A.E.I. PROSPECTS
There are some interesting sidelights on the " business as usual "-defence work problem in Sir Felix Pole's survey of the activities of Associated Electrical Industries. He made it plain enough that the group of companies which A E.I. controls have been steadily increasing their contribution to the nation's defence requirements. At Trafford Park the works had been enlarged to cope with Air Ministry and War Office contracts and a new factory was nearing completion for the manufacture of aircraft in collaboration with A.V. Roe and Co. With John Brown and Co. the group had acquired a financial interest in the Westland Aircraft Com- pany. Preferential treatment, it seems, is given to the demands of such special work, but every effort is being made to arrange matters so as to involve the minimum of interference with the group's ordinary business.
Last year, Sir Felix explained, a record volume of woe. was put through and a record profit was made. He als(, pointed out, however, that the order-book at the end 0, 1938 was a little less than in December, 1937, and tha' taxation made big inroads into the net sum available fo! -dividends. At 40s. A.E.I. ir Ordinary units. yield 5 Pc cent. on the 1 o per cent. dividends. I still regard them a over-priced in relation to English Electric, at 335. 6d., paYi13:: the same rate and earning considerably more. Associateo Electrical Industries' balance-sheet is stronger and it has the better financial .record, but both these facts seem to me to be more than adequately allowed for in the yield dis- parity. English Electric should be able to.maintain.its divi- dend comfortably on the larger capital ranking this year.
(Continued on page 612)
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