Company Notes
ar-IOPTHALL HOLDINGS LTD., having dis- posed of its interest in Buchholtz and Co., is now purely a property and developing com- pany. In the year ending March 31, 1962• number of important acquisitions were made' from which a considerably larger income Will b reflected in next year's figures. The most im- portant project on band is the development, .1°IntlY with Moray Estates, of a new town covering 500 acres in Dalgety Bay, Fife, which Will take six or seven years to complete. Other .large development schemes are taking place in Leicester and Coventry. A contract has just been concluded with the St. Austell UDC to develop their town centre, others of this nature are ex- Pected to follow. The chairman, Mr. C. J. OPPenheim, estimates that the new acquisitions will bring in a net rental income of £18,430 in a full year. The total pre-tax figure for the past Year was £1'4,074 and the net figure of £103,094 iincreased a very good cover for the dividend on the 'llereased capital. The chairman forecasts a divi- dend of not less than 10 per cent. for the current Year. The yield of 2.7 per cent. on the 2s. shares al 7s. 3d. is low, but there is certainly room for a. higher dividend than forecast. - British Homophone Ltd., producers of gramo- phone records from customers' own recordings. has returned lower profits at £54,619 before 'ax. This was not unexpected after the loss of
the Rank contract and was not helped by lower profits received from its main subsidiary, Ebenestos Industries, makers of plastic mould- ings. An interest can be taken in British Homo- phones through its 5s. 7 per cent. cumulative participating preference shares which at par give a very good yield of 101 per cent. as the shares participate to 31 per cent. Nearly all the ordinary shares are held by CrystaIate Ltd.
There can be only cold comfort for investors in commercial television companies until the Government discloses its future legislative plans. Until then the companies are faced with rising costs and decreasing advertis- ing revenue. Associated Television is not alone in recording reduced profits. For the year ended April 30. 1962, these fell from £6.45 million to £5.03 million before tax. This company, through Incorporated Television, is the largest producer and exporter of British television films. What is more important is that the company has diversified its interests, which now cover com- mercial television and radio in Australia and Canada and also by its stake in Musak. Pye Records and British Relay and Wireless. The chairman. Sir Robert Renwick, says ihat 'in time our subsidiaries will make a very useful contribution to the income of the company,' and that 'the company could maintain its present dividend from sources other than the profit we make as television programme contractors.' The balance sheet shows a weakened position—the cash item of £650,000 is replaced by an over- draft of £677,000. However, the maintained dividend of 60 per cent. is covered by earnings of 83 per cent., and the 5s. 'A' ordinary shares at 21s. 6d., yielding as much as 13.8 per cent.. could turn out to be a very profitable speculative investment.
Calor Gas Holding Co. Ltd, has registered an increase in pre-tax profits of 17 per cent. for tht year ended March 31, 1962; these amounted to £970,070 against £828,828 after allowing for a heavier depreciation charge. The company has recently spent considerable sums on expansion from which it will benefit in 1962/63. In fact, the chairman. Cmdr. Colin Buist, believes that they will not only be able to increase their sales to their traditional customers—caravans, campers and rural dwellings—but that there are considerable growth prospects in the industrial field for bottled gas. Profit margins may be narrowing but it does look as if the company will have another good year. On the 121 per cent.. dividend twice covered the yield of 3.4 per cent. is not generous on the 5s. ordinary shares at 18s. 6d., but this is partly due to re- curring takeover rumours.
At first sight the results from Home Telerenlals Ltd. for the past year do not appear to be good, for pre-tax profits fell from £256,072 to £135,774 and the maintained 18 per cent. divi- dend was short-earned. However, the future outlook is promising, as there has been a. levelling-off of expansion on the television side and in this section the chairman, Mr. R. G.
ooke. states that there will be no substantial stock write-offs, on conversion of sets from 405- to 625-line transmission. The company has
growing dry-cleaning section, shops and re- ceiving offices now numbering 372, whilst the retailing of domestic appliances has been con- siderably stepped up. A new subsidiary-- Arnolds Centre Shop Properties—is the result of the company hiving off its own shop property. Ali in all..the trading profit should continue to increase and a recovery in the net profit can be expected. The Is. shares at 3s. 41d.. yielding 5.3 per cent.. have possibilities for the future.
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