Company Notes
By LOTHBURY
RAPID progress is being made by International Tea Stores in converting its old-style stores into self-service stores. Last year 105 were con- verted, and it is anticipated that in the year end- ing April 30, ,1964, over one hundred more (twenty of them supermarkets) will change to self-service. This is progress indeed, but the directors do not intend to go into supermarkets in a big way, as the cost of sites and fitting out these shops are very heavy. Wholesale interests are represented by Kearley and Tonge; some of the principal retail subsidiaries include George Mason, John Quality, Kilby's and Payantake Stores. Net profits for the past year increased to £933,828 from £888,629 and the dividend was increased by 1 per cent to 13+ per cent after staying at 12+ per cent for the three previous Years. The company should continue its steady progress. The 5s. shares at 16s. yield 4.2 per cent.
Demand for the fine fabrics of West Cumber- land Silk Mills stretched production tacilities to the limit during the year ended March 31, 1963. This has decided the directors to extend the mill at Whitehaven, to satisfy the expected future demand. Pre-tax profits have risen to a record of £138,041 against £105,026, and the dividend has been raised from 24 per cent, as paid for the past two years, to 26 per cent. There is to be a two-for-three scrip issue in 'A' ordi- nary shares. A further rise in the dividend on the larger capital is to be hoped for, to justify the present price of the 2s. ordinary shares at I Is. 6d., yielding 4.5 per cent.
The volume of milk handled by Unigate for the year ended March 31, 1963, was less than in previous years, but other sections of the group were responsible for the increased profit. Profits before tax rose from £6,044,382 to £6,471,883, but the dividend was maintained at 14 per cent, well covered by earnings of 26.6 per cent. Cow and Gate is increasing its sales of baby foods at home and abroad, and branded goods, such as 'St. Ivel' biater, 'Farmer's Wife' double Devon cream, hit their sales target. The level of milk production, on which the company's profits largely depend, is entirely controlled by the Government. The recent acquisition of Mid- land Counties Dairies for £4.7 million will con- siderably expand this section. But it may create a problem in making a capital issue necessary soon to provide funds over and above the £1.8 million available in the balance sheet. Prospects for an increased dividend seem to be limited. The 5s. shares at 16s. 6d. yield 4.2 per cent.
Profits before tax from Redland Holdings for
the year to March 31, 1963, are again a record. An increase of £383,987 puts them 'up to £2,176,701, and the net profit from £783,692 to £885,497. Perhaps a little disappointing, as the accounts include a full year's profits (less the cement business) from Eastwoods. But the severe winter played havoc with the building trades. The chairman gives a very full and en- couraging review of the company's interests, which include the making of bricks, tiles, con- crete and stonework pipes, quarrying, engineer- ing and transport. The first three months of the current year have recorded profits well above those of the same period last year. This company has years of work ahead and profits should continue to rise. The 5s. shares at 28s. yield 2.7 per cent on the 15 per cent dividend.
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