Company Notes
IN his statement a year ago the chairman, Mr. W. H. Gatty Saunt, warned share- holders of Amalgamated Roadstone Cor- poration to expect lower profits for the ensuing year. The substantial reduction of constructional and maintenance work on the roads has had the effect of reducing the company's trading profit by £213,442, but the net profit (after tax) is only down by £69,567 at £253,684 for the year ended October 31, 1958. The company controls Amalgamated Limestone; this concern made a net profit of £196,000 and from its sale of its cement works at Plymouth has repaid the parent company's loan of £500,000 and paid them 6d. per share last November and will pay them a further 2s. per share in August. The company also owns Ulster Limestone Corporation and the British Standard Portland Cement Company of Kenya. An interesting point arises from the chairman's statement that, on a recent re-valuation of the company's assets, these are now worth just under £71 million against the written-down value in the balance sheet of £4 million. This figure excludes the company's valuable interest in Amalga- mated Limestone. He also reveals that negotiations are still proceeding regarding a possible amalgamation with Tarmac Ltd. The dividend on the 10s. ordinary shares is maintained at 15 per cent. so that at 38s. x.d. to yield 3.8 per cent. the shares although fully valued are a sound holding, particularly as the outlook for the current year promises to be better than last.
Lethenty Tea Estates have secured a crop of 1,245,681 lbs. for 1958 and an average sale price of 40.38d. per lb. against 39.06d. per lb. for 1957. This has produced a profit of £8,059. Production costs have risen a little but the estates still give a remarkably high yield of 1,297 lbs. per acre.
This ably managed company has diffi- culties ahead which no doubt will be surmounted to justify the present price of 7s. 6d. for the 5s. ordinary shares; the proposed dividend is 10 per cent.
At the beginning of this year A. Wilson's Stores' 2s. ordinary shares were successfully introduced at around 7s. 9d. and are now around 11s. The market is looking ahead, for the accounts are not due until March, 1960. However this price may prove to be justified as the company has added to its interests London Town Dresses (manufac- turers for the popular market) which it is estimated will increase Wilson's profits by £70,000 p.a. This should increase earnings to around 80 per cent, and so permit a dividend of 40 per cent. in which case these shares in the popular stores group would not be overvalued at today's level.
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