Company Notes
By LOltiBURY
THERE is considerable reassurance to be gained from the speech made by Sir Duncan Oppenhcim, chairman of British American Tobacco, to shareholders last week. He stated that the long-awaited report of the United States Surgeon General's Advisory Committee on smoking and health did not just point one way as to the effects of cigarette-smoking in promoting lung cancer. The industry's growth might be tem- porarily retarded, but the company with its man- agement skills and unrivalled knowledge of over- seas markets would continue profitably to employ its financial resources. The group has consider- able interests outside the tobacco industry, which include Wiggins Teape, the paper-makers, and Mardon International (printing and packaging). As previously reported, a total tax-free dividend of 20.12 per cent is being paid for the year ended September 30, 1964.
Mr. H. W. Hoover, chairman of Hoover Ltd., makes a point of mentioning in his report to shareholders, that this Government's Bill in re- gard to r.p.m. is of considerable importance to the company and its provisions, when received, will b.: carefully studied. During the year 1963 the home market was intensely competitive, but exports were 21 per cent up on the previous year. As previously reported, the dividend had been increased from 45 per cent to 55 per cent from earnings of 119.4 per cent. The 5s. 'A' ordinary at 45s. 3d. yield 5.9 per cent—a fair return for this type of investment.
Having paid a dividend of 10 per cent for the past five years, during which period profits have steadily increased, the Uganda Company is paying a dividend of 11 per cent for the year ended August 31, 1963. This group is not en- tirely dependent on rubber, tea and coffee planting, for as merchants their other interests include insurance, the distribution of motor-cars and other goods. The country is still politically disturbed, but the 10s. ordinary shares at around 10s. 9d. are quite a fair speculation.
In spite of a larger number of overseas visitors to the Savoy Hotel group during 1963, the very severe winter left its mark on the results with a fall of 13 per cent in pre-tax profits to £555,000. On the doubled capital the dividend is 131 per cent, plus 4 per cent tax-free distribution. Profits Picked up in the latter half of the year and this trend is continuing, so that 1964 should prove a better year. The lOs. 'A' ordinary shares at 28s. 6d., yielding 4.8 per cent, are one of the most promising shares in the hotel group.
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