3 MARCH 1939, Page 52


Whether or not financial crises stimulate the desire to smoky, the tobacco companies have produced very favourable result,. Gallaher, Limited, the Belfast company, earned a net figure of £691,111 for 1938 against £615,859 before providing for taxation, and, after tax, £46I,111 against £430,859. The 1938 profits easily constitute a new record and leave no doubt that if earnings are maintained the company will be able to continue its 271 per cent. total distribution on the increased capital which it is now to issue. Shareholders are offered 284,59'- new ordinary shares of £i each at the very favourable pricz (Continued on page 386)


(Continued from page 384) of 3os. per share in the proportion of one new share for each five held. This compares with a present market price of around £7.

The total distribution of 27 per cent. for the year includes a final dividend of 15 per cent. and a cash bonus of 5 per cent., as in the previous year. This leaves ample funds to he reinvested in the business. Contingencies allocation is £3o,000 against £5o,0oo. Reserve receives £92,867 against £55,387, and a further sum of £132,133 has been transferred to reserve from share premium account.

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