Venturers' Corner Within the next few weeks the accounts will
be published of Allen West and Co., the switch-gear and electric-control gear manufacturers. For the year ended January 31st, 1938, this company's net profit rose sharply from £38,059 to £63,736, and a dividend of 71 per cent. was paid out of earnings of 15 per cent. on the 5s. shares. At the date of the balance-sheet stock and work in progress was up from £154,587 to £191,197, and in reviewing the position at the annual meeting last April the chairman intimated that the volume of work in hand was a record, and that there had not been any falling-off in the flow of new work. That, I think, was a very satisfactory jumping-off point for the past financial year, and certainly suggests that the profits due to be announced shortly will show a further improvement. Having reorganised its capital only as recently as July, 1936, this company may be expected to follow a conserva- tive dividend policy, but I see no reason why a payment of o per cent. should not prove to be compatible with the allo- cation of a useful sum to reserve. Moreover, the outlook for this type of business is distinctly promising. At 6s. 6d. Allen West 5s. shares offer a return of nearly 6 per cent. on the last dividend of 71 per cent., and give an indicated yield of nearly 8 per cent. on the assumption that the divi- dend will be raised to io per cent. On this assumption, which I expect to be fully justified, the shares should have - scope for a moderate rise over the next few weeks.
CUSTOS.
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