P. AND 0. RECEIPTS UP In spite of difficult conditions
the Peninsular and Oriental Steam Navigation Company has somehow managed to achieve an increase in its receipts for the year ended Septem- ber 30th. Voyage receipts, which are computed for the year to June 3oth, and do not therefore reflect any period of war, rose from £1,326,264 to £1,381,281, and total receipts were up from £2,405,278 to £2,592,290, thanks to an in- come-tax credit of £192,902, as investment revenue had declined quite sharply. As usual, depreciation of ships calls for £88o,000, and what with special debits of £216,090 for loss on sale of securities and of I, oo,000 for special repairs and reconditioning, the net profit has fallen from £547,904 to £446,182. The deferred dividend is cut from 8 per cent. to 6 per cent., and this entails a draft of some £5,600 on the carry forward, at £164,797.
The board's decision not to submit a consolidated balance- sheet owing to the exceptional difficulty of the times is readily understandable, but it is apparent from the balance- sheet of the parent company that there has been a consider- able realisation of gilt-edged stocks. The company's gilt- edged portfolio is roughly £5,270,000 lower, although it still stands at the impressive figure of £6,328,182. A large total of liquid assets is necessary to set against the heavy inter- group and external liabilities. Until the chairman has thrown some light on the war-time prospects I should not like to express any strong views on P. and 0. deferred £r units. At 22S. 6d. the yield is just under 6 per cent. on the last dividend. My feeling is that for the present this is a fair valuation.
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