Industrial Holding Companies
On previous occasions I have expressed dis- like of industrial holding companies as invest- ments, with the excepton of THOMAS TILLING, which is in a class by itself and always looks dear in the market. In a period of recession and falling profit margins the effect on the parent's equity profits can be catastrophic. In- variably the parent company has bought a hire-purchase company and this makes matters worse. The CHARTERHOUSE GROUP, which antici- pated better profits last April, now reports that its hire-purchase losses need further provision against bad debts. No dividend may be paid. The shares, which were as high as 40s. 3d. this year, have fallen to 19s. 6d. As long ago as September last year I critised NORCROS when the shares were 45s. 6d. They are now 18s. 3d.
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