The Bioscope (Oct-Dec 1931)

December 16, 1931 THE BIOSCOPE 41 Financial News and Views Theatres Which lEnjoy Booking Advantages Steady Profits Which Should Interest Investors American Stocks Around Low Levels (BIOSCOPE CITY EDITOR) LONDON STOCK MARKETS continue to show a very undecided tendency. Rapid fluctuations in exchange are followed by movements in gilt-edged securities which are so wide as to indicate a certain amount of speculation in a class of security which we have been accustomed to look upon as the investor’s ground. It seems to be the wise course for the investor for income to ignore these fluctuations and to pay attention to the published statements of the Chancellor of the Exchequer in which he asserts that the finances of the country are on a comparatively sound basis. Meanwhile, industrial shares are neglected and any movements are mainly the result of year end liquidation and adjustment of the market position. Consequently, our list of prices has no particular feature of interest. Associated P.P.H. Good Investment The following particulars of ASSOCIATED PROVINCIAL PICTURE HOUSES, LIMITED, appear to be worth study. It would be too much to expect that the company could escape the results of the last year’s depression, but even with some reduction in dividend, the shares seem to be reasonably cheap. Associated Provincial Picture Houses, Ltd., founded in 1914, is controlled and managed by Provincial Cinematograph Theatres, Ltd., and owns 18 theatres and cafes in London, Aberdeen, Southsea, Dudley, Sutton, Halifax, Walsall, Leigh, Wednesbury, New Brighton, Willenhall, Wolverhampton and Portsmouth. Its issued capital comprises £100,000 in 7 % Cumulative Preference of Is., and £700,000 in Ordinary £1 shares. The financial year ends on May 31st, and figures show that steady progress has been made by the company since 1923. In that year the profit was £38,201, and in 193! it had risen to £114,435. Only one year — the “ talkie ” boom period of 1929-30 — -was higher, when the total reached £120,937. Dividends for the past seven years have been maintained at 10%, and the Depreciation Reserve now totals £167,137. The carry forward from last year of £56,381 is equal to over 8% on the issued Ordinary share capital. All the company’s properties are freehold, with the exception of three, which are held on long leases. A large freehold site has been acquired by the company at Wood Green, I.ondon, N., and a modern theatre with a large seating capacity will be erected there as soon as plans have been approved. It is important to realise that this company exhibits films only, and does not incur the risks involved in the production and renting branches of the industry. Gaumont Theatre Advantages The fact that the company’s theatres are managed by Provincial Cinematograph Theatres, Ltd. (with the Gaumont-British Picture Corporation, with which it is associated, it is the largest exhibiting company in the world outside the United States of America), places it in a very strong position to book films on the most advantageous terms, which is undoubtedly the secret of success in this industry. On the basis of a dividend of 10% the Ordinary shares at the price of 16s. 6d. yield approximately 12% . Weak American Markets Following the proposals of President Hoover and Mr. Mellon for heavily increased taxation, the American markets have been subjected to heavy and continuous liquidation. This has been aggravated by the failure of the commodity markets to respond to the slightly better tendency observable a month or two ago. As a matter of interest we are including this week a table showing highest and lowest prices of the leading entertainment stocks. It will be noticed that EASTMAN KODAK and LOEWS INCORPORATED (M.-G.-M.) are now around their low levels for the year. The former is at present on an $8 dividend basis and returns almost 10%, and the latter on a $3 basis yields 11%. As mentioned in a previous issue, Loews are not burdened by heavy over-capitalisation, and the financial position appears to be satisfactory. The company itself operates 180 theatres in the United States and foreign countries, and the administration has been soundly directed. Profits of the producing subsidiary have shown considerable expansion in the past three years, and the net income of the latter in the 1930 fiscal year represents about two-thirds of the consolidated profits as reported by the company. SHARE PRICES LONDON PRICES Value (par) Close Tues. Dec. 8 Close Tues. Dec. 15 A. P.P.H. Ordinary £1 16/6 16/3 Associated Talking Ordinary 5 / 1/ 1/ A.B.C. Cinemas Ordinary 5 / 4/9 4/9 71% Preference ... British Int. Pictures £1 14/9 14/44 Ordinary 5/ 4/101 4/74 8% Preference £1 17/6 17/6' British Instr. Pic. Ordinary 10/ 1/9 1/6 British Lion Deferred 1/ -Hi -in Preference 10/ 3/9 3/9 British & Dominions Deferred 1 / /6 -in Ordinary . . . £1 5/9 5/9 Baird Television Pref. Ordinary 3/3 3/44 Deferred Ordinary Denman Pict. Houses 5/ 2/6 2/74 7 % Debentures . . . £100 7% 94 93 Convt. Debentures... Gaumont 874 87 Ordinary 10/ 10/6 10/3 7f% Preference ... £1 16/3 15/9 Gainsborough Ordinary £1 7/6 6/104 Deferred 1/ -/ 6 -/ 6 General Theatres Preference £1 8/6 8/0 6}% Debentures ... £100 734 741 London Pavilion Ordinary ... £5 £3 £3 Moss Empires Ordinary ... £1 is m 18/14 Pref. 5% £1 14/44 14/44 P.C.T. 14/6 Prefd. Ordinary ... £1 14/ Cons. Pref. 7% ... £1 17/0 18/14 Stoll Theatres 4/6 Ordinary £1 4/6 TUSSAUDS 24 Hi Preference £1 25 / Deferred 1 / 3/3 2 /9xd United P.T. £1 2/ 21 7% Debentures ... £100 76 75 Union Cinemas 10% Preference ... 51 1/3 1/6 Exhibitor’s Stratford Palladium Failure A sitting of the London Bankruptcy Court was held on December 11th before Mr. Registrar Mellor for the public examination of Leopold Linder, cinema exhibitor. The debtor failed in September, with total liabilities £4,363 (ranking £3,911) and assets “nil.” Replying to the Official Receiver, debtor stated that in September, 1930. after running publicity business, he took over the unexpired term of about 30 years of the underlease of the Stratford Palladium, Ward Road, Stratford. The rent, including the use of the plant, was £1,000 per annum. He received the benefit of £500 rent paid in advance by the previous tenants. After about nine months he closed the premises, at a loss of about £700, the takings having been insufficient to meet overhead expenses. The debtor attributed bis insolvency to depression in trade, to loss over the Stratford Palladium, and to a further loss of £1,000 over the publication of a weekly newspaper. The examination was concluded. CARTOON FILMS FAILURE The statutory first meetings of the creditors of Ronald Percy Maule, film producer and agent, of Porchester Gardens, Bayswater, W., were held on Tuesday at London Bankruptcy Buildings before Mr. E. Parke, Official Receiver. The debtor states that a previous failure was recorded against him in 1923. In 1929 he and another person took a studio to produce “ talkies,” but the other person would not acknowledge him as a partner, and he (debtor) launched an unsuccessful action for damages for breach of agreement. In February, 1931, he and his wife formed Maule Productions, Ltd., to produce cartoon films. They produced “ Bobby the Bear ” at a cost of £700 ; it was shown to the renters but was not accepted, as they could not comply with the Quota regulations. No business has been done by the company since July, 1931. Statement of affairs showed liabilities of £3,673, and assets likely to produce £700. A resolution was passed for Mr. F. O. Salaman, C.A., 1 and 2, Bucklersbury, E.C., to act as trustee and wind up the estate in bankruptcy. FOR FILMS SUPPLIED IN 1927 At the Cardiff County Court last week, before Judge L. C. Thomas, the Paragon Film Co., Ltd., Edwards Terrace, Cardiff, claimed £18 9s. Id. for films supplied to the Carcopol Cinema Co. It was stated that the films in question were supplied to the respondent company in 1927. For the respondents it was contended that some of the films were in such a bad state that they could not be shown and that others of the films mentioned were not received. His Honour held that the claim was well founded, and judgment was given for plaintiffs. FINCHLEY CINEMA FAILURE RECALLED Application was made on Monday to Mr. Registrar Warmington, at the London Bankruptcy Court, for an order of discharge on behalf of Frank Beard and Horace Joseph Johnson, trading as Beard & Johnson, and lately carrying on the" New Frognal Cinema, Finchley Road, N. Walter Bovle, Senior Official Receiver, reported that the debtors failed last July with ranking liabilities of £1,951, and no assets whatever. In July, 1927, they paid £1,250 for an unexpired term of 194 years of the lease of the New Frognal Cinema. Trading was successful until September, 1929, when the London County Council suspended the licence for lack of proper safety exits and cancelled it in January, 1931. Costs amounted to £400. The discharge was suspended for six months. NEW YORK PRICES Close Tues. Dec. 8 11 a.m. N.Y. Tues. Dec. 15 1931 High 1931 Low Eastman Kodak . ... no par value 944 8 If 185 81} 2J 4* 26 Fox Films “A” 4 21* 38t Gen. Theatre Equipment Loews Inc 11* 34} 4* 261 15£ 63 £ PARAMOUNT PUBLIX Radio Corporation Radio-Keith-Orpheum 9f 6} If 6 s 54 1 501 274 244 20f 6J 5 1 2£ Warner Bros 34 23 'Nominal Price.