Company Notes
By LOTHBURY rywo weeks ago we published a brief summary I of the accounts for London Asiatic Rubber and Produce for 1964. Mr. John Sands, the chairman, explains to shareholders that since the recommendation of .a 25 per cent dividend (since the interim paid in January) there were considerable doubts as to whether it would be possible to pay it. Fortunately, Clause 78 of the Finance Bill has now been amended to maim this possible. Thus a total dividend of 30 per cent becomes payable on the capital increased by a one-for-two scrip issue last year. Recent disposals of small parcels of land will go to- wards financing the company's new palm-oil factories. Future taxation will undoubtedly have an effect on future dividends. The 2s. shares are therefore naturally giving a high yield of 18 per cent.
Lord Teynham uses some space in his annual report to shareholders of Martin Cowley, civil engineers, to point out the difficulties that lie ahead for a company of this nature. The trading profit has greatly increased from £434,551 to £742,875 for 1964, but is largely offset by a much higher depreciation charge and additional reserves for future taxation. The company's in- terests beyond civil engineering include building, open-cast coal mining, the manufacture of con- crete blocks, and garage proprietors. The directors have in mind increasing the working capital in the near future, probably by a rights issue. This would seem particularly desirable as there is now a bank overdraft of £407,000 and Mr. Cowley (managing director) and his wife are creditors of the company for £213,000 and have waived their right to the 12+ per cent dividend on their two million 2s. ordinary shares, which, at 2s. 6d., yield 51 per cent.
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