Company Notes
B y LOTHBURY
As reported in last week's issue, highly satis- factory rest:ills were achieved by Unigate for 1963-64. The sharp rise in the pre-tax profit at £4.307 million as against £3.288 million was partly accounted for by the inclusion of eight months' profits from Midland Counties Dairies, acquired during the year. On the strength of these good results the dividend has been increased to 17 per cent and a one-for-four scrip issue was proposed. The chairman, Mr. G. Ivor Price, was quietly optimistic about future results, which suggests that the 5s. shares at 14s. 3d., yielding 4.7 per cent, should continue to prove a sound in- vestment.
Mr. G. 0. Stanley, the chairman of Pye (Cam- bridge), gives shareholders a full and colourful report for 1963-64 which justifies his earlier op- timism concerning the company. Pre-tax profits have leapt from £2.156 million to £4.6 million, which include profit contributions from various acquisitions. The only cloud in the sly seems to be' the failure of BBC-2 to establish the expected audience, which may affect Pye's 1964-65 sales. Against this, other divisions in the group will be contributing more. The communications divi- sion is expected to double its profits at over £2 million, while Pye records is substantially in- creasing its sales. Most important of all, agree- ments in the transistor manufacturing division are about to 'be signed which may revolutionise profits there. All in all, the 5s. shares at 20s. look a far more promising investment than they did a year ago. On the 20 per cent dividend, covered twice by earnings, the shares yield S per cent.
Mr. T. A. Barnes, chairman of H. S. Whiteside, makers of branded foods, expresses his confi- dence in the 'current and long-term prospects of his company. The 1963 trading profit of £686,690 compares with £648,518 for 1962. Last year's results were adversely affected by two major tires at the company's factories and as yet the associated companies (through which White- side is linked with the US) have not contributed to profits. It is now necessary to fund the bank overdraft of £1.138 million by an issue (by way of rights to shareholders) of unsecured con- vertible loan stock. When this is out of the way the Is. shares, now 3s. 71d., yielding 6 per cent on the dividend of 22 per cent, should move up.
Previous page
