FINANCIAL NOTES

OXYGEN PROFITS.

SENSATIONAL profits such as those disclosed in the Report of the British Oxygen Company go far to explain the speculative interest which still exists in some of the Ordinary shares of Home Industrial companies. The net profit balance for last year was £600,279 compared with £449,828 for the previous year. It must be remembered that the final dividend last year was paid on an increased capital, and the rate of distribution has been maintained despite the further increase. The company has recently announced a capital 'bonus of one share for every £15 of stock held in addition to the final dividend of 8 per cent. on the Ordinary stock. It appears that the whole of the capital of the Ferro-Arc Welding Company has now been acquired, in addition to the capital of the Quasi-Arc Company, though the profits of those concerns are not brought into the past year's accounts. Interests in- subsidiaries have- been • increased to just over £a,000,00o, and it is now proposed to :increase the authorised capital of the company to £3,5oo,000, an increase which will provide a margin of unissued shares available for future disposal if required. Substantial sums are placed to the 'General Reserve and to certain additional reserves, nd it is noteworthy that £5o,000 has been placed to Special Taxation Reserve, possibly in view of N.D.C. payments.

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• PRESSED STEEL.

The first accounts of. the J'ressed Steel Company, which were made public last week, are of a most encouraging character. The trading profit for the year was £350,343, with a net prOfit of £245,963, this figure being reached after charging deprecia- tion and Debenture interest, income tax, and adding £25,000 to General Reserve. The Ordinary Stock receives a final divi- dend of 121 per cent., free of tax, coming after an interim divi- dend of ro per cent. free of tax. The interim dividend was distributed prior to a bonus issue of one new share in five, so that the final dividend is equivalent to 15 per cent. on the shares (Continued on Pgge 976.) •

FINANCIAL NOTES

(Continued from page 974.) originally offered for sale at 22S. 6d. per 5s. share, and the total dividend 25 per cent., free of tax. A balance of £91,837 is carried forward. The balance-sheet is a strong one, with cash standing at £288,226.

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MATCH PROFITS.

The latest Report of the British Match Corporation, the concern which owns all the Ordinary shares of Bryant and May Limited, together with other match interests, is an excellent one. The Report always comes out with commendable promp- titude. For the year ending April 30th last the net revenue amounted to £474,129, compared with £463,942 for the pre- vious year. The company is most prudently and conservatively managed and, in pursuance of the policy of greatly reducing the item of Goodwill, a further £60,000 has been written off, so that the amount of Goodwill has now been written down from

L800,000 to £380,000. The dividend on the Ordinary shares of 71 per cent. is the same as for the previous year ; it is paid less tax, and leaves £57,109 to be carried forward as compared with £50,175 brought in. A special bonus of £250,000 received from Bryant and May Limited from that company's General Reserve has been placed to the Corporation's Reserve, which is increased to £700,000.

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ROLLS-ROYCE.

The expansion both in business activity and in profits of Rolls-Royce Ltd. continues. For the past year the amount of profit available for distribution was £390,237 against £349,802 in the previous year. An interim dividend of 71 per cent. was paid last November and a final dividend is now declared of 15 per cent. on the issued capital, with large allocations to special funds. A year ago an interim dividend of 5 per cent. was paid and a final dividend of 15 per cent., with a cash bonus of 21 per cent. In noting this comparison, however, it must be pointed out that last January the capital was increased to £1,15o,00o and there were allotted by way of bonus to the company's members 195,923 Ordinary shares and 16,343 Workers' shares, fully paid. The present balance- sheet is a strong one as regards the cash holding, while British Government Securities amount to over Lx,000,000.

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BURMAH OIL RESULTS.

The market for Oil shares, which in common with other speculative departments has been dull during the greater part of the past week, received some stimulus from the announcement by the Burmah Oil Company of a final dividend of 171 per cent. and a bonus of 5 per cent., making 271 per cent. for the year against 20 per cent. for the pre- vious year. The shares rose on the announcement, which was accompanied by a profit statement showing profits of just under £3,000,000 as compared with £2,276,000 in the previous year. In addition to the dividend distribution, the Directors are placing £5oo,000 to the General Reserve, an allocation which follows one of £200,000 a year ago.

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THE SUN INSURANCE.

The Sun Insurance Company, which carries on various classes of Indemnity business as distinct from its sister com- pany, the Sun Life, has had a good year, for although the Fire profit was less, ;he Accident profit increased from £24,784 to k11:1,190 and consequently the total profits were up about £10,000. The General Reserve of the company now stands at £i,000,000 and the " additional " Reserves in Fire and Accident Departments at £1,600,000 and £600,00o respectively.

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CALEDONIAN INSURANCE.

In the insurance world the past year has been notable for increased business achieved by most of the companies, and at the recent Annual Meeting of the Caledonian Insurance Company the Chairman, Major-General Sir Walter Maxwell Scott, was able to tell the shareholders that the net sums assured during the past year amounted to £2,039,320, thus surpassing the previous year's record total of £1,685,886. The net rate of interest earned on the fund increased from £3 195.3d. per cent. to £4 os. 4d. per cent. The Chairman stated that the same rates of bonus as for the past triennium would be paid as interim bonus on policies becoming claims in 1937, and the rates on policies becoming claims in 1938 and 1939 would be determined at the beginning of those years, accord- ing to the conditions prevailing at the time. The Chairman was also able to report good results for the Fire, Accident and Marine departments. A. W. K.