CABLE AND WIRELESS DIVIDEND
Having written hopefully of the prospects of Cable and Wireless (Holdings) I will not pretend to be surprised that the 4 per cent. dividend is maintained. Once or twice in recent months I have had my doubts, especially in the light of political developments which must dictate caution to any board of directors, but here it is—the full 4 per cent. and the Ordinary stock has actually risen a few points to 43. What might the price not have been in " good markets "? At least 20 points higher. . . . As things are, stockholders will have to content themselves with the knowledge that the company's revenue has not suffered appreciably despite the introduction of the Empire flat rate scheme.
Until the full accounts appear, it is impossible to tell whether Cable and Wireless (Holdings) has had to draw on its carry-forward to pay the 4 per cent. dividend, but it is reassuring to be told that the operating company has paid 3+ per cent., against 31 per cent. for 1937, without dipping into the £300,000 specially set aside in 1937 in anticipation of the reduction in charges. This is a surprisingly good achievement in face of the falling off of roughly 12+ per cent. in the published monthly traffics, which suggested a decline of over £600,000 in gross revenue. Allowing for the saving on the Beam Rental from March 1st, 1938, the indicated reduction in the operating company's net profit is about £400,000, leaving the actual figure at about L860,000. As the amount now declared in dividend payable to the holding company is £975,000, it seems that other factors, such as operating economies and certain additional concessions from the Government, have been at work.
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