COMPkNY NOTES
INTERNATIONAL COMPUTORS AND TABULATORS is the new name for the mer- ger between British Tabulating Machines (Hol- lerith) and Power-Samas Accounting Machines. This was announced by Sir Cecil M. Weir, KCMG, KBE, MC, the chairman, at a press conference last Friday, when he said that this great British company, which can success- fully compete in any market with any other company in the world in the same line of business, will come to be known as ICT. The deputy chairman, Colonel A. T. Maxwell, TD, said : 'We are going to show an aggressive spirit in all directions.' The net tangible assets of ICT are valued at £23,768,000 and the issued share capital now consists of 8,064,516 ordinary shares of £1 each and 400,000 £1 preference shares; reserves total £6 million. It is evident that with a greater degree of co-ordination now possible, the future of this great organisation is indeed bright. The £1 ordinary shares continue to enjoy a high investment status; at 64s. 6d. they yield as little as 2.5 per cent. Vickers, with a 38 per cent. interest in this company, give a 5.7 per cent. yield at 34s. 6d. on their dividend of 10 per cent.
Bowmakers, the well-known industrial bankers, have had a very full year which ended on October 31, 1958. Firstly, a one-for-three scrip issue was made, secondly they acquired three other com- panies by the allotment of 1,200,000 ordinary shares and a cash payment of £103,000. Thirdly, in August, they issued two million 5s. ordinary shares to Lloyds Bank at 29s. 6d. each, and last but not least the previous rate of dividend-272 per cent.-has been maintained on the increased capital; since the end of their financial year they have acquired' the entire share capital of Midland Counties Motor Finance. It was therefore not unexpected that the gross trading, profit was con- siderably higher at £1,026,524 against £750,289 and the net profit (after tax) £222,478 against £134,744; with de-restrictions of hire-purchase conditions (the company specialises in motor-car finance) the outlook for this year must be bright. Bowmakers have recently introduced a scheme whereby investors may purchase stocks and shares on deferred terms. Their own 5s. ordinary shares at 36s. only yield 3.6 per cent., but the prospects for much higher earnings are there for all to see. It is proposed to make a free scrip issue of one for one with the payment of the final dividend. An extract from the chairman's statement appears on page 203.
UNIT TRUSTS
Another newcomer made an offer for sale last Friday (as advertised on pages 152 and 153 of last week's issue) under the name of Shield Unit Fund. This Trust is a member of the National. Group and is sponsored by N. M. Rothschild and Sons. The Rothschild Executor and Trustee Company will act as Trustees to the Fund, for which there is a strong investment advisory panel. They, in the first instance, will select not less than fifty securities with possibly a wider spread later. It is intended that .the investment spread will be 73.5 per cent. in the UK, 20 per cent. in the US and Canada, and in other countries 6.5 per cent. As the managers will act as agents, all benefits derived from advantageous investments will accrue to the fund. This offer of 5 million units, at 10s. each, should have a wide appeal, particu- larly as the 'small investor' can take advantage of a savings plan whereby he can purchase units by making weekly payments of 10s. until the money to hig. credit is sufficient to purchase ten units.
Managers for the past twenty-five years are the Allied Group of Unit Trusts, whose British Industries Flexible Trust-second portfolio-was advertised on page 157 of last week's issue.,Units were offered for sale at 15s. Old. to give a gross return of £6 per cent, from an investment in ordinary shares in 117 well-known companies. This should appeal to those in search of a good income with prospects of further appreciation. This portfolio may prove as successful as the first (formed in 1942), which was floated at an equiva- lent price of 7s. 61d. per unit and has distributed a gross amount of £135 18s. 5d. for every £100 over the sixteen years.
The First Provincial Unit Trust has split its `Reserves' units into four since they were offered on April 13, 1953, at 18s.—today's price is
35s. 7d.—a remarkable appreciation compared with an appreciation by the Financial Times industrial ordinary index of 81.6 per cent. A new issue of 500,000 units is shortly to be made, details of which we hope to published at a later date.
We referred to the recent issue by Municipal and General Securities General Trust Fund in our issue of January 16, on page 87. Since then they have first paid their ten-millionth £ in divi- dend, which was handed over to the unit holder to- gether with a free bonus of 500 units, at a function on Monday. The presentation was made by Mr. G. M. Booth, formerly chairman of the fund. The pr,esent price of the units (split into four last December) is 8s. 2d.-8s. 7fd.
Unicorn Trust had a quick response to its offer for sale of two million units at 13s. 3d. on January 15. Their present price is 12s. 11d.-13s. 61d.
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