PREFERENCE SHARES WITH ARREARS Continuing the survey I began last
week of preference shares in recovering companies where there are still arrears of dividend to be paid off, I suggest the three following issues as worthy of inclusion in our list :
0.•
Goode, Durrant .& Murray. 7 per cent. Cumulative Li Preference E. W. Tarry 6 per cent. Cum. LI Prefs. .. .. .. .. Braithwaite (Engineers) 71 per
cent. Cum. Li Prefs. .. ..
All these companies have passed through a lean period and have now been able to resume payment of preference dividends. Goode, Durrant and Murray, engaged in merchanting and
warehousing in Australia, is now earning at a rate sufficient to pay off all its preference arrears within the next two years. Allowing for these arrears, the shares are priced to yield 61 per cent. E. W. Tarry carries on a business of manufac- turers of mining and- agricultural machinery and hardware and timber merchants in South Africa and is now covering its preference dividend four times over. The relatively small arrears should be eliminated within .the next twelve months. Braithwaite and Co. (Engineers) is a constructional and bridge- building undertaking with important connexions in India. Losses were incurred during the slump years, but the preference dividend was fully earned in the year ended March 31st, 1936. Since that date several foreign contracts have been secured and there is now a definite prospect that earnings will be sufficient to enable the company to keep pace with current preference dividend requirements and reduce the outstanding arrears by gradual stages.
* * * *
Current Price.
2.5s. 9d. 23S. 6d. 22S. 9d.
Net Amount or Arrears per Share.
4s.
is. 6d.
4s. 3d.
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