COMPANY NOTES
PROPERTY
rest of the equity market, but share- s company shares have suffered a fall
ml the in well-managed companies, soundly eased, have nothing to fear. I,Western Ground Rents came to the market in e,46 With a debenture issue, in respect of land, mPrising about 12,000 ground rents, originally ned by the Marquis of Bute. Since then Cardin ruaY has grown into a profitable town, so that the ieversions and freehold ground rents, as they fall n, must become increasingly valuable. For the Y!ar ended December 28, 1959, there has been .0"11Y a small increase in revenue to £298,772, with 40,net profit of £86,291. This provides earnings 41 35 per cent, for the 25 per cent. dividend. Sir i.;11,t_lrew Rowell, the chairman, in announcing a IL'gnts issue of one for four at 5s. per share, says ,'!at the £100,000 it will provide will further itsstst in the expansion of the company. Investors 411b,lhe Past have expressed their faith in this very 'e board of directors and should have every c°nlidence for the future. Their belief in the °111Pany'5 success has shown them an apprecia-
development subsidiary has returned profits for pushing the 5s. ordinary shares up to 72s. 6d. at which price they yield only 13- per cent. This is an exceptionally low yield for any investor to accept, but with a very strong balance sheet and excellent management, it may prove to be justified for those who are patient. A property company quite different from the above is Brixton Estates, which through its development subsidiary, has returned profits for 1959 of £130,543. This is an excellent result and is an increase of 50 per cent. over 1958. Last year the capital was quadrupled by a three-for- one scrip issue, but the dividend is increased on the enlarged capital to 123 per cent. This is another example of a very well-managed com- pany. Under the chairmanship of Lieut.-Colonel Sir Francis Humphreys, the board by judicious investment has built up the value of these shares over a short period. At 23s. 6d. the .5s. ordinary shares yield only 2.7 per cent., but this must be accepted by those who believe that there are further plums to come from this company.
Mr. Peter Scott, chairman of the Provincial
Insurance Co. Ltd., reports a change for the better in the company's affairs, for 1959, premium income having increased by a little more than £500,000. The Canadian business has been ser- iously pruned and will be further reduced in the coming year—this no doubt accounts for the underwriting profit of £99,097 against a loss of £84,101 for the previous year. The only other weak spot, the chairman advises, is their large account in South Africa, but their underwriting experience has been quite satisfactory in other overseas countries. The consolidated balance sheet shows total assets of around £14,000,000. and investments of about £10,000,000 are shown at or under cost. There has been an appreciation of some £5,000,000 in the company's holditigs of ordinary shares. The board of directors has now put into operation the scheme outlined last year, whereby the company's employees could pur- chase the ordinary shares of the company on favourable terms, and over 43,000 shares have already been taken up. The dividend has been increased by 3d. to a total of 2s. lid. per LI ordinary share.
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