COMPANY NOTES
rr HE Pye Group has been very much in the I limelight by its recent successful battle for
control of Telephone Manufacturing Co.— 'Temco.' This ultimate acquisition will increase
the Pye ordinary capital from £5.18 million to £5.6 million in 5s. ordinary shares. The price paid for Temco shares may at first sight appear to be a high one, but the chairman, Mr. C. 0. Stanley, assures shareholders that this acquisition will bring immediate benefits to Pye Telecommunica- tions Ltd., and will be vital to the Group's com- petitive strength in an ever-growing market for complete communication systems. He also states that it should be possible to maintain the 15 per cent. dividend, now declared, on the increased capital. This should not be difficult, as this divi- dend was covered by earnings of 41.1 per cent. Group profits before and after taxation were the highest in the company's history. The total group net profit to March 31, 1960, was £1,464,274, an increase of nearly 75 per cent. over the previous year. It does seem that, in spite of quoted invest- ments at £4.86 million (which include a substan- tial interest in Associated Television), in view of the company's overdraft of £4,715,417, it will before long need to raise some more permanent capital. Pye has made some heavy capital out- lays in past years, to broaden its interests into electronic instruments and other fields, so that the future looks promising for shareholders. They should certainly attend the annual general meet- ing at the Royal Festival Hall on August 24, and thus take the opportunity of seeing the Group's exhibition of its many products. The 5s. ordinary shares at 16s. 3d. xd. yield 4.6 per cent.- Last year Mr. D. A. N. Wells, the chairman of Carmo (Holdings) Ltd., forecast a further in- crease in the company's profits. This has come about by a gross profit of £85,894 for the year to January 31, 1960, against £64,229 for the previous year. The net profit after tax was £44,164, from which a total dividend of 173 per cent. (including a 21 per cent. bonus) is to be paid against a total last year of 123 per cent The chairman naturally strikes a note of caution as to the effect that the credit and hire-purchase restrictions may have on the company's profits this year, but he is optimis- tic enough to hope that this state of affairs will improve. The company are the main Vauxhall and Bedford dealers in London and South Wales and own three subsidiary engineering companies and a self-drive car hire service company. They are well placed to benefit from any improvement in the motor trade, which is probably now suffer- ing from a temporary setback. The Is. ordinary
shares at around 3s. give a yield of nearly 6 per cent.
Sterling Industries is in the middle of a testing period, advises the chairman, Mr. R. A. Harding. This is because two of the four operating sub- sidiary companies are undergoing a physical move. This, when completed, will release the Exactor factory at Edgware, whose sale should result in a substantial sum. Until then, there can be little improvement in the company's financial resources, which show a cash deterioration of £118,603 with the bank overdraft at £131,926. The company has four subsidiaries operating in the light engineering trade, of which Dualloys Ltd. is the principal and is the only profit-earner in the group. The Board are obviously doing all they can to improve the company's position by modernisation and concentration of their fac- tories at Crewkerne. Until their efforts produce better results shareholders will have to be very patient. No preference or ordinary dividend is being paid. £23,039 is being carried forward. The 5s. ordinary shares last changed hands at around ls. and the £1 53 per cent. cumulative preference at around 12s.
Building Societies A large number of building societies are now issuing half-yearly reports which are welcomed, particularly as the recent increase in the bank rate has brought about a change in the rates for house mortgages and in respect of interest on shares and deposits.
Halifax experienced a very heavy demand for mortgages for the six-month period ended July 31, 1960. These increased by as much as £32,400,000 (to a total of £390,020,000) over the same period as last year. Consequently liquid funds were reduced by £11,190,000, thus reducing the liquid ratio to 15.3 per cent. against 18.6 per cent. of total assets; but even so this is a very strong figure for this great Society. The net inflow of funds from investors amounted to the excellent figure of £14,700,000 as compared with £12,790,000. Total assets now exceed £21,000,000.
Co-operative Permanent reports steady pro- gress for the first six months of 1960. Assets have increased by £4.8 million to £225.9 million; the net inflow of savings was £2.1 million. Mortgage advances included £4.26 million under the Gov- ernment's scheme to assist the purchase of pre- 1919 dwellings.
Bristol and West increased their assets by £1.44 million. Half-yearly figures disclose that mortgages of £2.61 million (99.8 per cent.) were advanced to owner-occupiers. Cash and invest- ments amounted to 19 per cent. of total assets. Northampton Town and County has increased its assets by 4.7 per cent. during the first six Months of this year. There has been a slower inflow of funds from investors to this Society, but the number of accounts operated by this progres- sive society increased by 6,832 to 106,856. Principality announce a net inflow of £157,000 In respect of shares and deposits for the half- Year. There his been a sharp increase in mortgage advances to the extent of £593,000 over the same Period for 1959. The liquid position of cash assets Is good at £1 08 million, being 12.1 per ,cent. of total assets.
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