28 JUNE 1963, Page 22

Company Notes


IN last week's issue there appeared an extract from the chairman's report of Highams Ltd., the cotton cloth manufacturers, which disclosed a substantial improvement in the group net trading profit for the year to March 30, 1963, at £178,369 against £109,311. A particular point of interest to shareholders was the chair- man's statement that the company intended to issue further capital for the purpose of re- development and reorganisation. This will be done by offering ordinary shareholders 500,000 £1 redeemable cumulative 7 per cent preference shares at a price to be determined later. These should prove to be an attractive income stock. The 5s. ordinary shares at lls. 6d. yield 6.8 per cent on the 16 per cent dividend.

A most encouraging report comes from the depressed shipping industry. Sir Nicholas Cayzer, Bt., chairman of British and Common- wealth Shipping—the Clan Line and Union Castle group—advises an increase in the trading profit from £5.952 million in 1961 to £6.727 mil' lion in 1962. The net profit after tax (excluding the benefit of investment allowances) was £991,000 against £942,000. The capital expert' diture programme was only £1.1 million for the year compared with £81 million for the pre' vious year, which indicates the completion Of the building phase. The general shipping outlook is still difficult and is likely to remain a° for the foreseeable future, but, with econotnY in operation and the continuing effort in the commercial field, the future is not unhopeful The 10s. shares at 30s. 6d., yelding 5.4 Per cent on the maintained 20 per cent dividend. are one of the best shipping investments. The tobacco and cigarette manufacturing interests of Godfrey Phillips suffered a severe setback in 1962 due to the loss of a valuable export manufacturing contract. Further dis: appointment was occasioned in the group; interests as printers of paperback books an°, greeting cards. Overall the pre-tax profit declined from £856,000 to £731,000 and the net profit

from £292,000 to £115,000. However, the chair'

man, Mr. Godfrey Phillips, is maintaining ale, 20 per cent dividend as he is confident that 196" will mark the resumption of the group's 1310:

gress in recent years. The net assets in the bat' ance sheet at the end of 1962 were worth 63s. 6d•

per share. The £1 shares at 44s. 6d. yield 8.9 Per cent and at this price are worth picking uP Last June, Mr. S. Goldstein, chairman o' Ellis and Goldstein, expressed doubts that his company would be able to maintain the pre-tat profits of £865,000 made in 1961. These have fallen to £805,000 for the year to November 30'

1962. The fashion trade has generally expel" enced a setback in the last year. The outlook for the current year is not particularly encouraging'

as the first six months of the current years trading has again been affected by the bad weather. But the chairman is of the opinion that

over the long term there will be a resumption O steady progress. The company has an excellent` growth record over the years. The ls. shares 0f

the maintained dividend of 35 per cent (twic` covered) are a reasonable investment at 7s. 1° yield 5 per cent.