SOME GOOD STARTS.
There have, unfortunately, been so many instances where shareholders have learned, to their cost, the difference between the promises contained in prospectuses of future profits and the actual performance that it is refreshing to be able to call attention to some examples recently afforded of prospectus estimates being amply fulfilled. The first Report, for example, of D. Gestetner, Ltd., shows that since the company's shares were " introduced " into the market here last March profits have been well maintained, and for the year ending August 31st last the profit was £147,201 as compared with £143,384 for the previous year, while the average for the four years to August, 1928, as shown in the auditors' certificate, had only amounted to £111,405. The directors are paying 25 per cent. on the 10s. Ordinary shares. Another company whose results deserve notice is Initial Services (1928) Ltd. An offer for .sale was made about a year ago of 8 per cent. Cumulative Preference shares in this concern at the price of 21s. for £1 shares, and also 100,000 Ordinary shares of ls. each -were offered pro rata at par. The prospectus in this case showed that the profits for the previous twelve months had amounted to £175,000. The first Report just issued, however, now shows that the net profit for the past financial- year was £202,206. After making various important allocations to Reserve, the directors have declared a dividend at the rate of just over 42 per cent. per annum on the Ordinary shares.
Finally, it may be rioted that the profit statement of Whitworth and Mitchell, Ltd., thoroughly fulfils prospectus estimates of about a year ago. In the prospectus making an offer for sale of Ordinary shares of 11 each at the price of £2 15s., average profits were shown over a period of years amounting to £176,000. It is now shown that the net profit for the financial year ended June 30th last was £207,408, and a final dividend is recommended on the Ordinary shares making 22 per cent. for the year. * *
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