Company Notes
By LOTHBURY
FOR the third year running, the trading profits of J. Brockhouse, the old-established com- pany of general engineers at West Bromwich, declined. But this may be the turn of the tide for the company, whose year ended September 30, 1963, for since then there have been definite signs of improvement relating to the company's field of operations. The chairman, Mr. J. L. Brockhouse, states that there has been some im- provement in overseas activities, especially in Canada, Rhodesia and South Africa. The sub- sidiary Brockhouse Steel Structures have supplied a small amount of steelwork for building proto- type dwelling houses by the Clasp .system. This system is now used successfully in Italy and Germany. It may have a future in this country. The net profit fell from £513,000 to £479,000, but covers the maintained dividend of 12+ per cent 1.6 times. The £1 shares at 47s. 6d., yielding 5.2 per cent, now look a promising investment.
Thames Estates and Investments is blessed with really good management under the chair- manship of Mr. S. H. J. Bates and ample liquid resources for future development. Unlike most other estate development companies, it ,charges all development expenses to revenue account. In this way, and by the high selectivity of its pro- jects, it is able to forecast a 50 per cent surplus on the £1+ million developments which should become income-producing by the end of 1964. It does not resort to institutional borrowing in any form, but raises the money for each block of development by a debenture issue secured on the previous block. The company owns flat property in London and Leigh-on-Sea, office blocks in London and the southern counties and shop property in and around London. For the year ended June 30, 1963, the net profit increased from £32,000 to £45,000 and the investment in- come from £123,000 to £167,000, a most satis- factory result. The dividend is increased from 5 per cent to 6 per cent and a one-for-five scrip issue is proposed. The 5s. shares at 12s. 6d., yield- ing 2.8 per cent, are extremely attractive for the future, A 50 per cent rise in the price of sisal, together with normal weather conditions resulting in higher production, were responsible for a vastly better result from East African Sisal Estates for the year ended June 30, 1963, A loss of £12,728
was turned into a pre-tax profit of £82,106. The
net profit was £54,000. Shareholders are rewarded with a dividend of 20 per cent against nil. The chairman, Mr. G. R. S. Doyle, hopes, given a steady price for sisal and fair weather, to report favourably again this time next year. This is a
very speculative share, but, as such, is a good buy now for those with iron nerves looking for a high return on their money for,twelve months. The 10s. shares at 10s. 9d. yield 18.2 per cent.
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