Company Notes
By LOTHBURY
SINCE the date of the last accounts from Longbourne Holdings this tea company has acquired another, namely Allynugger Amo and Lungla (Sylhet) Tea, so that last year's figures are not comparable with those of the previous years. The tea crop for this year was most satis- factory, and for five of the six subsidiaries was a record. This old-established tea company has throughout its history financed its expansion from retained profits, but the present Finance Bill will undoubtedly affect its future, It appears that the Board will be faced in the future with the ques- tion, whether to retain profits for the improve- ment of properties at the expense of the share- holders or to maintain dividends at the expense of the tea gardens. The total dividend is 30 per cent and with the £1 shares at 30s. gives a yield of 20 per cent which indicates the uncertainty of the future.
Reorganisation of E. Austin (London) has resulted in the company earning a reasonable profit for the first time for several years. This amounted to £114,000 for the year ending March 31, 1965; of this amount £70,000 should be con- sidered as non-recurring. The profit is relieved of taxation by the losses brought forward. A satis- factory feature of the balance sheet is that the overdraft of £212,550 has been repaid. The trad- ing outlook has improved, the plant-hire division is expanding together with the fork-lift trucks division and in fact the chairman looks forward to a reasonable rate of growth in the future. Last March there was a special distribution to share- holders--a 10 per cent interim and 11.9 per cent capital distribution. The final dividend is 71 per cent and is the rate the directors hope to maintain in the future. The 5s. shares are around par.
The Union Corporation is interested in Green- haven Securities whose rental income increased from £432,530 to £558,880 for the year ending April 5, 1965. During the year additions of £4.1 million were made in the portfolio. The company, is mainly concerned with the development of shop and office property and in spite of taxation difficulties ahead the chairman states that the company has no intention of liquidating; in fact, it should be able to look forward to a significant increase in income and profits for higher divi- dens. The 4s. shares at 16s. yield 5.7 per cent on the dividend of 211 per cent.
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