Company Notes
By LOTHBURY
THE Royal Bank of Scotland has followed the pattern set by the other big banks in making higher profits from the existing high interest rate structure and by a reduction in tax provisions under the new arrangements. Profits of the group, including the two clearing banks, Williams Deacon's and Glyn Mills, were £3.118 million in 1965 compared with £1.997 million. The dividend has been raised by 2 per cent to a total of 19 per cent. At 83s. the £1 shares 'yield 4.6 per cent. The chairman of Williams 'Deacon's Bank made some' interesting remarks in his report for 1965: (1) the bank was still expanding; (2) emphasis is still laid on the.quality of the staff, for which the bank is notable; and (3) he considered that the current year would be difficult, in many respects, for the country.
It was expected that the Steel Company of Wales would do better in 1965 than in 1964, when results were seriously affected by a strike. The company is responsible for 72 per cent of the tinplate and 25 per cent of the sheet metal trade in this country, but even so, the chairman, Sir Julian Pode, considers that rising costs and government policy are likely to add to the com- pany's problems. It also appears that the present rate of dividend, 10 per cent, is suspect in future. The shares stand at 20s. 9d.
Reliable Properties had the Stock Exchange quotation for its shares restored last November. The balance sheet for the year ended June 30, 1965, discloses a strong position, with cash resources standing at £320,000. At present the company's portfolio consists entirely of leasehold flat properties, with sixty-eight years or more to run. Possibly the new board of directors will, in view of the implications of the Rent Act, be considering other forms of property invest- ment. On the 8 per cent dividend the 5s. shares a 6s., yielding 6.8 per cent, look fairly valued.
The final figures for Woolworth's for 1965 were disappointing, especially as the dividend was held, for thy third year running, at 20 per
cent, with a final of 144. per cent. The company has on hand a £37 million development pro- igratrune, about which the chairman may give some news at the annual meeting. The 5s. shares at 20s. 9d. yield 4.8 per cent.
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