FINANCIAL NOTES

MARKETS AND THE BUDGET.

Tire Stock Markets during the earlier days of this week have been affected both by the Budget and by some apprehensions with regard to the outcome of the fortnightly settlement owing to the fall which has taken place in Mining shares and in commodities. The result of the settlement has still to be seen, but at the moment of writing the first effect of the Budget has been a moderate improvement in gilt-edged securities and a general fall in industrial shares on the new profits tax, to which fuller reference is made in my article elsewhere.

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CUNARD'S RECOVERY.

The Cunard Steam Ship Company is now, of course, a holding concern, its main interest consisting in its subsidiary, the White Star Line, which is the operating company for the ships on the North Atlantic services. Thus, while the accounts of the parent company for the past year show little change from those of the previous year, the Report of the White Star Line is most encouraging. Thanks mainly to the great improvement in industrial conditions and general prosperity in the United States, and thanks also to the attractions of the new Cunard liner, the ' Queen Mary,' a loss on working of k40o,000 in 1934, and of a little over £61,000 in 1935, has now given place to an operating profit of £588,000. The directors, therefore, are able, after deducting the total loss brought forward from 1935, to carry forward to the credit of Profit and Loss k76,800. It has to be noted, however, that no allowance has been made for depredation of steam ships and motor ships, and it is clear that the company has a long way to go before dividends can be paid upon its Ordinary capital of £to,000,000, of which 6o per cent. is owned by the Cunard Steam Ship Company. Never- theless, the recovery is remarkable and encouraging, and comes as a reward to the directors who had the faith in the time of extreme depression in the United States to provide new and up-to-date steamers against the return of prosperity in the United States and elsewhere.

(Continued on page 782.)

FINANCIAL NOTES

(Continued from page 783.) I.C.I. PROGRESS. - The latest report of that stupendous undertaking, the Imperial Chemical Industries, shows further progress during the past year both in general activities and in profit-earning power. The gross profit for the year is no less than £9,049,422, representing an increase over the previous year of nearly £700,000. Of this increase £200,000 was absorbed by income tax and L500,000 more was set aside, the appropriation to General Reserve, in addition to the usual £1,000,000 to Obsolescence and Depreciation, being increased from x ,000,000 to £1,500,000. The rate of dividend on the Ordinary shares is the same, but as the Deferred shares de converted into Ordinary shares and participate in the 8 per cent. dividend, instead of receiving 2 per cent., as they would have done in their old form, the cost of the dividend is greater.

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UNILEVER RESULTS.

The increase recently announced in the dividend paid by Unilever Ltd. and Unilever N.V. for the past year is fully justified by the accounts just published. The net profit of Unilever was £3,463,000, against £2,432,000 for the previous year, while the net profit of Unilever N.V. was 15,459,000 florins, against 13,568,000 florins for the previous gear. The Unilever dividend is 71 per cent. against 61 per cent. for 1935, and the N.V. Company is paying 51 per cent. against 4 per cent.

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SAN PAULO RAILWAY.

Shareholders of the San Paulo (Brazilian) Railway Company who have been passing through a time of trouble, partly due to the Brazilian exchange position, are now receiving some encouragement from the latest annual report. The receipts for last year showed a substantial increase, both in currency and in sterling, and there has also been a reduction in the expenditure. As a consequence, the general net revenue amounted to £426,927 as compared with only £287,548 a year ago. The Directors are, therefore, able to propose a final

dividend on the Ordinary Stock of 3 per cent., making 5 per cent. for the year, a distribution which compares with only 24 per cent. a year ago.

SCHWEPPES' PROFITS.

At the recent annual meeting of Schweppes, Limited, the Chairman, Sir Ivor Philipps, was able to present a Report showing both a rise in profits and a further strengthening of the financial position. The Reserve Account, it appears, has been increased to £365,000 by the transfer of £40,000 from profits, while the balance-sheet shows that the Cash position has been increased from £24,000 to £i3i,000. The net profits themselves increased by £3,000 and the Chairman stated that, in spite of a disappointing summer, the Company's sales had shown a steady increase.

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SCOTTISH AGRICULTURAL.

That the formation some few years ago of the Scottish Agricultural Securities Corporation was justified is proved by the Report of the Corporation's third full year of working. It shows that the Corporation is fully maintaining its activities in the matter of loans to the agricultural industry in Scotland. At the date of the Report, namely, March 31st last, long-term loans to the amount of £564,695 were completed, and the net profit on the Corporation's operations for the year amounted to £6,209. A sum of £788 is transferred to a special Reserve, and the balance of expenses of the issue of the 3} per cent. Debenture Stock and also the discount on that issue, is written off, leaving a satisfactory amount to be carried forward.