HARRODS' ACCOUNTS.
The tendency for gross profits to rise much more quickly than net profits is also brought out by the full accounts of Harrods. It will be remembered that the net profit rose by £17,482, and that the increase was fully absorbed by the Coronation bonus to the staff and by N.D.C. There was an increase of £103,582 in the gross profits, which amounted to £2,712,962. But this was offset by a rise of £36,178 in the pay roll, apart from Coronation bonus, and a rise of £18,831 in the cost of repairs. Harrods are taking the unusual step' of writing up their holding of 90o,000 £i shares in D. H. Evans & Co. by £600,388 to £1,181,890. This brings the balance-sheet value of the investment into closer relationship with the original value of the purchase consideration which • was partly, in Harrods shares. It also has the effect of adding a further £600,388 to General Reserve. Under the new arrangement the shares of D. H. Evans stand in Harrods' balance-sheet at about £x 6s. 3d. per share, which is still a conservative valuation.
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