Company Notes
MR. G. E. LIARDET, chairman and managing director of Simms Motor and Electronics, gives a full report with the accounts for 1960 which are detailed, and are accompanied by coloured illustrations of the subsidiary com- panies and their many products. He points out that over the last decade the price of imported manufactured goods has fallen by about 5 per cent., whereas our export prices have risen by 15 per cent. This year the company will be making a considerable capital investment which will undoubtedly produce benefits in the future. In fact they have just announced a one-for-six rights issue at 21s. 6d.; ten months ago there was a one-for-five rights issue at 10s. This new issue will produce just over £2 million. The future looks bright for this dynamic company which last year secured a large contract for the supply of complete fuel-injection equipment from Fords in the US. All in all, shareholders have reason to be very satisfied with their board of directors and will no doubt be—eager to increase their stake by the rights issue in an investment which has such good prospects for the future. Assuming the maintenance of the 17# per cent, dividend on the increased capital, the 5s. ordinary shares at 30s. will yield 2.9 per cent.
A report from Mr. J. I. Murray, chairman of Gill and Duffus, produce merchants, appeared in last week's issue. This well-managed company was made public in 1949 and has always followed a conservative dividend policy. The very nature of their business makes it necessary for them to employ large bank loans at the beginning and end of each year, but as the company's own resources are built up, the chairman points out, the need for bank loans will diminish. It is encouraging for the future to know that a satis- factory agreement has now been reached with the Ghana Government for the supply of cocoa beans which should keep the West African Mills at Takoradi fully employed. It is interesting to know that the company's new automatic plant for shelling cashew nuts for the extraction of the valuable liquid contained in the shells is now in operation. The gross trading profit for 1960 increased by £90,232, and the net profit was £363,690. It is proposed to make a scrip issue of one-for-four shares and the directors anticipate (as the current year has started well) being able to maintain the dividend of 27-1 per cent. on the increased capital. The dividend is 2.3 times covered and the 5s. ordinary shares at 20s. 9d. give the useful yield of 8.5 per cent.
A. J. Walt (Holdings) have had another record year with a trading profit of £168,682 against £137,214, and a net profit of £85,118 for the year ended February 28, 1961. This excellent result was achieved in spite of the atrociously wet sum- mer which delayed all building operations. The balance sheet shows bank loans and overdrafts at the high figure of £966,062, but the chairman, Mr. H. A. Crowe, points out that the group owns more land than ever before and, taking this at cost, the value would almost equal the total loans or, if sold without development, would realise a substantial profit. The company should be able to look forward to a busy year, as the board, under their active managing director, Mr. Arthur Wait, has considerable plans for further expansion of the company's interests. The well- covered dividend of 17+ per cent. leaves room for a further increase as profits expand. The Is. ordinary shares at 5s. yield 3.6 per cent.
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