Venturers' Corner
From all appearances this year is going to see many colliery output records in Great Britain. Home demand reflects the steadily quickening tempo of heavy industry, and especially of the iron and steel trade, while export sales, the mainstay of the South Wales field, have begun to expand spectacularly. As selling prices have also improved, I think we may look with confidence for some excellent colliery profits this year. From a speculative standpoint the 4s. deferred shares of Yorkshire Amalgamated Collieries are an interesting low-priced proposition around 2s. 9d. With its headquarters in Chester- field, Yorkshire Amalgamated is a big group, and it has recently • pursued an energetic policy of reorganisation, the effects of which have been evident in a rising curve of profits.
Against a net figure of £50,273 in 1935, profits for the year ended March 31st, 1937, have risen to £239,487, and the ordinary dividend has been raised from 2 per cent. to 5 per cent. free of tax. The deferred shares, which come into the picture after the ordinaries have received 8 per cent., are thus beginning to look interesting. Another moderate rise in profits is all that is needed to bring the deferred capital into the dividend list, and then they are entitled to 3 per cent. for every 1 per cent. above 8 per cent. paid on the ordinaries. The , next accounts are not due until the spring, but it can be assumed that, barring accidents, they will show a further sharp increase in earnings.- -The deferred shares should therefore move
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