COMPANY NOTES
DUNLOP RUBBER has produced an excellent report for 1957 and has restored the ordinary dividend rate to 14 per cent, which, in 1956, was cut to 10 per cent. In the first half of that year, it will be recalled, the price of rubber fell by nearly a third, but the slower decline in the price in 1957 has not had such an unfavourable effect. It is notable that a greater part of the group's profits were earned from exports, and while the produc- tion of tyres is the Company's main line, about 30 per cent. of its production capacity covers a wide range of other articles. Capital outlay appears to be around £10 million per annum; new tyre factories are being built at Bulawayo, Madras and Amiens. Dunlop have an interest in the new synthetic rubber plant at Fawley, costing them approximately £3 million, and this will prove a valuable dollar-saver. The financial position has been improved and net current assets are now £60 million. As the dividend is covered 21 times, the 10s. ordinary shares at 17s. 3d., yielding 8.1 per cent., deserve a better investment status. No doubt the market will adjust itself in the light of what the Chairman, Mr. G. E. Beharrell, is able to tell, shareholders about current trading at the annual general meeting on June 16. Threlfall's Brewery has had a sparkling record, having increased its ordinary dividend every year since 1951, with a 50 per cent. capital bonus la 1954. For the year ending March 31, 1958, the dividend is 21 per cent. (against 20 per cent.) from earnings of 29.6 per cent. Considerable expansion has occurred during the past two years, twelve new hotels having been built as well as a new bottling factory and a mineral-water factori. This is a progressive brewery operating in the Lancashire and Cheshire areas, and it has a strong balance sheet. The £1 ordinary shares are 10 overvalued at 50s. 71d. to yield 8.3 per cent.
Permutit is probably the best-known manufae; turer of water softeners and specialist in the field of water treatment. The company has severe) subsidiaries which have done particularly wel, during the past year, contributing £96,042 in ro" profits (an increase of £71,318) to the parent coin' pany. It has not yet seen fit to publish consols" dated accounts. The parent company alone show's earnings of 47.8 per cent. to cover the maintain° dividend of 15 per cent.; had the subsidiary carry ings been included and not carried forward 10 their individual accounts, then the parent cosh' pany would have shown earnings of 70 per cea'; This company's progress record and finaneitt' strength (liquid assets £867,902) fully justify ils high investment status with the 5s. ordinary shares standing at 16s. 6d. to yield 4.5 per cent. Tile Chairman, Mr. R. T. Pemberton, is rightly al:, serving resources with an expansion programa' yet to be completed. • A. Peachey and Company. The statement by the Chairman, Mr. C. W. Hutley, to stockholderil at the forthcoming annual general meeting V',1g be of particular interest. He points out that EP group will remain vulnerable to fluctual interest rates until permanent finance can effected. The recent reduction in Bank rate l's 5/ per cent. may assist him in this respect. it/$ noted that mortgages outstanding rose from n million to £3.4 million between 1956 and 19" and although there has been an increase in 18' come from sales of properties and lettings there has been a fall in the net income of the Groll Group fixed assets have increased from £493,66. to £1,311,246, reflecting a rise of £824,427 1„" properties held as investments. The Chairnl° claims that even now the rents of modern proPer:, ties are, in the light of present-day market col' tions, still between only one-third and one-half ,s market rental. It is unfortunate that the account are available at such a late date, being practica,,D, at the end of the next trading period, but no don° the Chairman will be able to give a forecast as to the past year's trading which is now almost pleted. At 12s. 9d. the is. ordinary shares Yie 6.25 per cent.
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