RICHARD THOMAS'S PI' 0 3PECTS
If any shareholders of Richard Thomas and Co. WC7- hoping that Sir William Firth's speech would give them a definite hint of the early resumption of preference di' dends, they were disappointed. Sir William's speech was : Continued on page 390
FINANCE AND INVESTMENT
Continued from page 388 candid and informative as usual, but he put a strict curb on prophecy. Thus, shareholders are left to draw their own conclusions from the two main theses of Sir William's speech—that earnings for the past financial year were re- duced by exceptional causes, and that he is well pleased with the working of the new plant at Ebbw Vale. As to the current rate of earnings, he showed that although profit margins on the old-type tin-plate mills had been reduced in recent months by the higher price of tin, Richard Thomas's net profits for the current year would substantially exceed the £367,429 earmarked for reserve after bringing the de- preciation allowance up to L650,000.
He warned shareholders that the auditors had been in- structed to review the value of the assets, and that they might report that an annual depredation charge of more than £650,000 was needed, but he does not anticipate too serious an increase. Sir William has every confidence in the efficiency of the new Ebbw Vale plant, and indicated that in the not distant future much of the old-type plant would have to be replaced. The impression I get from this review is that holders of Richard Thomas debentures, preferences and ordinary shares are fully justified in seeing things through.
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