COMPANY NOTES
PRorns for 1959 of Wiggins Teape, the paper manufacturers, are 34 per cent. up at £4.47 million. The dividend has been increased from 17'2 to 181 per cent. and is covered 1.7 times. Last December four new subsidiary companies were acquired; these will of course bring in additional profits during the current year. The chairman, Mr. L. W. Farrow, proposes to make a 50 per Cent. scrip issue, and advises that profits for the first four months of 1960 are substantially higher; this is most encouraging and might make possible another small increase in the dividend, but if the present rate is held, the £1 ordinary shares at 73s. xd. will give a very satisfactory yield of 5,1 per cent.
The 1959 profit for Ultramar oil shows a sub- Mantial increase at /2,472,269, against £1,372,544. This profit included a dividend of £1,995,389 from Mercedes in which Ultramar holds a 50 per eent. interest. It should be pointed out that Mercedes are experiencing difficulty in disposing
of the vast quantities of oil, which is the reason for a large reduction in the capital expenditure. However, Ultramar hopes to overcome this trouble with new:marketing plans and the expahz sion of the oil refineries. No doubt the chairman, Sir Edwin Herbert; will as usual give a detailed review of the company's affairs at the annual general meeting. At the present time the 10s. stock units at 45s. xd. (they are to receive a distri- bution of Is. 6d.) must be considered speculative, having regard to the present unsatisfactory condi- tions in the oil industry.
Mr. Julian S. Hodge advises in the annual report of Hodge Industrial Securities that very shortly it will be possible to deal in the company's ordinary shares on the London and Cardiff Stock Exchanges. The net profit to March 31, 1960, has more than doubled over the previous year, and it should be remembered that the company started the year with an issued share capital and share premium account amounting to £76,955; this is now £448,890. The net profit is £41,359, and a dividend of 15 per cent. is declared. The rapid expansion of this company has been financed by an increase in deposit accounts, an increase in the bank overdraft, and in respect of a debt for bills payable. The chairman advises that the company is broadening the base of its activities and plans to open branches in selected areas. He confidently predicts a greatly increased turnover and profits for the coming year.
Another annual report from a smaller in- dustrial banker appears from Theo. Garvin Limited. The chairman, Mr. Vivien L. P. Cowan, gives shareholders an interesting account of how the company transacts its business in and around Southend, from which it can be seen that about 75 per cent. of the company's commitments is in respect of domestic appliances. The company is now going ahead with the new capital employed last year. Pre-tax profits have risen from £16,967 to £25,360, and as the compahy now proposes to issue a further 60,000 £1 ordinary shares at £1 is., there will be further scope to increase its business. The dividend is maintained at 10 per cent. and it is expected to maintain this rate on the increased capital..
This is the second year's trading as a public company of John Harvey and Sons, the well- known wine merchants and shippers of Bristol. Sales for the year ending February 29, 1960, have substantially increased by 11.7 per cent. and the net profit after tax from £257,483 to £287,630. It is proposed to increase the dividend from 17+ per cent. to 21 per cent. Harveys have now established companies in South Africa and Rhodesia to market South African sherries and have also extended their interests in Spain. The chairman, Mr. G. E. McWatters, anticipates that the recent reduction in duty on wines will benefit the company, particularly at Christmas time, and he intends to widen the market in the US and Canada for the company's products. The 5s. ordinary shares at 36s. 3d. yield as little as 3 per cent., but as the dividend is covered nearly three times there is scope for an increase next year.
Points made by company chairmen: 1. Mr. G. E. Beharrell of Dunlops: 'In com- mon with other industries, we have recently seen the emergence of a minority, a very Small minority, of workers who seem to have little regard for tradition or for industrial procedures and agreements and who cannot appreciate the delicate balance between' winning and losing a contract. These workers prefer the clenched fist of the unofficial stoppage to the open hand of negotiation and conciliation. As you might expect, this minority is an embarrassment to us. In spite of the patient efforts of our production and personnel managers, and straight and honest
talk by trade union officials, we do occasionally experience local stoppages of work which have no official backing. They endanger supplies to our customers and can bring idleness and loss of earnings to workers who often have little or no connection with the alleged dispute.'
2. Sir H. Reddish of Rugby Portland Cement: believe that we have, in this country, an era of great prosperity ahead of us if we have the common sense to realise that the pro- jected doubled standard of living in a generation must be earned before it can be enjoyed and that inflation must be kept at bay: The Government has a primary responsibility to ensure that our national finances are soundly and economically managed. But the major job lies with our indus- tries.'
3. The Hon. D. J. Smith, chairman of W. H. Smith and Sons: 'We have always recognised the importance of training, which not only helps to provide a better service to the public but also gives members of our staff greater oppor- tunities of gaining promotion. We have now appointed a manager whose responsibility is to advise on all training matters for every section of the business. He also has in his charge the company's staff training college in London. In addition to internally run courses of instruction, we are making more and more use of established training colleges outside.'
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