Venturers' Corner "Do you want a yield, -without alarming risks,
of over to per• cent. ? It can be had on the 15s. cumulative participating preference shares of Henlys, the motor distributers, now quoted at 18s. Profits for the year ended August 31st, 1937, have risen from £35,000 to £56,500, so that preference holders have again received not merely their 71 per cent. basic cumulative dividend, but an extra 5 per cent., making 121 per cent. in all, by virtue of their participating rights. Even so, the full 121 per cent. rate was covered over three times by net earnings and so per cent. was paid on the ordinary shares as well as £20,000 to reserves.'
This company has been broadening the basis of its business in recent years, and impressive petrol stations and showrooms on the Great West and the North Circular Roads now testify to the board's enterprise. My own view is that prospects are good, especially as the Rover and the S.S. agencies should yield a handsome profit this year. Motor dealing and distribturing is a speculative business, closely dependent on general trade con- ditions, but this company is soundly financed and well entrenched. On a to per cent. yield basis I think the par- ticipating preferences are worth buying as a speculative invest- ment. It is probable that new funds may be needed for extensions, but if, as seems most likely, new ordinary shares are issued, the-preference position;ivillbe strengthened. CUSTOS .
[Readers' empdriesi or requests for advice, regarding particular shares will be anrwersd periodicalty in print or by letter. Corre- spondents who do not desire their -names to appear should append initials or a pseudonym to their questions.] -
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