COMPANY NOTES
BY CUSTOS
TUESDAY saw a depressing end to a dismal Stock Exchange account. Oil shares failed to hold their weekend recovery and closed not far above the bottom of last week's distress selling. We may be seeing the aftermath of the brokerage failure which was centred in the oil share market. Industrial shares gave ground under the pressure of the many new issues. Property shares remained firm on the introduction of the Rent Bill, although it will be 1958 before the accounts of the property com- panies show any benefit from Mr. Sandys. 1 have previously expressed a preference for A RTIZANS AND GENERAL at 25s. to yield 5.4 per cent. This company stands to gain a lot seeing that from 60 per cent. to 75 per cent. of its properties are rent- controlled. LONDON COUNTY AND FREEHOLD at 26s. to yield 54 per cent. are also favoured, from 55 per cent. to 60 per cent. of their properties being rent-controlled. CITY OF LONDON REAL PROPERTY, WhiCh is rebuilding vast City offices and letting them profitably before they are complete, are down to 28s. to yield no legs than 6.65 per cent. When their present rebuilding programme is complete no further commit- ments will be made unless building costs come down. Shareholders will then reap the benefit of the expansion of the rent roll.
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It is worth noting that the DEBENHAMS group of department stores, which has always had a large proportion of its business in the 'luxury' and middle-class trade, is proposing to enter the popular chain-store field and is looking out for a suitable group to buy by an exchange of shares. Its own stores are being rebuilt when necessary and all its properties revalued so that the directors can see (more quickly than Mr. Clore) whether the assets are being used to best advantage. There is the hint that the lame ducks will be liquidated. This energetic policy should draw atten- tion to Debenhams equity shares which at 34s. yield 84 per cent. on the maintained dividend of 27+ per cent. covered nearly twice. This compares with 8.2 per cent. on UNITED DRAPERY on dividends covered 1.7 times.
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