Radio and Television Renting
The radio and television renting companies have stood up very well in trading profits and in market values. The leader, RADIO RENTALS, at 27s.. is 10 per cent. below its top and yield- ing 3.6 per cent.; so is BRITISH RELAY WIRELESS, yielding 3f per cent. TELEFUSION at 40s. 6d. is actually at its high for the year, thanks largely to a favourable report from brokers. This com- pany confines itself to the renting of television receivers and the operation of relay television services, the equipment for which it manufac- tures. There is scope for a big expansion in the latter, especially as the company has de- veloped a simplified relay system which works with any make of television set without modifi- cation. There is also the prospect of a develop- ment of TV-in-the-slot-the subscriber paying for programmes which he desires to watch. For this purpose the RANK ORGANISATION has signed' up with REDIFFUSION, but I understand that PARAMOUNT have a perfect TV-in-the-slot system which is available for Telefusion or any- one else. Telefusion holds the television relay franchise in twenty-nine localities, including London boroughs. Since it became a public company in 1958 its profits have doubled and also its dividends. In 1967 the GPO can revise the licensing contracts, but while it may provide long-distance television links between big centres of population, it is not likely to take over local relay. At 40s., the 5s. shares of Telefusion yield 3.8 per cent. and are an attractive speculative investment.
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