26 MAY 1939, Page 50


Another Scottish company in the news just at present is James Finlay and Co., which has extensive interests in India ranging over jute, cotton and tea. The 1938 accounts have now been issued and very good they are. Revenue accruing on ordinary shares, other than railway and bank shares, has risen by £31,000 to £165,285, income from other invest- ments is slightly up at £98,929, and trading profit is L34,740, against £19,474. Thus, after a heavier charge for taxation and for depreciation, the net profit rose last year from £224,971 to £228,323. In the circumstances the board has maintained the ordinary dividend at the 121 per cent. rate (Continued on page 936)


(Continued from Page 934) to which it was raised a year ago and has added Lir,000 to the carry forward, at £288,078.

This company's balance-sheet shows the sort of posi- tion one likes to associate with Glasgow management. Reserves of £2,226,508 exceed the total issued capital by £226,508, and there is a surplus of some £400,000 in the market value of investments over book values, despite the recent decline. The Stock Exchange shows its appreciation of the company's strength and earnings record—the lowest rate of dividend paid in the depths of 1931-33 slump was 9 per cent—by valuing the LI ordinary shares at 51s. 3d. At this price the yield is only 5 per cent., but I regard the shares as a good holding. For the current year income should be well maintained.