COMPANY NOTES

THE principal banks have now issued their profits and dividend statements, all of which make excellent reading. Space does not permit a commentary on all of them; but extracts from the chairmen's statements will appear in these columns during this month.

Martin's Bank hold an enviable record, for their 1959 accounts were ready on New Year's Day and were published in the press on January 2. The net profit at £1,161,411 is 101 per cent. up on the previous year. There is to be a final dividend of 8 per cent., making 16 per cent. (equivalent to 20 per cent. on the old capital) on the present capital of £6,595,532, as increased by a one-for- four scrip issue nearly a year ago. Last November the directors announced a rights issue of one-for- two at 7s. a 5s. share. They now forecast that they hope to pay a dividend of not less than 13 per cent. (an equal interim and final) for 1960, in which

case the 5s. ordinary shares will yield 3.12 per cent. at 28s. xd.

In our issue of January 1 we mentioned that the Unicorn Trust would be launching a new Unit Trust on January 15, particulars of which now appear on page 87 as The Falcon Trust. This will be attractive to the small investor who can apply for a minimum of fifty 5s. units costing £12 10s. to give an estimated yield of £4 2s. 6d. per cent. This is above the average income return and will be particularly attractive as a low-priced unit. As an offshoot of the highly successful Unicorn Trust it should prove to be a 'flyer' under the same able management who have chosen a very selected group of ordinary shares which are given in the prospectus.

C. Lindley and Co. are manufacturers of bolts and nuts and engineers' merchants:They have to report a slightly decreased profit before tax of £41,225 for the year to September 30, 1959, which the chairman, Mr. S. A. Wale, describes as dis- appointing. This was in fact what he warned share-

holders might happen, in his report last year. PI he says that sales for the last six months picked uP

by 71 per cent, over the previous six months and that to date the order book shows a considerable increase. New plant is being installed at the Lud" denden Works. With cash balances of £51,230 the company has resources for expansion which arc planned to cost £24,770. The Is. ordinary share) at 3s. 3d. on the maintained dividend of 172 Per cent. yield 5.4 per cent. and do not appear over" valued in view of the expected recovery of profits during the current year.

Associated Engineering Group experienced a sharp upswing in profits during the last six month' of their financial year ended September 30, 19,59

The chairman, Mr. Henry R. Moore, struck a note of caution in his report last year, but he is no"

justifiably optimistic for the future, as the com-

pany's fortunes are closely allied to the boominl motor industry. The group's best-known sub-

sidiaries are probably British Piston Ring Co. (Coventry and Warwick), British Aero Corm ponents (Warwick), Hepworth and Grandage

(Bradford and Shipley), Wellworthy Ltd. (Lyin"

ington, Ringwood and Salisbury), Coventry Radiator and Presswork Company (Coventry and Leamington Spa); they also have overseas interest' in Europe, India, South Africa, Australia and New Zealand. The illustrated report contains a wealth of valuable information for shareholders including a ten-year survey of the company? progress. Profits for the year of £/,955.591 exceeded the record reached last year, the I' profit after tax being £1,522,320 again:'' £1,231,433. The liquid position of the group re: mains strong : £1 million has been transferred tc, general reserves and £87,499 to capital reserve! The dividend, having been held at Ili per cen' I 44 for four years, is stepped up to 171 per cent. 5t!! that with the encouraging outlook and strO0 balance sheet the Ss. ordinary shares at 21s. 6 yield 4.2 per cent. and are worth holding.

Keystone Investment Co. have earned a g°',' revenue of £96,273 for the year ended October 'I" 1959. The net revenue after tax was £44.4(9 against £37,762, enabling the directors to recoill' mend a final dividend of 4f per cent., making 61 per cent. against 51 per cent. for 1958. They had sufficient confidence in the economic outlook the country to place a £250,000 41 per cent. deben' ture with the Prudential Assurance Co. WI

March. No doubt the majority of these funds are

now wisely invested in equities, as the past port' folio showed that 90.4 per cent. was invested Ill ordinary shares of which 52.1 per cent. was in the commercial and industrial markets and 67.8 pet cent. in the UK. The chairman, Mr. M. G. Rice, may perhaps give shareholders more infor;, mation at the annual general meeting on Januar) 19. The I:1 ordinary shares at 32s. 6d. yield 4 Per cent.