Venturers' Corner Earnings figures issued by the Francois Cementation Company
are even better than my forecast made a few months ago. For the year ended March 31st profits, before charging interest and taxation, have amounted to £63,463, which not merely covers the 6 per cent. preference dividend required about three times over—only a payment for a broken period was actually due—but has enabled the board to declare a 15 per cent. dividend on the ordinary is. shares. This is a very good performance for a com- pany which has only just reorganised its capital and emerged from a long period of depression. Obviously there is sufficient directorial confidence in the outlook to justify shareholders in holding on.
When I mentioned this company's position some few months ago the Li 6 per cent. cumulative preferences were around 138. and the I s. ordinaries at I s. 6d. Today, despite the excellent earnings figures the quotations are virtually unchanged, the preferences yielding over 9 per cent. with their dividend very amply covered and the ordinaries a full 10 per cent. Such is the despondent view of these small out-of-the-way shares which the market is now taking Prospects are still quite bright. The preferences, at any rate, seem to me a good speculative purchase for their yield and the chance of a higher price later on. CUSTOS.
(Financial Notes on page 74)
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