Venturers' Corner
It is good to see a company like Banister, Walton, the Manchester constructional engineers, whose prospects I out- lined in these notes some months ago, building up a really strong position. For the year ended March 3rst, 1939, profit, after depreciation, has risen from £63,726 to £67,155, and, after allowing for taxation, including N.D.C., the net profit is up from £42,859 to £46,388. This is equivalent to about 55 per cent. on the ordinary 5s. shares, but the board is very properly restricting the dividend to 25 per cent. and putting £25,000 to reserve. Consequently, reserve account is now shown in the balance-sheet at £50,000, apart from a capital reserve of £24,750, a total of £74,750 against the issued capital of only £116,500.
At I2S. 6d. the 5s. shares yield to per cent. on the 25 per cent. dividend and as much as 22 per cent. on earnings, returns which seem to me to make pretty generous allowance for the risks of a business of this kind. On the commercial side, constructional engineering may have temporarily passed its peak, but I feel that the company should be able to main- tain its earnings close to the present level with the help of special defence work. The shares are a reasonable specula-
tion for those who like a high yield. CUSTOS.
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