ROLLS-ROYCE.
The annual report of Rolls-Royce Limited is usually a very brief and business-like document with few remarks from the directors concerning the general working conditions of the year; other comments are reserved for the chairman's speech at the annual meeting. The statement of profits, however, is an excellent one, the total profit for the past year being £216,726, as against £150,979 in the previous year. This profit is reached after charging suitable depreciation. The dividend has been raised to 15 per cent. plus a bonus of 2 per cent. which compares with only 10 per cent. in the previous year. Moreover, Income Tax provision requires £30,000 instead of £15,000, so that the distribution is an excellent one. The balance-sheet is a good one, testifying to the manner in which conservative finance has been responsible for the present satisfactory position. Cash and Government Securi- ties now amount to over £1,000,000 after deducting a reserve for possible depreciation. Having regard to the smallness of the capital and the sound position of the company, the present price of the shares does not appear to be unduly high.
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