7 MAY 1927, Page 32


The first report of Morris Motors (1926) Limited is an excel- lent one. It will be remembered that the company acquired the assets of the former company from Mr. W. R. Morris, who holds the Ordinary Share capital of the new concern. Notwith- standing the difficulties arising out of the coal strike, the company obtained a profit of no less than £1,001,000 for the year, including interest and dividends on investments, and this, after providing for depreciation of assets. The company appears to be pursuing a conservative policy as regards distri- bution of profits. After paying the interest to vendors up to the date when the new company acquired the business, the remaining balance is retained to strengthen the company's resources. Preliminary expenses of £151,000 are written off and a reserve fund to the amount of £375,000 is created. The balance sheet also shows a liquid position, with a bank balance of 2164,000, and over £800,000 in Government securities. Such a report really brings the preference shares of £1 each, which are quoted at a little over 19s., into the category of promising investments.