COSSOR SHARE DEAL
I see no reason why shareholders in A. C. Cossor, Ltd., the radio and television-set makers, should not approve the deal in 1,000,000 of the ordinary 5s. shares now disclosed by the board. The shares in question, which have been held hitherto by Sterling Industries, are going into strong hands, but not into the possession of any competing group. All that has happened is that Mr. T. A. Macauley, managing director of the Scottish Securities Corporation, who is also on the Cossor Board, has suceeded in placing these t,000,o:o shares in four blocks. One is being taken by the Prudential Assurance Company, which figures nowadays in so many investment deals, the others are being bought by wealthy individuals who are impressed by the speculative possibili- ties. Details of the financial arrangements have not been revealed, but I believe the purchase-price is close to the current market quotation of 3s. 6d.
At that level the 55. shares do not look dear even in rela- tion to the results of the company's latest financial year ended March 31st. Net profit of £55,889 covered the preference dividend 21- times and left a balance of just over 8 per cent. on the ordinaries, out of which a dividend of 6 per cent. was paid. Recently, it seems, the company's posi- tion has improved quite materially, since the board report that turnover for the first three months of the current finan- cial year has established a record. It would not be surprising, therefore, if the dividend rate is increased in respect of the year ending March 31st, 1940. Moreover, we shall hear soon of important changes on the board, which should bring fresh strength to the administration of the business. As a specu- lative lock-up Cossor 5s. ordinaries have scope for improve- ment at 3s. 6d. The 6 per cent. ir cumulative preferences are also a reasonable speculative holding at 14s. to yield 81 per cent.
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