FINANCE AND IN
By CUSTOS
AFTER their attack of " peace jitters " the stock markets have no recovered some of their poise. Long-term hopes based on chea money and a higher national income have provided a deterrent any widespread selling and an inducement to some few people buy. Prices have therefore steadied, while the volume of turns remains small. I am not convinced that one should infer fro this that markets are about to resume their rise. While I do n look for any substantial fall from today's levels, a fresh reaction, o a modest scale, would not be surprising as final victory approache A wait-and-see policy is still fully justified.
AUSTIN MOTOR INCIDENT - After the British Celanese affair the Stock Exchange authoriti have very wisely taken the opportunity to tighten up their requ ments from companies seeking for permission to deal. As mi have been expected, such companies, which include undertaki with capital already quoted but seeking dealing facilities in add tional securities, are to be required to give an undertaking to suppi ment final dividend announcements with profit comparisons, a any other information necessary to prevent the establishment a false market in the shares. It seems a pity, against this ba ground, that the Austin Motor Company should have doubled i ordinary distribution this week without toeing the new line fix in Throgmorton Street. In consequence, jobbers in the shar suspended dealings until the dividend announcement was amplifi by a statement of the earnings position. From this it was ma plain that the company had become subject to Excess Profits Ta and that, after covering the Preference dividend and contingencie there was a sum of D5o,000 available for the year to July 31, 19 against £65,000 net absorbed by the 20 per cent. dividend a bonus.
In fairness to the Austin Company one must point out th the directors had already intimated last December that owing stocktaking difficulties there would be some delay in the iss of the full accounts, the board's intention being to publish fu figures for the two years ending July 31, 1945, together. It nevertheless the fact that the directors could have amplified dividend announcement if they had seen fit, and nobody an quarrel with the decision of the jobbers to suspend dealings. ordinary capital of Austin Motor is highly geared which sugges that once the transition problems have been surmounted post-w dividend prospects should be good. Quoted around 32s. 6d. 5s. Ordinary units offer a return of only just over 3 per cent. The are adequately valued for the present.
'IMPERIAL TOBACCO PROFITS
Even the Imperial Tobacco Company, which must be rank among our soundest industrial concerns, does not yet see fit issue a clear comparison of profits with its dividend announcemen Once again the preliminary statement shows the reserve appropri tion and the carry-forward, leaving shareholders to make the own calculations of earnings. Admittedly, the arithmetic of matter is not very difficult, but neither the necessary data the technique is at the disposal of most investors. Perhaps simplest method of explaining the latest figures is that since t dividend and reserve appropriation are unchanged, and the car forward which was raised in the preceding year by £168,000, increased by only Lit8,000, profits have fallen by £5o,000. Ev so, however, there is no mention of any transfer to widows' an orphans' benefit account, which a year ago was allotted £m, before striking the profit figure.
As expected, the final dividend for the year to October 31, 19 is maintained at -71- per cent., free of tax, and is accompanied by 24 per cent, tax free bonus, bringing up the total distribution 174 per cent., tax free, as in each of the three preceding y The transfer to general reserve is £500,000 and the carry4orwar is up by £r18,000 to £1,988,000. While it will be interesting hear Lord Dulverton's remarks on the leaf position, I regard immediate and the long-term outlook for earnings as well assur Around £8, "Imps " ordinary units, yielding af per cc less tax, are a good investment.
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