Company Notes
By LOTHBURY
MR. J. W. GARTON, chairman of Hoffman Manufacturing and also of Brown Bayley Steels, reports favourably for 1964 on both his companies. Hoffman, manufacturers of roller bearings, made a net profit of £875,026 (against £738,437). from which a final dividend of 17+ per cent is declared, making a total of 25 per cent against 23 per cent. During the year the group spent £1,514,815 on capital account and is com- mitted to a further £734,056. The 5s. shares are around 25s. The company has a widespread over- seas distribution service in the Middle and Far East.
Brown Bayley Steels made a net profit of £418,264 (including 'a good profit from the South African subsidiary) against £386,234. A final dividend of 14 per cent will be paid, making a total of 19 per cent, which compares with 16 per cent for the previous year. The 10s. shares at 30s. yield 6.3 per cent. This is not one of the companies included in the Government's pro- posed steel nationalisation.
A very disappointing year from Harland and Wolff, the shipbuilders. Against a 1963 trading profit of £1,013,142, the 1964 figure has fallen away to £46,640, resulting in a net loss of £693,076 against a previous profit of £601,030. The token dividend of 21- per cent has been maintained. The company is budgeting for a substantial im- provement this year. but the outlook for British shipbuilding, is still far from promising. On the steel construction side, business has been well maintained. The £1 shares are around 10s.
Dunlop again exceeds the best expectations with pre-tax profits up by 20 per cent, despite rising costs, and the dividend increased from Is. 4id. to Is. 7d. In fact, almost all factors point in the company's favour, with net profits up from £5,733,000 to £7,469,000, to justify the increase in the dividend from 13.7 per cent to 15.8 per cent, more than twice covered by earnings. But, from a recent press conference, the chairman, Sir Edward Beharrell, made it plain that the corporation tax would hit the company. Profit margins on home sales have been cut, but those on overseas investments, which are considerable, have been increased. This Is another case of a very large industrial company being severely' hit by the cancellation of DTR and the imposition of the 40 per cent corporation tax. The 10s. shares at 30s. yield 5.3 per cent.
The continued prosperity of Engineering Corn- -ponents continues, assisted by the booming motor industry. The 1964 net profit was £546,688 against £449,669. The dividend is stepped up from 20 per cent to 25 per cent. The chairman, Mr. C. C. Griffith, considers prospects en- couraging. The company's associate companies In Australia, India, Canada, Holland and Italy could form a buffer to any slackening of motor business on the home front. The 5s. shares at 17s. yield 7.6 per cent.
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