Company Notes
By LOTHBURY
SIR PHILIP WARTER, chairman of Associated British Pictures, warns shareholders that there will be sonic reduction in profits this year, as the ITA levy will account for an extra £1 million: However, gross advertisement revenue, less agency commission, for the year ended March 31, 1965, reached the record figure of £9,911,000, but cigarette bookings on TV are banned from the end of this month. However, cinema profits improved and a loss on film production was turned into a profit of £295,000. The liquid strength of the balance sheet suggests that, in spite of corporation tax, although net earnings may be down, there is little fear of the 30 per cent divi- dend, which has been paid since 1959, being reduced. The 5s. shares at 24s. yield 6.2 per cent.
The net profit after tax for the year ended March 25, 1965, from Centrovincial Estates amounted to £121,375 against a previous amount, of £93,020. The company, whose chairman is Mr. Joseph Gold, is concerned with shop and office development, mainly in the provinces, which last year increased its interests by the acquisition of the Golby-Hale Property and Investment Corm pany. Other interests are being built up in France and Spain. The Yorkshire Insurance CompanY and Barclays Bank Pension Fund have large financial interests in the company, whose future could be materially affected by the Finance Bill, Although about 25 per cent of last year's profits were derived from property dealing, the chairman is confident of maintaining the 25 per cent divl' dend for the next two years on the 4s. shares. now 18s., yielding 5.5 per cent.
Royston Industries has interests divided between musical instruments, electronic in' struments, engineering and the manufacture of batteries. Pre-tax profits for the year to March 31, 1965, were considerably up at • £572,793, helped by pre-acquisition profits from Nickols Automatic. For the first time, the Midas flight venture contributed a small profit after a write- off of all previous heavy research and develop' ment expenses. Burndept Electronics also made a first-time profit. The management, under the chairmanship of E. R. Summers, has a forward look about it, in acquiring where possible the
• freeholds of its factories and of houses. for its executives. The dividend is increased from 20 per cent to 25 per cent on a larger capital. The is. shares at 5s., yielding 5 per cent, are worth holding.
Last February, London Tin declared a second interim of 324 per cent, making a total of 40 per cent for the year. The company's tin-mining interests in Malaya and Thailand still account for 60.5 per cent of its total interests and those 01 Nigeria for another 12.5 per cent, so that divers" fication into other industrial spheres in other countries has not been greatly increased. Over the past twelve months the 4s. shares have fallen from 22s. 9d. to 14s. 6d., yielding now nearly 11 per cent. They could fall still further as the future tax factor is not in the company's favour.
Gwent & West of England Enterprises has de- clared an interim dividend of 20 per cent for the year ending October 31, 1965. Anglo Auto Finance and its subsidiaries has returned a slightly higher profit (before tax) at £523,000 for the six months to April 30, 1965. The general trend of Mr. Julian Hodge's report is that the motor division is progressing very satisfactorily, but until the ramifications of the Finance Bill are clarified, it would be unwise to forecast profit for the Group for the full year. The is. shares are now 4s. 6d.
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