Company Notes
COLVILLES, the Glasgow steel-makers, have had a most successful year with record production and profit figures, pre-tax profits having jumped frqm £8,527,525 to £12,963,267 for the year ended September 30, 1960. For the past year the company has derived considerable benefits from investment allowances, which amounted to £1.85 million; these will, of course, run off as the expansion programme is completed in the next few years. However, after deducting £2,583,703 for depreciation and £6,117,224 for tax, the net profit of £5,275,082 covers the 16 per cent. dividend 4-I times after deducting the investment allowances. An equivalent expansion in profits can hardly be expected in the current year, but no doubt the chairman, Sir Andrew McCanse, will give shareholders some informa- tion on the current trend at the annual general meeting taking place today. The £1 ordinary shares at 73s. 6d. are a first-class investment yield- ing 4.3 per cent. .
The accounts of Whitefriars Investment Trust to April 30, 1960, reflect the acquisitions recently made and the revaluation of their assets, which has produced a surplus of £322,482 over the book value. Whitefriars is really a holding com- pany owning three subsidiaries, namely Turner and Savage, aircraft engineers, Ross Ensign, makers of lenses and binoculars, and Electrical Agencies (London); the latter was acquired early in 1960 and therefore has only contributed a few months' trading to the group profits. Net revenue after tax was £116,315, which fignre included pre-acquisition profits of £40,408. The final dividend of 30 per cent, is payable on the in- creased capital anti makes a total equivalent of 57.3 per cent, on the 5s, ordinary shares, which at 14s. 9d. yield as much as 19.4 per cent. With- out any indication from the chairman, Mr. L. Larholt, as to the current trading of the sub- sidiaries, it is only possible to value the shares on a very conservative basis.
British Anzani Engineering Co. has produced accounts for an eighteen-month period to August 31, 1960, and these show a trading profit of £29,031 and a net profit after tax of £9,340. The company manufactures 'Astra' commercial vehicles, 'Easimow' mowers and farming equip- ment and also outboard motors for small craft. These Anzani motors have been redesigned and remodelled at considerable expense and con- sequently are now very competitive; in fact a large order has just been received from China, together with considerable inquiries from over- seas, says Colonel W. D. Gibbs, the chairman. It would seem that the outlook for this section of the company's business is most promising, but the company, with an issued capital of £150,000, undoubtedly needs more working capital to sup- port its promising programme of expansion. The ordinary dividend of 74- per cent, is for the eighteen-month period; the Is. shares at Is. 11-d. seem fully valued pending the financial position and the profits being improved.
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