at 20s. 3d. yield 7.4 per cent. The chairman must enlighten the shareholders on the present diversification of the company's interests and the future profit-earning capacity of the various developments to which it isgeommitted.

Ransome and Marks, the well-known manik facturers of bearings, have achieved a record tura., over for the year ended June 30, 1958, and a greatly increased net profit of £639,996 against £380,538. This excellent result is no doubt mostlY due to the prosperity of the motor industry, but 11 must be assumed that the capital outlay of aboln £1 million over the past two years was als0 responsible for greater efficiency, and expansion of the company's interests and profits. The pro' duction of bearings .is now concentrated at ..-


Newark and the new factory at Annfield Plaig, whilst overseas subsidiaries are operating profit- ably in Canada, South Africa, Australia and New Zealand. If earnings continue to increase, as theY. should, now that the capital expansion pro' gramme has been completed, the outlook for shareholders is certainly rosy. The chairman, MI. E. W. Senior, states that the company's order book is substantial, that cash assets have jumped from £35,371 to £606,657 and the bank overdraft 0, f £94,318 has been repaid; but he does not explaill his dividend declaration. This for,, the fourth year is 15 per cent, plus an interim of 21 per cent. (for the current year), no doubt declared at this time In avoid attracting profit tax as it would have done as part of the final dividend. With earnings 01, 55.7 per cent, it is safe to assume a total dividenn for the current year of 17+ per cent. On this bast' the 5s. ordinary shares at 14s. 6d. yield 6 per cent,