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LANCASHIRE COTTON RESULTS
I will not pretend to be happy about the results of the Lancashire Cotton Corporation—the outlook was very much brighter when I wrote hopefully of the shares a year ago— but I am genuinely relieved that the figures are not worse. Bearing in mind the acute depression which has prevailed in the cotton trade for the past twelve months, nobody could regard the Corporation's trading profit of £304,425 as anything but a creditable achievement. It is true that £201,232 of this amount was made in the first six months, ending on March 31st last, which means that only £103,190 was made in the second half of the year, but even the latter figure looks good in relation to short-time working, cutting of prices and a fall in stock values.
As I expected, the board has maintained its allowance for depreciation at £155,000, the full 5 per cent. is to be paid on the non-cumulative preference stock, and there is the substantial balance of £24o,328 to go forward. Once again the ordinary stockholders are to go without any payment, but they have the consolation that no arrears of dividend are being—or can be—piled up in front of them. At 15s., returning nearly 7 per cent., the preferences are a good high-yielding speculation. Ordinary stockholders will have to be prepared to exercise patience but should not sell at the current price of 7s. gd. This is a stock to watch. It would' be well worth picking up as a lock-up speculation on any sign of a recovery in international trade.
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