ENGLISH ELECTRIC PROSPECTS
Stockholders in the English Electric Company will feel confident about this undertaking's war-time prospects in the light of Mr. G. H. Nelson's exhaustive survey at the annual meeting. While he emphasised the large volume of work now being undertaken for the defence departments, he re- vealed that new business for normal products had also increased since last September. In consequence the carry- over of orders into 1940, excluding orders for war material, was a record. Further, there was a nucleus of work for post- war activities. How far this large volume of work will find reflection in higher distributable profits it is hard to tell. One imagines that in war conditions the margin of profit per unit should be maintained at a satisfactory figure, so that trading results should be good. This is a company, however, which is vulnerable to Excess Profits Tax in its present form. I am prepared, therefore, to look on the 10 per cent. divi- dend as a safe minimum for the time being, but a rate which is not likely to be substantially increased. English Electric Li ordinary units stand at 32s. 6d. to yield a little over 6 per cent. They are a good industrial holding.
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