Surprise Issue By I.C.L In London

Press, Volume CVI, Issue 31161, 10 September 1966, Page 18

Surprise Issue By I.C.L In London

(N.Z.P.A. Reuter—Copyright)

LONDON, September 8

Imperial Chemical Industries, Britain’s biggest industrial giant, sprang a £6om surprise in London today when it announced another big new capital raising plan.

The new loan stock issue came a year after 1.C.1. broke the earlier record with a £som capital raising operation. The new capital will be raised through a £6om unsecured loan stock carrying interest at 8 per cent and offered at £9B per £lOO nominal. Repayment date is 1988-93. Existing shareholders will get preference in the allotment.

The company, in the most eagerly awaited dividend and profits statement of the year, said it was maintaining its interim dividend payment at last year’s level. Profits for the first half of the current year were reported at £slm before tax, a drop of £sm on last year's halfyearly figure. This performance was better than expected. There had even been some talk that 1.C.1. might cut its dividend. The company forecast that pre-tax profits for the full year were likely to be about £lom less than the £lolm for 1965.

Though 1.C.1.’s profits were, down in the first half of the year, total sales rose by £33m to £44Bm. Sales at home rose by more than 9 per cent but in value were only about 8 per cent higher. The volume of exports was also higher but their value at £76m was slightly less. The directors said: “The Government measures designed to restrain demand at home will now further delay the achievement of the full benefit from new plants.

“In particular, severe credit restrictions, which will be intensified by the selective employment. tax, are already having a material effect on

the company’s customers and consequently on the company’s profits.” I.C.L shares, down Is 7d before the statement, lost another 6d immediately but then recovered to cut the day’s loss to lOld a share. S. A. Smith.—S. A. Smith and Company, Auckland wholesaler of chemists’ supplies, advises that an interim dividend of 3d per share will be paid on October 20; books close October 13 to 19 inclusive, ex dividend October 13.—(P.A.)

United Building. United Building Society of Christchurch will pay a steady interim dividend of 3 per cent on October 1; books will be closed from September 22 to September 30 inclusive; ex dividend September 22.—(P.A.)

Allen Industries.—Allen Industries, Auckland calendar maker, will pay an interim dividend of 5 per cent, payable September 20: books will be closed from September 20 to September 27: ex dividend September 20. Last year total dividend was 9 per cent. —(P.A.)