Company Notes
A FEATURE of the report for the past year from Tunnel Portland Cement Co. (an extract of the statement by the chairman, Mr. N. M. Jen- sen, appeared in our last week's issue) was the disclosure (for the first time) of their trade invest- ments. These, including unquoted investments, give a £2.8 million surplus over the cost figure of £1.6 million in the balance sheet, thus increas- ing the net equity assets to 30s. 5d. The chairman has much to say about the unfairness of the fuel oil tax, which makes it quite unprofitable for the company to export. One of the company's works is therefore reverting back to using coal. The new West Thurrock plant will shortly be in operation, but it does not seem as if output -will be greatly increased during the current year. The 10s. 'B' ordinary shares at 37s. 9d. yield 4.2 per cent. excluding the 2 per cent. tax-free payment.
The first report since the company was made public comes from another concrete producer, Ready Mixed Concrete (United Kingdom), giv- ing pre-tax profits of £610,000 which closely approximate to the prospectus figures and the dividend, as forecast, is to be 20 per cent. The chairman's report is eagerly awaited, when no doubt shareholders will hear about the com- pany's large expansion programme at home and about its interests in Europe. The 5s; shares were
introduced at 24s. in May,,1961, but went as high as 38s. 9d. in the first days dealings. They are now 34s. 3d., yielding only 2.9 per cent.
Another company to produce its first report since its shares were introduced to the Birming- ham and Cardiff stock exchanges is Joseph Webb and Co., whose pre-tax profits were forecast at £60,000. These are disclosed as £66,309 for the year ended March 31, 1962. The company was introduced under the auspices of Gwent and %Vest Enterprises Ltd. as builders of houses and factories and estate developers. They also own two holiday caravan parks at New Quay in Cardiganshire which are very profitable. Plans are in hand for the development of a holiday village at Burnham-on-Sea in Somerset and the group hopes before long to acquire other com- panies that will fit into their organisation. The dividend is to be 20 per cent., and a 10 per cent. interim on account of the current year will be paid on September 29. The issued ordinary capi- tal is in Is. shares which are quoted at 4s. 9d.
In spite of difficult conditions prevailing in the engineering industry, the pre-tax Profits of Steel and Co. at £120 million for the year to March 31, 1962, are nearly as good as the pre- vious year's, which were a record. Amongst the various machines the company makes the output of cranes was, states the chairman, particularly satisfactory and exports were greater than ever before. The dividend is highly satisfactory; since the interim of .10 per cent. there has been a share issue of three for seven shares; a final dividend of 10 per cent. is now proposed on the increased capital which is twice covered by earnings. It would seem that the current year should be equally satisfactory, and long-term prospects are sufficiently encouraging to justify the yield of 3.7 per cent. on the 5s. shares at 23s..
Previous page
