Company Notes
By LOTHBURY PRELIMINARY figures already received fro Anglo Auto Finance are followed by an excellent and full report from the chairman an managing director, Mr. Julian S. Hodge. While most other hire-purchase companies have been floundering, weighed down with bad debts, Anglo Auto has scored an annual increase in profit for the past four years—in 1960/61 a 100 pe cent. increase and now one of 61 per cent. fo the year to October 31, 1962. Profits are u from f318,570 to £512,813 (these include those of its subsidiary, Hodge Industrial Securities) and the dividend is again stepped up from 35 Per cent. to 45 per cent, on the capital increased by a recent one-for-eight rights issue. The chair- man considers that 1963 will be a year of fulfilment. He rightly points out (I) that the company has yet to feel the benefit of the i■ million rights issue; (2) that the company slid not reduce its deposit rate until July and 13) that further expansion of dealer outlets is Planned by conversion of cinemas into garages. There seems little doubt that the dividend will be at least maintained on the capital to be in- creased by a one-for-ten scrip issue. The I s. shares et l3s. yield 3.5 per cent., a good return from very progressive company. There are signs that profits from the Mitchell Cotts Group are on the road to re- covers. The group carries on business as inter- national agents, airways, passenger and insur- ance agents. The home trading company did Well, as did the engineering subsidiary of Alidays and Onions in Birmingham. The group's overseas interests are in Canada, South and East Africa, Iraq, Hong Kong and Libya. Many of the countries have been trouble spots, so that naturally profits have been adversely affected. The net profit after tax for the year t,0 June, 1962, improved from £309,300 to £421,876, resulting in a small increase in the dividend from 12+ per cent. to 15 per cent. There is still some way to go before the com- Pally gets back to the 25 per cent. rate paid in 1960 and earlier years. No doubt the chairman, Mr- H. C. Drayton, will have something to say to shareholders at the aralual general meeting, as to future prospects. The 5s. shares at 7s. 9d., yielding 9.3 per cent., reflect the uncertain nature of the company's business, due to its geographical interests. When these improve, so should the price of the shares.
Holt Products, manufacturers of special chemicals for use in the maintenance of motor vehicles, rather surprisingly produced better re- sults for the year to September 30, 1962. Pre- tax profits were up from £330,455 to £361,585 and the dividend from 331 per cent. to 40 per cent. covered 2.6,times by earnings..Sales of new products, which are continuing to expand, to- gether with good export sales were responsible for the excellent results. Concrete paint, one of its products, could easily meet with a larger demand this year. The balance sheet is strong with plenty of room for a higher dividend, even allowing for the proposed one-for-three share issue and that the -`B' shareholders have now converted into ordinary shares. A buses of the 2s. shares, now I6s., will have to accept a very low yield on a strictly adjusted dividend rate but this may prove to be justified.
Racing and football enthusiasts will - know Webster's Publications, and shareholders will, be pleased to learn that for the fourth successive year they are to receive a dividend of 60 per cent. Group profits before tax again exceeded £100,000. The net profit was £49,190. The com- pany publishes the Racing and Football Out- look, Racing and Football Outlook's Weekend Special, Racing Specialist and various annuals. The ls. shares at 5s. 6d. are a sportsman's share giving a high income yield of nearly 11 per cent.
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