Company Notes ! he T HE very dry summer of 1959 undoubtc 0
affected the brewing profits of Art° Guinness, which for 1958-59 were down froia £7,000,000 to £6.3 million. Results for 1959', are around the same level as 1957-58—a little di f appointing. However, pre-tax profits for the Ye3,, ended September 30, 1960, are, at £8.2 mint; 10.6 per cent, higher than the previous year: t'" 121 teas Pro, rieb npp Dito the figure includes investment income of £243,0 5, Ss. , about the same as last year. Earnings for the P,14 Pre, year have risen from 51.4 per cent. to 5' oiil, per cent. and the dividend has been increas from 28 per cent. to 30 per cent., rather the market expected. Last year was the C° pany's bicentenary, for which a special WI. of 5 per cent. was paid. This year there. to be a 40 per cent. scrip issue absorb' £5,000,000 of the £18,000,000 reserves. At 70s .$ THE SPECTATOR, DECEMBER 30. the 10s. ordinary shares return 4.5 per cent. , This is the first full year of the accounts of International Computers and Tabulators since 1,11.0 amalgamation of British Tabulating machines and Powers-Samas. The results are good; pre-tax profits for the year to September 3, 1960, have risen from £2.33 million to £2.95 Million. This is a 27 per cent. increase in profits, hut unfortunately there is no amount stated for depreciation, which ill 1958-59 amounted to as fllUeh as 1-1i times the net profit. The company 'c'es a very large business in renting its corn- P,u „ tors, and in spite of keen competition is well "teed to hold its own in the field of punched card machines; electronic calculators and corn- Pillars, and this year extended its field of activities ";_to the Common Market. The it ordinary sares, now 61s. 6d., give a more generous yield ,," "'an in the past at 3.7 per cent. on the I 11 per Lent. increased dividend (against 10 per cent.), Which is covered 1.8 times.
• Gliksten and Son, the large timber importers exporters, have achieved record trading Iltfis for the year to June 30, 1960. -1 hese 4mounted to £1,479,247. compared with 1,076,130. The net profit after tax was £671,371 41.8ainst £508,194. The expansion programme out- 'fled by the chairman, Mr. S. G. Gliksten, has ,een almost completed, but a further substantial t.'iPltal programme is planned for the current ear, all of which is being met from the corn- PallYs own resources. It would seem that the c°,2.,1Pany has benefited front the activity in the b" thua industry, in regard to the supply of d" k°m's and building boards such as Hernite hard- board and Glinex flaxboard to builders. The chairman advises that up to the present time the !rtluP turnov'er is running in excess of the same Period last . year. The dividend has been stepped uP to 321 per cent. and once again there is a t ax.free bonus from capital profits) of • .21 per ent. At 27s. 6d. the 5s. ordinary shares yield fl
early 6 per cent.' excluding the bonus.
e Sir Mark Turner, chairman of Mercantile l'edit, in his statement to shareholders with the accounts for the year to September 30, 1960, give,s a full explanation for tho considerable id ecune in profits. The chief reasons were the „ i;'ereaset in the Bank rate from 4 per cent. to 6 Per cent. during 1959-60 in respect of hire- hcet,";e2hase accounts built up prior to these changes, e "'eh in effect incurred additional charges to the c°x"'Party of about £400,000, and the additional sePense of running this business, meeting as it did, overe competition, also contributed to costs. The 4,42PanY has, of course, increased its business, have others in this field, but without the addi- h`'n,a1 rewards, hire-purchase and other debtors -Ilving risen from £54.8 million to £72.3 million. e. operating profit for the year was £1,633,814 c,,gainst £2,133,792, with a net profit of £602,923, Ira' to earnings of 16.1 per cent., to cover the pre-raissp,iler.ringeent. as reduced from 15 per cent. It is to learn from the chairman that full actvt'slon has been made for all bad and doubtful `S' For the current year profits arc running pkgreciably below those of last year, but the corn-
should benefit from the recent reduction in ■ 43,0 ' 'Ink rate. For the long-term investor the
asi ordinary shares will undoubtedly justify their 01 price of 17s, 6d., at which the yield is Y 31 Per cent.
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