The recent announcement of the reduction of the dividend on the Deferred shares of Bovril to 3 per cent. as compared with 6 per cent. in 1932 and 10 per cent. for 1931 had prepared the market for an unfavourable report. • The directors state that the sales of Bovril exceeded those of the previous year, in spite of a reduction in oversee trade, but the profits amounted to £200,120 against £230,152. The greater part of the profits was required to cover the dividends on the 6 per cent. Cumu- lative Preference shares and the 71, per cent. Cumulative Ordi- nary shares. No transfer has been made from reserves, how- ever, in connexion with the diVidend on those shares and the (Continued on page 356.)
(Continued from page 354.) carry forward is £51,149 against £50,721. It is satisfactory, therefore, to know that the dividend on the Deferred shares has been earned, while .in the two previous years the value of stocks has been adjusted by transfers from Reserve. This time the profits have only received the quite legitimate assistance of a transfer from Income Tax Reserve, not now required. Hopes of a recovery are indicated in the price of the shares which still stand at just over par, so that the present yield is only 3 per cent.