COMPANY 'NOTES
DURTNG the previous financial year Crystalate (Holdings) was formed to take over the assets of Crystalate, so that it now controls Crystalate (Mouldings), British Homophone, Crystalate (Printing), Mica Products and Eben- estos Industries. This company's results to March 31, 1959, are a little disappointing in that lower profits are returned from this member of the plastics industry. However, the chairman, Mr. Jack Lesser, reports that there was a falling-off in demand for the company's products in the later part of the year and certain rising costs could not be passed on to the consumer. Trading profit fell from £114,466 to £79,701 and the net profit, after tax, from £37,291 to £32,816. The group balance sheet is strong, and the factories at Tonbridge and New Cross have recently been extended. Trading for the current year shows some improve- ment and the order book shows a good increase over the previous year, so that the Is. ordinary shares at Is. 4-1d., yielding 9 per cent. should be retained—a dividend of6124 per cent. has been declared for the fourth successive year.
Mr. J. Lesser is also chairman of British Homo- phone Company, mentioned above. By the re- organisation this company was set free to manufac- ture commercial gramophone records, which it was thought would considerably increase their profits, after the factory plant and machinery had been extended to allow for this expansion. The chief subsidiary, Ebenestos Industries, contributed a smaller dividend of £11,281 to the company,which has earned a net profit after tax for the year to March 31, 1959, of £13,614. The holding company controls the ordinary capital but it is possible to buy the 7 per cent. participating cumulative 5s. preference shares, receiving a dividend of 94 per cent., at 6s. 3d. to yield 7.6 per cent. An extract of the chairman's statement appears on. page 453.
Mr. E. V. Jobson, the chairman of Qualcast, always keeps shareholders well informed by frequent interim reports and will no doubt have more information to hand out at the annual general meeting to be held on October 27. This company are well known for their manufacture of lawn mowers; they are also light iron founders. The preliminary figures show that the group trad- ing profit to June 30, 1959, has increased from £1.41 million to £1.55 million; the net figures indicate a new high in earnings of 66.5 per cent. The dividend on the 5s. ordinary shares is to be in- creased from 24 per cent. to 264 per cent., plus a tax-free payment of 3 per cent. from profits on the sale of trade investments. This has for some years been a growth stock; it should continue to be so, especially as the new foundry at Derby has recently come into operation. Assuming a divi- dend of 264 per cent, the shares yield 4.1 per cent.
On the retirement of Mc. P. J. Burgess, for so many years chairman of Kinta Kellas Rubber Estates, Mr. J. R. Tannock, the new chairman, reports to shareholders. The net profit after tax for the year to March 31, 1959, was £39,893, a decline of £10,212 on the previous year, but this fall was mainly due to decreased revenue from Tin Royalty and Tribute. However, this year the company has received an amount of £10,091 in respect of government replanting grants as against only £2,569 last year. This, together with the out- look for the future, in which the chairman expresses some confidence, justifies, he says, an increased final dividend of 20 per cent., making
a total of 25 per cent. The position of the com- modity in regard to world supply looks healthy. The company should therefore have a satisfactory year. General reserve now stands at £76,000 and replanting reserve at £35,000 against the issued ordinary capital of £152,500 all in 2s. ordinary shares which at 3s. 6d. yield 14.3 per cent.
Sir Cyril Black, chairman of London Shop Property Trust, strikes a confident note in his report to shareholders for the year ended April 30. 1959. Revenue account, after charging ground rent and expenses, has risen from £46,928 t £126,292. The 1958 profits included an amount £20,000 in respect of profits on sales of propertie but no profits of this nature were earned in 1959. Thus future profits can be based on actual revenues, without allowing for capital profits which have accrued over the past five years. From the net revenue of £81,585 taxation amounts to £41,878; this includes a special provision of £10,000 for future taxation. The company controls Thurloe Property Co., Perfect Homes Ltd., Warwick Estates Ltd., C. & S. Properties Ltd., and has recently acquired Ribak Property & Services Co., and L.S.P. Investments Ltd. It is not intended to pay a final dividend. A special interim of 8 per cent. was paid on April 29, 1959; but the chairman predicts a prosperous and progressive future for this company, so that in these days of doubt regarding property companies, the Li ordinary' shares at 32s. 3d. to yield 4.9 per cent, should prove a sound investment.
Previous page
