Company Notes
By LOTHBURY
THE Britannic Assurance Company has pro- duced excellent figures for its centenary year, 1965: the ordinary branch premiums on new business were up by 13 per cent and the industrial branch held its 8 per cent growth. The company has benefited from its policy of invest- ing in equities and is now earning close on 74 per cent on its funds. It also has a large amount (£36.9 million) invested in mortgages at 64 per cent. The 5s. shares at £74 yield 4.3 per cent on the 6s. Id. dividend, up from 5s. 3d.
• W. A. Hills and Sons (formerly a subsidiary of City and Country Properties), builders and contractors of Colchester, has fulfilled its fore- cast in February by declaring a 15 per cent dividend, making a total of 30 per cent for the year ended September 30, 1965. Pre-tax profits of £169,492 exceeded the prospectus forecast. An interim dividend of 174 per cent is declared for the current year and the board expects to make this up to a total of 30 per cent. On this basis, the 2s. shares at 7s. 6d. give a promis- ing yield of 8.4 per cent.
The accounts of City and Country Properties for the year to September 30, 1965, reflect the disposal of its more than 50 per cent interest in W. A. Hills and Sons (builders), now a public company. These moneys have been re-invested in industrial and commercial properties. The after-tax net profit of £66,268 is therefore not comparable with the previous year. The dividend of 23 per cent is maintained. The chairman, Mr.
John Tilling, points out that the Petticoat Lane building is not yet fully let, so that maximum rental income cannot be expected this year, but subsequent years will be more beneficial. He also mentions that the company has taken a 125-year lease on the Londonderry House (Park Lane) site. The hotel being erected there will be finished in two years' time and should result in an income to the company of £30,000 per annum. These facts, plus an increased income from the investment of the 'Hills' money, make the 2s. shares at 5s. 6d., yielding 8.3 per cent, a very attractive investment for the future.
The report from the Huddersfield Building Society for 1965 is one of further progress. Shareholders and depositors' balances increased by £6,781,611 and mortgage advances during the year amounted to £10,239,932. Trustee in- vestments and cash are now up to £11,172,373, or 17.66 per cent of total assets—a very strong position. The society opened two new branches last year which will add to its ever-growing business.
The property and general revenue account of Beaumont Property Trust, for the year ended September 30, 1965, has increased by more than 20 per cent. For the third year running the dividend is maintained at 1 1 per cent from an after-tax net profit of £366,689. This well- managed property investment and dealing com- pany, of which Sir Cyril Black is chairman, dis- closes a fall in value of freehold and leasehold properties of nearly £1 million, which is almost entirely accounted for by the sale of low-yielding shop properties. Although the corporation tax and capital gains tax will have a damaging effect on this type of company, says the chairman, it should be possible to maintain the dividend. The 5s. shares at 8s. give a good yield of 7.2 per cent.
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