Company Notes
By LOTHBURY
IN last week's issue there appeared brief 'extracts from the statement by the chair- man of F. W. Woolworth. These included a ten- year profits record. The before-tax figure shows a consistent increase, that for 1962 improving by 7.3 per cent. Investments are not standing still, as some may think, as the directors have approved a store development programme of £31 million to be spread over the next few years. Another point is that the company, for the first time, has invested in trading companies with whom they are closely associated and will con- tinue to do so as and when suitable oppor- tunities arise. At present this investment amounts to only £255,000. Recent advertising suggests that the company is considerably expanding the food section in its stores. There is still growth in Woolworth's; the 5s. shares at 53s. 3d. yield 3.5 per cent. on the 37.5 per cent. dividend and probably offer more scope than Marks and Spen- cer shares, which are lower on a 2.8 per cent. yield basis.
For the eighth successive year Atlas Stores report increased trading profits for the year to October 31, 1962. The group net trading profit of £291,000 compares with £266,000; the after- tax profit was up from £92,000 to £102,000. These excellent results have resulted in a 2 per cent. increase in the dividend to 22 per cent., plus a one-for-two bonus issue. It is intended to maintain the higher dividend on the increased capital. The company, as makers of asbestos cement roofing materials, concrete products, paving slabs and PVC rainwater pipes and gutters, etc.. should continue to do well as there should be an increasing demand for its products. Mr. Bernard Davis, the chairman, is confident that, subject to a reasonable government policy, his company should benefit from the consider- able sum it is spending on new plant and equipment. The 5s. shares have improved to 34s. 3d., at which price the yield is 3.8 per cent.
Once again Mr. A. S. Horsley, chairman of Northern Dairies, reports a record profit for the year to September 30, 1962. This time pre-tax profits, after a much heavier depreciation charge, have jumped from £626,000 to £729,000. The net profit was £401,000 against £344,000. The dividend is repeated at 10 per cent. and also the one-for-ten bonus issue, which it is hoped will be repeated annually. There is also to be a further one-for-ten special bonus in respect of capital gains. The chairman reports that in this category over £500,000 was made by the sale of Mr. Whinny (Holdings). The company's other ice-cream and frozen foods section had 'a best- ever year' in spite of the disastrous summer and won the gold medal for ice-cream at the Dairy Show at Olympia. The company continues
vigorously to expand its dairy interests and in the past year has added to its engineering and garages businesses at Kingston-upon-Hull, Spald- ing Moor and Belfast. A share of this kind, with its obvious growth potential and the dividend covered 3.7 times, gives a deservedly low return. The Ss. shares at 27s. 6d. yield 1.8 per cent.
City Business Properties made very good pro- gress in the year ended September 30, 1962, by increasing its property interests, which are now in the balance sheet at £2.5 million against £1.23 million. The property breakdown is now: shops and offices 57 per cent., industrial 9 per cent. and flats and residential 34 per cent. Net profits at £72,000 are £35,000 higher. The pUrchase of Penmount Estates only contributed four months' profit to this figure. The building subsidiary, Fassnidge Sons and Norris, did well in con- tributing £32,000. The chairman, Mr. J. W. Skelsey, states that, as a result of the new property investments, the company's net income will increase over the next two years. With a final of 8.5 per cent. the dividend has been stepped up by 2 per cent. to a total of 16 per cent. The 4s. shares at 1 ls. 3d. give an attractive return of 5.8 per cent
Cable and Wireless (Holdings) reports another good year for 1962, gross income from in-
vestments rising from £2.202 million to £2.530 million, with total receipts up from £2.346 million to £2.663 million. With a considerably higher tax charge, the net profit was £1.345 million against £1.161 million. Shareholders can be well pleased with these figures. After transferring £250,000 to general reserve, against nil, the directors have decided to increase the final divi- dend to 42el. against 3d., making a total of 71d. (12.5 per cent.). The 5s. shares at 17s., yielding 3.6 per cent., are one of the consistently good investment trust shares to hold.
The lack of labour during 1960-61 meant that the Monotype Corporation, makers of type- casting and setting machines, fell behind with deliveries from their Surrey factory. The decision to open another factory at Dunfermline has cor- rected the situation and was no doubt partly responsible for an improvement in turnover and a rise in the trading profit to £1.007 million for the year to September 30, 1962. -After-tax profits have risen from £385,000 to £402,000 and the dividend is maintained at 8 per cent. for the third year running. The chairman's report is awaited, and no doubt will give some indication as to the future outlook. In the meantime the
shares at 47s. 6d., yielding 3.3 per cent., ap- pear to be fully valued.
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