COMPANY NOTES
CONSETT IRON preliminary figures disclosed the sharp fall in profits of nearly 40 per cent., which was more than the market anticipated, seeing that steel production for the first nine months of 1958 was only 8.6 per cent, down on the same period a year ago, and the ship-building industry (busy all this year) takes a large propor- tion of the Company's output of steel plate. The statement revealed that for the year ended Sep- tember 27, 1958, the trading profit was down by £1,567,000 to £3,817,031 and in spite of a con- siderable tax reduction the net profit was £761,000 lower at £1,205,077. It is proposed merely to main- tain the present rate of dividend of 81 per cent. whilst the company repays the £18 million bor- rowed from its bankers and The Finance Corpora- tion for Industry to finance its development pro- gramme. Perhaps ordinary shareholders will have something to say on this at the annual general meeting, when it is hoped that the chairman, Mr. Clive Cookson, will give them some assurance as to the future outlook and an explanation as to the severe drop in profits. The £1 ordinary shams yielding nearly 9 per cent. have fallen to 19s. 6d.
J. Gliksten and Son has certainly come through a difficult year well, for in spite of restricted activity in the building and furniture trades, this company of timber merchants and importers of hard and soft woods has recorded a 10 per cent. increase in turnover, with trading profits £65,000 up. The report (to June 30, 1958) is attractively presented in a Japanese veneer made from 'Kin,' Mr. S. G. Gliksten, the chairman, gives a compre- hensive and optimistic survey of the company's activities with particular reference to the expand- ing export sales. The trading profit was £960,064
against £895,109 and the net profit 1251,980 against £244,557, providing a twofold cover for the dividend of 35 per cent., which is to be paid for the fifth successive year. It is also proposed to make a free scrip issue of one share for every two held. The balance of the Unsecured Loan Stock will be repaid by next June. This will release a sum (in respect of interest) equivalent to another 10 points on the ordinary stock. This fact, together with the improved trading outlook for the current year, makes the 5s. ordinary shares (at 23s. 6d. to yield 7.3 per cent.) an attractive investment. Some increase in dividend on the enlarged capital can be hoped for next year.
Midland Tar Distillers has had its agreements with the Midlands, Wales and Southern Area Gas Boards reviewed, as the chairman, Mr. S. J. L. Robinson, advised a year ago. From this review the producer has obtained a larger share in the tar business revenue and consequently the company's profits have declined approximately 20 per cent. for the year ended June 30, 1958. The net profit was £169,907 against £220,896, and is equal to earnings of 22 per cent. against 30 per cent. The ordinary dividend is again 10 per cent, for the fifth successive year. Bank overdraft has risen from £264,933 to £403,869, but the company still has £510,000 on short-term loan with local authorities. Debtors have fallen but stocks have increased and there are still capital commitments of £295,000 to be met. The chairman, at the annual general meeting, should say if any further sums can be expected from Benzole Producers. This subsidiary produced a windfall this year of £42,506 which has been passed on to shareholders by a tax-free 3+ per cent. payment. The £1 ordinary shares at 40s. return only 5 per cent. The Market would be fortified with a better appreciation of the col pany's outlook.
Rajawella Produce Company having suffered from floods, drought and strikes, it is not sur- prising that profits for the year ended June 30, 1958, have declined by £46,548 after charging £9,518 for replanting. Although a slightly higher price was obtained this year for the tea cro1), owing to adverse climatic conditions there was a decrease in the crop of 91,950 lb. Rubber showed an increase of 40,127 lb. in the crop, but with the selling price at 5d. a lb. lower, the resulting profit was a small one. The crop of cocoa suffered badly from adverse weather conditions, and a loss of £15,000 resulted; but coconuts brought in it small profit. From a gross profit of £162,643, sum of £102,000 has been provided for taxation, The chairman, Mr. J. J. Saunders, hopes for better weather and trading conditions. The 10s. ordinary shares are quoted at 14s. 7+d. to yield 20 per cent. on the 30 per cent. dividend.
Herrburger Brooks report that for the year ended June 30, 1958, there has been a further decline in profits for the third successive year, this time by as much as 34 per cent. Several countries, particularly New Zealand, heavily re- stricted the import of piano actions (which the company manufactures), consequently a con- siderable all-round reduction of business was experienced. Trading profits have fallen from £86,637 to £69,039 and net profits from £25,975 to £17,048, but stocks and work in progress have been well maintained at £203,560. Now that credit restrictions at home have been relaxed the home trade should benefit and with a better outlook for overseas sales, which it is hoped the chairman, Mr• C. W. P. Hughes, can report, the future may be a little more rosy. The dividend on the Ws, ordinary shares has been maintained for the fourth successive year at 17+ per cent.—the yield at us. 3d. is 15+ per cent.
Harrisons and Crosfield held their 50th Annual
General Meeting on December 9 at which Sir Leonard Paton, the chairman, asked stockholders
to approve the appointment of Mr. H. 0. Peake as Life President of the company, thus placing him in the same niche in the company's history as the late Sir Eric Miller. This, its 50th anniver- sary, was a great year for the company, said Sir Leonard, and during the year 1958 both the late Sir Eric Miller and Mr. Peake had completed fifty years' service with the company. Extracts from the chairman's statement were reported in our issue of November 14.
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