PROMISE AND PERFORMANCE.
The first report of J. Darnell & Son, Ltd., which has just been published, is a thoroughly satisfactory one in the sense that it shows that in spite of trade depression the profit achieved by the company during the year was well in excess of the figure estimated in the prospectus as a minimum. The estimated minimum figure was about £30,000, while the profit secured for the year was £54,747. A further good feature in the report is the indication of a conservative policy. Out of the profits the whole of the goodwill, amounting to £20,649, has been written off, together with the interest on purchase consideration, making a total of £27,316. After deducting income-tax there is an available balance of £14,634, and owing to the comparatively small amount of the capital the directors are able to recommend a dividend at the rate of 16 per cent. per annum from July 14th to December 31st last on the ordinary shares. It is pointed out in the report that more than half the profit of the year has been allocated to writing off items of a non-recurring nature, while the balance-sheet is a liquid one, showing among other things a total of cash of over £83,000.
A. W. K.
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