Company Notes
By LOTHBURY
Wrut the report from Arthur Guinness and Son for the year to September 30, 1963, comes a forecast of a dividend for the current ycar. This, the directors state, will be by way of an interim of 8 per cent and a final of at least
11.5 prr cent, making a total dividend of 19.5 per cent on the capital now to be increased by a one-for-five scrip issue, partly in preference and partly in ordinary shares. The group pre- tax profit for 1962-63 increased from £7.768 million to £8.413 million; the dividend is up by 1 per cent to 23 per cent. From Viscount Elve- den's report it seems that an increase in the sales of draught Guinness can go some way to add to profits. The recent link with the Courage Barclay group could assist in this respect. Other promising factors are the new Nigerian Brewery and the new Harp lager brewery at Alton. These are sufficiently good reasons to confirm that 'Guinness is good for you,' and so are the 10s. shares at 57s. 3d., yielding 4.1 per cent.
Having cut the interim dividend by 2.5 per cent, the Granada Group is restoring the cut in the final payment, thus maintaining the total at 45 per cent. But group profits are down from £9.15 million to £8.1 million. After depreciation and tax, the net balance is £2.128 million. The preliminary figures are far from informative. The group's TV subsidiary in the previous year was responsible for about 90 per cent of total profits. It looks as if there will be a considerable drop in the year ending September 30, 1964. The question is, can this be made up by profits from the other interests-television rentals, cinemas and confectionery shops,etc.? It remains for the chair- man to shed some lighj on the future. The 5s. 'A' ordinary shares at 28s. 3d. yield 8.2 per cent.
Since the close of the company's financial year on August 31, 1963, Mr. Lionel Jacobson, chair- man of Montague Burton, reports that the com- pany's works have been at full pressure and that record sales have been achieved. Another im- portant announcement concerns the controlling interest acquired in the Alba Clothing Company of Paris, which the chairman considers will prove a valuable addition to the group's interest on the Continent. As manufacturers and tailors of men's clothes, the company provides about one suit in every three worn in the UK. There was a slight fall in the net profit from 11.723 million to £1.636 million. The dividend of 7 per cent is maintained on the 10s. 'A' (non-voting) ordinary shares, which at 20s., yielding 3.5 per cent, are a very promising investment.
Websters Publications, the small and success- ful company, who publish the Racing and Foot- ball Outlook and other sporting publications, is maintaining the dividend of 60 per cent for the year to August 31, 1963, and is adding a one-for- nine scrip issue. The trading profit was down slightly from £102,000 to £95,000, for which the cancellation of racing and football at the begin- ning of the year was responsible. This is a sports- man's share at 7s. for the Is. shares; they can be bought as a fair speculation to yield 8.6 per cent.
There is encouraging news from the directors of Lines Brothers, toy and baby-carriage menu- facturers, that group sales have increased, but it seems unlikely that the dividend cut will be restored. Last year the payment was reduced to 20 per cent from the previous rate of 26.6 per cent. Apparently the increase in sales is attribut- able to new acquisitions, whose profits will not be reflected in the past year's accounts. The chairman's report will no doubt give some indi- cation of future prospects. In the meantime, the 5s. shares at 26s. 6d., yielding 3.7 per cent, look fully valued.
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