Company Notes
By LOTHBURY
BOWMAKERS, the hire-purchase group, re- cords a marked recovery for the year ended October 31, 1963. It has had the benefit of a full year's working since the reorganisation of the company into four regions. Profits before tax have jumped from £180,843 to £1,100,099; the net balance is £601,791. The 3 per cent interim dividend is followed by 5 per cent, making 11 per cent against the previous year's 5 per cent. The chairman, Sir John G. Cowley, states that a better quality of business has been under- written, and this standard will be maintained. An innovation is the establishment of an Interest Equalisation Reserve, to take care of changes in the rate of interest paid on borrowed money. Another interesting point is that the com- pany's main scope for expansion lies outside the motor trade, in financing progressive and ex- panding firms. Now that the company's business is established on a firmer basis there is scope for rising dividends. The 5s. shares at 12s. 9d. yield- ing 4.2 per cent have a healthier look about them.
Lord Wilmot, of Illingworth Morris, the worsted spinners, seeks to increase the company's borrowing powers and to raise ill million by a rights issue. The recently acquired companies of Huddersfield Fine Worsteds and Joshua Hoyle will between them require nearly £41 million and bank overdrafts have grown to £5.8 million. Net profits after tax have risen to £411,657 for the year to September 30, 1963, against £402,967, The dividend is increased from 13.3 per cent to 14 per cent. The chairman's remarks on current trading are most encouraging. The first quarter's results are well in excess of those at the same time in the previous year and full-time working at the mills can be expected for months ahead. This improvement has come at the right time for the rights issue. The 4s. shares at 7s. 9d. give an excellent yield of 7 per cent. In spite of the worst drought for thirty years in Malaya and a severe winter, Castlefield (Kiang) Rubber Estate did very well to increase its crop by more than 5 per cent. Pre-tax profits at £117,607 for the year ended June 30, 1963, were little changed from those of 1961-62. The final dividend of 25 per cent, together with the interim of 10 per cent, makes a total of 35 per cent against 30 per cent, An increase was not expected in view of the declining price for rub- ber. The 2s. shares at 4s. 9d. yield 14.5 per cent.
For the first time since the war The Abbey National Building Society were able to operate virtually without any restrictions on mortgage lending. Consequently mortgage loans for 1963 totalled £112 million, of which 99 per cent were in respect of private house purchases for owner- occupiers. This is an increase of 39 per cent over 1962. Assets now exceed £559 million.
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