Company Notes
By LOTHRURY
HICKSON AND WELCH (HOLDINGS) cover the field of manufacturers of organic chemicals, textiles, paper and board, detergents, industrial explosives, rubber and plastics—a wide field. The company's year, ended September 30, 1965, has produced an increased pre-tax profit of 21 per cent. The chairman, Mr. Bernard Hickson, points out that the company has spent more time and money than ever before on ex- port promotion. This is a good example to other companies. Export sales of manufacturing com- panies in the UK were 48 per cent by value of the total turnover. The group profit after tax was £873,270 against £589,418 and a total divi- dend of 15 per cent is to be paid against 13 per cent. For tax reasons the company has de- clared an interim dividend of 3 per cent for the current year. Over the past ten years the company has had a progressive increase in trad- ing profits and this is continuing. This record certainly justifies the retention of the 10s. shares at 45s. 6d., yielding 3.2 per cent.
Shareholders of Ashanti Goldfields will have to wait until March 30 for a full report at the annual general meeting from their chair- man, Major-General Sir Edward Spears. There was only a small change in the trading profit for the year ended September 30, 1965. Ghana taxes took £1,281,393 and UK taxes only £46,416, leaving a net profit of £904,203 against £871,204. The same-again dividend of Is. 6d. is paid on the 4s. shares. Economies were effected in work- ing costs and in future the company's electric power will be supplied by the Volta River Authority with a saving of £240,000 per annum to the company. The change in the political set- up may bring some relief to this richest gold mine in Africa. Investors who buy the shares at certainly gambling, but at least are getting a 19.7 per cent yield for their risk.
There has been a steep rise in the net profit of National and Grindlays Bank for 1965, from £743,889 to £1,358,385, from which a proposed second interim of 9f per cent is to be paid, making a total of 17 per cent. Capitalisation of part of the reserves writes up the 15s. shares by 5s. to £1 and a first interim of 4 per cent is proposed for the current year. The chairman, Lord Aldington, expects to pay another interim dividend in August. The bank is opening further branches in India this year, while last year branches were opened in Zambia, Kenya and Uganda. The fully illustrated report covers the bank activities in many countries and also in- cludes a short history of its origin. The bank's business is based on London, from where it is managed and has earned a high reputation. The shares at 41s. 3d., yielding 6.2 per cent, should continue to prove an attractive invest- ment.
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