Venturers' Corner I see that Dobson and Barlow, one of
the smaller ur,its in the textile machinery trade, have sprung a surprise in announcing an interim dividend. The inference I should draw is that Textile Machinery Makers, the operating com- bine in which Dobson and Barlow has a shareholding interest, has fulfilled recent hopes by paying a dividend on its ordinary capital. This, of course, is good news for Platt Brothers (Holdings), whose merits I outlined here only a icw
(Continued on page 614)
FINANCE AND INVESTMENT
(Continued from page 612) weeks ago. Since I explained the speculative attractions of Platt Brothers LI Second Cumulative Participating Preference shares the price has improved from 14s. 6d. to 16s. despite the vicissitudes of markets. In my view the chances of these shares receiving their maximum dividend of 7 per cent. in respect of the year to March 31, 1939, are very good indeed. Priced to yield over 81 per cent., the shares are still cheap.
So, too, are Platt Brothers 6s. 8d. ordinaries at the current price of 4s. 9d., although they are obviously more specula- tive. For the year to March 31, 1938, holders received a 5 per cent. dividend, but this was not covered by earnings. Assuming, however, that Textile Machinery Makers, in which Platt Brothers is a very large shareholder, is paying an ordi- nary dividend, a 5 per cent. payment for the year just ended should be well covered. On this basis the yield offered is roughly 7 per cent., which seems attractive enough in view of the promising prospects. Not merely has the group obtained useful armament work, but its basic business of making textile machinery stands to benefit appreciably by the Cotton Enabling Bill.
Previous page
