FINANCE AND INVESTMENT
By CUSTOS
WITH the noteworthy exception of the Midland, all the banks have reported higher profits ha 1943 than for 1942. That is what one
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had expected in view of the further substantial increase which took place last year in deposit resources, the favourable 'experience in the matter of bad debts and the development of a general situation which would justify bank directorates in applying " policy factors," such as deductions for contingencies, &c., rather less stringently than a year ago. Why, in these circumstances, the Midland's pub- lished profit figure should show a fall is not easy to explain, although it is in line with this bank's traditionally individualistic policy. Taking the Big " Five " as .a group, the 1943 profit total, after coverng taxation, rose by £427,160 to £7,687,721 or by just under 6 per cent. Dividends have been maintained in every case, and -the customary transfers have been made to bank premises and pension funds. Altogether, the position is a strong one, fully justify- ing a confident view of bank shares as investments.
COPPER DIVIDEND SHOCK
I do not pretend to know the facts which lie behind the dividend decisions of the Chester Beatty group-of RhOdesian copper com- panies, but it does seem unfortunate that the shareholders should be subjected to so many unexpectedly violent changes. After paying per cent. for 1939-40, Mufulira Copper Mines did not pay anything for 1940-41, only to resume with III per cent. for 1941-42. Now they are again withholding any distribution for the year to June 30th, 5943, although the net profit, after providing for replace- ments and taxation, has risen from £461,203 to k532,o40 Admittedly, there has been a fairly substantial fall in operating profits since the taxation charge is down from £1,350,000 to £974,000 ; but this in itself does not afford much guidance to the "uncertain conditions" which, it seems, have prompted the board's decision to conserve liquid resources. For Rhodesian Selection Trust the Mufulira decision is a heavy blow, which must involve the passing of the R.S.T. dividend. It is also a broadside for Rhokana Corporation and Rhodesian Anglo-American. I still feel, however, that if I held shares in this group I would just grit my teeth and hold one.
SHARES FOR RECOVERY
Markets are running true to form in refusing to develop any great activity on the eve of great events. In behaving in this way r. they are doing no less than can be expected, especially when priceg have been rising for over two years. Investors seeking capiul appreciation and prepared to shoulder the corresponding risks are til having to go farther and farther afield to find promising purchases, and must now be willing to forego a ready market in most cases where recovery possibilities still remain. Among the shares which it may still be worth while locking away are Edward Lloyd Investment 5 per -n cent. £i cumulative preferences (in arrears since 5939) around 14s, Selfridge (Holdings) io per cent. cumulative Li preferred ordinary (in arrears since 1938) at 16s., and Davis Estates 6 per cent. cumuli tive Li preferences at 16s. 6d. (arrears since 1939). In all these
cases there are lock-up speculative prospects. - The fact that goods made of raw materials to short supply owing to was conditions are advertisgd in this tournal should not be taken as an indication that they are necessarily available for export.
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