AMALGAMATED ROADSTONE PROSPECTS
Ever since its formation in 1935 the Amalgamated Road- stone Corporation has demonstrated a healthy earning capacity. Net profits have, in fact, risen during the four- year period from £31,164 to £45,781, and the dividend on the los. Ordinary shares has been levered up by stages from 5 per cent. to 61 per cent. At the same time, as Mr. G. F. Nalder emphasised at the annual meeting, £5,700 has been wiped out representing costs of the new preference issue, original preliminary expenses of £40,800 had been reduced to £10,000, depreciation provision had been pro- gressively increased, and at March 31st there was a net surplus of liquid assets over current liabilities of over Lioo,000. With its business closely dependent on read- building activity, the corporation is naturally following with close interest the Government's policy. In Mr. Nalder's view, it is only a question of time when "very largely increased expenditure" must be incurred on the roads of this country. Since 1910, he stated, the number of vehicles on the roads had increased by over 2,000 per cent., while the mileage of new road construction had risen by only about 2 per cent. I agree about the need for a vigorous road-building programme and expect to see it put in hand whenever the rearmament effort can be allowed to slacken. Meantime, this company's prospects, even in existing con- ditions, seem to be good. The los. Ordinaries, at 9s., yield just over 7 per cent.
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