COMPANY NOTES
pand 0. preliminary figures reveal a heavy decline, gross profits having fallen from 7.6 million to £10.2 million, which was not un!xpected, when it is remembered that the slump in freight rates set in over two years ago and is 110A' being reflected in shipping earnings. Sir William Currie, the chairman, states that this fall in profits has not yet been arrested; perhaps his Critics of a year ago, who suggested that the com- pany's tanker-building programme was too big and too late, will now realise that these new tankers, for which charters have already been fixed, will be useful revenue-earners for the future, as until world trade improves there can be little chance of the total tonnage of cargo and tramp liners now afloat being fully employed. It is Imposed to extend the company's passenger- carrying interests by building two new ships at a Cost of £30 million to operate in the Pacific. Some of the subsidiaries, such as Orient Steam and New Zedand Shipping, have done well. It should also DC remembered that P. and 0. control two ,very line civil airlines, Silver City and Britavia. In sPite of the reduced profits the maintained II (Continued on pttge 386)
per cent. dividend is covered nearly three times so that the £1 ordinary shares at 33s. 3d. to yield 6.6 per cent. are well worth holding.
Rugby Cement has once again produced record profit figures, rather surprisingly, as the chairman, Sir Halford Reddish, a year ago said that he did not expect production and deliveries from the UK works to reach the level of previous years. How- ever, during the second half of the year, demand picked up so that most -plants in the UK reverted to full capacity while those in Trinidad and Australia were also busier. Preliminary figures show that net profits have improved from £713,673 to £828,671. Shareholders are to receive an increase in dividend from 221 per cent. to 25 per cent on the 5s. ordinary shares and from 125 per cent. to 150 per cent, on the is. 'A' ordinary shares. The company is to raise juSt over £1 mil- lion by a rights issue in the proportion of 1 in 6 at 21s. 6d. each, making the rights worth around 2s. each at the present price of 32s. 6d. The new shares are issued on a 5.8 per cent, yield basis as against a 4.25 per cent. yield offered on the exist- ing shares. Investing employees, holding Is. 'A' shares, are particularly lucky as they will not have to subscribe any money to this new issue but will benefit to the extent of 6 per cent, of the proceeds.
Ross Group is the new name for Trawlers Grimsby Ltd., for the various diversifications of trading have brought about a change in the corn-
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