In these days capital bonuses are rare. Many companies whose
earnings are expanding are only too conscious of the certainty of a setback after the war and others whose earnings position fully justifies a capitalisation of reserves prefer to await the peace. It is all the more encouraging, in such circumstances, to find a cautious board like that of British Oxygen announcing a scrip bonus of 20 per cent., although stockholders are warned that they must be prepared for a lower rate of cash dividend on the larger capital. For 1939 consolidated net profit of the group rose from £581,064 to £627,680 and the dividend is comfortably maintained at 17 per cent. Like British Aluminium, this company was going ahead steadily in pre-war days. It is now making a sub- stantial contribution to the national effort which calls for further capital extensions. British Oxygen Li ordinary units, at 73s. 9d., yield about 41 per cent. They are a sound industrial holding.