ARMSTRONG WHITWORTH DEVELOPMENTS
At last my A.W. Consolidated Trust egg is hatching out. It is just a little behind schedule but the egg is full sized and has a scarcity value in these disappointing days. As I foreshadowed last December, the Armstrong Whitworth Securities Company has now amassed sufficient cash from the sale of assets to enable it to repay its preference capital, and shareholders will be asked to approve of this plan at a special meeting on June t6th. Voting control is with the holders of the " B " ordinary shares, who are the Securities Management Trust, so that one may assume that the scheme, which is thoroughly sound, will go through. After that, the Company will file a petition to the Court which, in turn, should encounter no obstacles when the necessary for- malities have been complied with. The way will then be clear for the Armstrong Whitworth Securities Company to transfer a payment of £750,000 to the A.W. Consolidated Stock Trust as holder of 750,000 second preference shares.
Just how long these formalities will occupy one cannot be absolutely sure, but I shall be surprised if the Trust does not raise its cheque by the end of July. It will then, I am officially assured, distribute this sum to its Income Debenture holders, who will be entitled to a cash payment of just under £75 per Do° of stock. Those who bought five months ago when the price was around £64 will thus come .cut very well with a handsome tax-free return on their outlay. Until a few days ago the price was inclined to hang fire around £65, but it has now risen sharply to L'72, at which the stock is reasonably valued, allowing for the cost of commission and stamp duty, as a short-dated investment. Holders should, of course, see things through and await repayment, thereby avoiding selling commission.
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