Company Notes
GENE.RAL ELECTRIC have produced profits before tax of £4.25 million against last year's gross profits of £4.76 million; and in spite of the cut in the interim dividend in January, the final has been increased by 4 per cent. thus maintain- ing the total rate of dividend at 10 per cent. The point worth noting is that the final three months of the financial year gave improved trading results which may augur well for the future. It should also be noted that the research expenditure to date on the Hunterston atomic power station contract has been written off and a further provision of £250,000 has been made against this contract. The £1 ordinary shares have improved to 34s. at which price the yield is 5.8 per cent.
British and Commonwealth Shipping, it will be seen from the chairman's report, has experienced a very difficult year and there are still rocks ahead. However, there is every promise that the company will successfully ride the storm. The 10s. ordinary shares at 39s. 6d. yield 5.05 per cent. onthe 20 per cent, dividend which is covered 2.6 times by earnings, but the chairman warns shareholders that unless the outlook Improves, it may not be possible to maintain this rate of payment for the current year.
Stewart and Ardern, the principal BMC dealers and stockists in London, have, as was expected, produced excellent accounts for the year ended March 31, 1959, as they have benefited from the greatly increased sales which have occurred throughout the motor industry. Net profits, after tax, have risen from £187,083 to £210,070 and accordingly the dividend has been increased from 20 per cent. to 55 per cent. Shareholders are also to benefit from the sale of certain capital assets by a free two-for-one issue of 2s. ordinary shares which will increase the Issued ordinary capital to £900,000. The outlook for the motor industry is still good. The 2s. ordinary shares at 16s. yield 6.85 per cent.
The chairman of P. Winn (Barking) reports that results for the year ended December 31, 1958, were disappointing, owing to difficult trading conditions in the non-ferrous metal business and additional costs in developing the British Railways Collie.° packing case hire service. It is proposed to seek further borrowing powers to promote this promising new packaging line which, together with the building materials and cardboard box manufactur- ing businesses, the chairman believes will contribute increasing profits this year. The trading profit for the group was £40,011, resulting in a net profit after tax of £16,561. The 4s. ordinary shares are around par; the dividend proposed is 10 per cent.
Erratum. The price of the 5s. ordinary Lethenty Tea shares, quoted in these notes last week at 7s. 6d., should have been 5s. 6d. each.
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