COMPANY NOTES
By CUSTOS
THE Stock Exchange seems to be confident that it will have a 'soft' Budget, for prices have been rising quietly but steadily, although the turnover of business remains small. Some of the optimists are bound to be disappointed, for it is hardly possible for the taxes on beer, tobacco and petrol to be reduced simultaneously at a time when the Chancellor is seeking to restrain home con- sumption. There is, however, a general expectation in the City that Mr. Butler will do something to help Lancashire. The recent trade delegation would hardly have been received by the retiring Prime Minister as well as by the Chancellor if the politicians had not meant some business to result. To give an indication of the pre-Budget market.
Guinness (10/-) 47/3 Assoc. Cement 98/9 Imperial Chem. 43/- Marks & Spen- cer (A) (5/-) 68/3 Assoc. Elec. .. 71/9 Dunlop (10/-) 30/9 Tube Invest... 76/3 Unilever .. 81/3 British Oxygen 64/9 British Motor 5 11/
I la(w/-ke) r -Sid'ley 53/96} Bowater .. 82/- Ilford (50 .. 14/101 BETA (5/-) .. 22/-
Ass. News (5/-) 16/2} Beaverbrook (A) (5/-) .. 16/- Furness Withy 48/I} United Steel .. /7} Dorman Long 28/- Brit. American Tob. (10/.).. 54/41 Lane. Cotton.. 29/9 Distillers .. 26/6 Turner & Newall.. 106/9 Wall Paper Def. 75/3 GUS (A) (5/-) 46/9 GEC .. 56/9
John Thomson
(5 /-) 21/1} Metal Box .. 82/6 Ranks (5/-) .. 19/9 Butterley (2/6) 33/1} Ford .. .. 80/6 Rolls-Royce .. 81/6 A. E. Reed .. 73/10} Pyrene (5/) .. 21/6 Ericsson Tele- phone (5/-) .. 37/6 Kemsley .. 29/6 Daily Mirror
(/O. .. 18/7}
P. & O. Def. .. 70/- Colvilles .. 28/10 Whitehead .. 59/6 Imp. Tobacco 63/- Paton & Bald- wins .. 28/9 Brit Petroleum 75/7+ Canadian Eagle
about £20 million, but this would not help the section of the trade affected by the rising imports of Indian grey cloth, whose prices are well below the purchase tax level. It is, of course, possible that the Chancellor will promise to put a ceiling on the imports of grey cloth, but that will increase rather than lessen Indian competition in our overseas markets. However an abolition of purchase tax will help the quality cotton trade and that will improve its export efficiency. If I were to pick out a good quality textile share as a Budget speculation, I would choose DAVID WHITEHEAD AND SONS (HOLDINGS). This company is said to be the only firm in the country which does all the manufactur- ing and processing operations involved in the production of coloured cotton fabrics, both for furnishing and dresses. It has also a first-class mcrchanting organisation. For the year ended December its net profits were nearly doubled—£199,567 against £105,841—and its final dividend of 15 per cent. brought the total to 20 per cent. on the doubled capital (against the equivalent 15 per cent.). At Is, 6d, ex dividend the Is. shares return over 13 per cent. • • •
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