Company Notes
By LOTHBURY
A WIDE field is covered by F. Francis ..and Sons (Holdings), manufacturers of tin boxes, steel drums, lifts, die castings, com- mercial boilers, crown corks and plastic products. In spite of an appreciable increase in sales for the first three months of the current year re- ported by the chairman, Mr. Frank Fox, lower profits have resulted. Net profits for 1964 rose to £270,406 from £239,496 and the dividend was ' increased to 21 per cent from 19 per cent, the rate paid for the past several years. This year may prove that this prosperous company may experience a check in its profits and, having re- gard to increased taxation, the 5s. shares at 17s. 3d., yielding 6 per cent, look fully valued.
Last year, Highams, the bedding and industrial- fabric manufacturers, suffered severely from ' floods at two of its factories.' Pre-tax profits con- sequently fell from £596,094 to £485,803 for the year ended March 31, 1965, but the dividend was held at 16.7 per cent. The company is now faced with another problem-an acute shortage of labour. The newly-acquired Royton Textiles will strengthen the set-up. The balance sheet is healthy, but it may take another year before the company is again running smoothly. Under the circumstances, the 5s. shares at 12s., yielding 7 per cent, are not yet particularly attractive.
Lord Luke, chairman of Bovril, tells share- holders that 1964 was a good year of progress. Pre-tax profits of the group, a substantial part of which was earned in Argentina, rose by £114,370. The net profit amounted to £728,064 from which
a 12 per cent dividend is to be paid. The chair- man gives a full review of the group's many in- terests, which include corned beef, Marmite and Ambrosia milk products, which are now selling in over a hundred different countries. Last year's good profits were greatly enhanced by the record price of 50s. per lb. obtained for meat extract. The current year, states the chairman, cannot be viewed (for various reasons) with the same
optimism. The £1 deferred shares at 35s. yield 6.8 per cent.
Chairman Mr. G. E. Liardet, of Simms Motor and Electronics, makes it clear to shareholders that last year's setback in profits was due to the cost of the new research and development estab- lishment. Simcon, the subsidiary in heating, ven- tilating and air conditioning, also contributed to this state of affairs by making a substantial loss. Leyland Motors has adopted the Simms Mini- mec pump as standard equipment in its range of engines and F. Perkins has decided on Simms turbochargers. The chairman suggests that original equipment is selling at a loss which could be serious and that there is still an acute pressure on profit margins. The 5s. shares at 8s 9d., yielding 7 per cent, do not offer very much. Chairman Sir Denys Lowson reports lower profits of around £900,000 from Australian Estates for 1964. This was due almost entirely to the lower world price for sugar, but none the less the results are the second best in the company's history. In spite of a fall in the price of wool, sheep properties have produced ex- cellent results. The company's fine new wool store was opened last year at Victoria. The divi- dend on the £A1 ordinary shares is 11 per cent plus a 3 per cent bonus, making a total of 14 per cent on capital increased during the year by a one-for-two bonus issue. The £1 shares at 25s. yield as much as 11 per cent, which allows for anticipated higher taxation and a possible fluctuating profit for a company deriving its profits from commodities.
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