IMPERIAL SMELTING OUTLOOK
Since the publication of the accounts of Imperial Smelt- ing Corporation the Ordinary shares have participated in the general market improvement. This is hardly a reflec- tion of the company's past achievements, though the report for the year ended June 3oth- was not discouraging. It rather reflects the feeling that important things have hap- pened to zinc which had little time to affect the past year's results. The directors' report enumerates three of these factors—an improvement in market prices in the latter part of the year, the partial completion of the reconstruction of the zinc smelting plant and the rearrangement of the import duties, which gives the company a higher degree of protection.
All these things happened within the last financial year, though that period did not get the full benefit. As to the effects of war, the market had to await Viscount Home's speech. It seemed, in advance of his comments, to be clear that the fixed price structure had retained for the company the benefit of the slightly better prices, and relieved it of those of its problems which arise from foreign competition, even if it has also saddled the company with extra expenditure.
The year ended June 3oth was, as expected, slightly less favourable than its predecessor. The net surplus of the parent company was £100,930, a reduction of £2,397, and for the whole group the net surplus after taxation was £12,251 lower at £107,236. The company is still not able to pay the full dividend on the 61 per cent. preference shares, but has brought the payment for the year up to 6 per cent., against 41 per cent., leaving 21 per cent. in arrear. To do so it has drawn upon the balance of undivided profits, which is £23,259 lower at L57,547. One may assume that the directors would not have drawn upon undivided profits if they had not taken a favourable view of the future.
(Continued on page 568)
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