12 APRIL 1940, Page 32

AMALGAMATED ANTHRACITE PROFITS

Step by step Amalgamated Anthracite Collieries is im- proving its position. Its capital has been drastically recon- structed, its fixed charges have been substantially reduced, and now there is reasonable ground for supposing that better trading results lie immediately ahead. Those who were look- ing for a sharp rise in earnings in 1939 will be disappointed by the actual improvement shown. Trading profit rose last year from £296,529 to £307,174, and the net balance, after debenture interest, was only slightly higher, at £212,489, against £193,741. After doubling the depreciation allow- ance, at- £8o,00o, the board has paid the full 31 per cent. dividend on the reorganised preference capital and added £22,000 to the carry forward.

These results are not unsatisfactory in a period when trade must have been seriously disturbed by the outbreak of war. Moreover, while the accounts reflect the burden of rising costs, they do not include the benefit of the higher selling prices now in force. The odds are therefore in favour of a further and more substantial rise in earnings this year which should make it possible for the board to pay a higher dividend on the preference shares. At 8s. 9d. these LI shares yield over 8 per cent. on the 31 per cent. "basic" rate. They are a fair speculative purchase.