* * * * Venturers' Corner Continuing our search among
companies whose capital has been drastically reconstructed, we may pause this week to glance at the position of G. D. Peters, the Slough engineers. During the depression this company, which makes railway rolling stock and arc-welding equipment, tramway and road vehicle seating and braking, passed through difficult times. Losses were incurred and working capital ran short. Last year, however, recovery set in sufficiently strongly to justify a reorganisation scheme, as a result of which the issued capital has been scaled down to £101,250 in 5s. shares, including ioo,000 shares recently issued at par. The sig- (Continued on page 990.)
FINANCE AND INVESTMENT
(Continued from page 988) nificant point is that the 1937 profits, after depreciation were equivalent to about 37 per cent. on the present capital and that a dividebd at the rate of 15 per cent. per annum was paid. This year a larger capital ranks for dividend but it is reasonable to anticipate that earnings will show further expansion. Orders in hand are considerably larger than at the corresponding date of 1937, and it will be surprising if the company is not able to maintain the 15 per cent. dividend rate and make a useful allocation to reserve. Since the issue of new capital last month the 5s. shares have improved from 5s. 9d. to 8s. 3d. despite unfavourable market condi- tions, which suggests that well-informed buying has been in progress. At 8s. 3d. the yield on a 15 per cent. dividend basis is roughly 9 per cent., while the indicated earnings yield is at least 20 per cent. As a speculation the shares should pay well to put away for the next report.
Curros.
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