FINANCE AND INVESTMENT
By CUSTOS
THERE is still the seeming paradox of good markets in Throgmorton Street in face of far from good news from the war fronts, and so, I am convinced, it must continge. While there is precious little incentive to open up fresh financial commitments, there is nothing to be gained by masterly inactivity. Investors refuse to sell, and prices simply do not go down. So far as gilt-edged stocks are concerned, the Treasury's recent decision over War Bonds is a significant pointer. For the present, at any rate, Whitehall is
PARTINGTON STEEL PLAN
At long last the liquidator of Partington Steel and Iron has brought forward his plan for distributing the assets, and very ingenious they are. Holders of the Second and Third Preference capital are given three offers, two of them a combination of Second Preference shares in Lancashire Steel and cash, the third full repayment in cash. The Lancashire Steel LI Second Preferences, carrying a 51 per cent. non- cumulative dividend, are valued at par for the purpose of the offer and should command this price in the market when dealings begin. One now wonders how long it will be before Pearson and Knowles follows Partington into voluntary liquidation, thus paving the way for the final winding-up of the affairs of Armstrong Whitworth Securities. Although one cannot yet be sure, it looks as if the Pearson and Knowles' preference capital, embracing three classes, will be fully covered by the time the curtain is rung down. content to hold on to the existing interest structure without attempt- ing to break into new ground. This seems to me to be the path of wisdom, since a rebuff might inflict a serious blow on investment morale. In the speculative groups, buyers still hold the whip-hand, and are likely to keep it unless the war news begins to look really ugly.
RICHARD THOMAS RESULTS
After the resumption of ordinary dividends it is a little surprising that the full accounts of Richard Thomas and Co. should reveal a moderate decline in trading profits. For the year to March 31st trading results of the group were down from £3,999,762 to £3,541,611, which seems to fulfil the chairman's forecast at last year's meeting that the tinplate side of the business was not very promising. Fortunately, from the dividend ' standpoint, the interest bill was £43,100 less, and whereas a year ago £363,677 was provided for special writing down of stocks, the only similar charge on this occasion is one of Lioo,o0o applied in writing down old coke-ovens at Redbourn. Profit, before tax, was thus only slightly lower at £2,027,535, against £2,181,375, and as the tax provision was down from £1,671,036 to £I,425,000, the net figure after tax was £92,000 up at £58o,422. Provision under the War Damage Act was £95,00o, against £200,000, general reserve has again received a transfer of £zoo,000, and in the accounts of the parent company the carry- forward has been increased by £102,400 to £255,631. That the board has acted conservatively, as would be expected, is apparent from the addition to the carry-forward and the further strengthening of the group's finances. Debenture liabilities have been .reduced by £450,000 and liquid resources have been increased. It also appears, from the rise in the stock-in-trade and work in progress items, that the scale of operations has been enlarged. Quoted just over par to yield a fraction under 5 per cent., the 6s. 8d. ordinary shares are worth holding as a lock-up speculation. At 29s. 3d. the pre- ferences, yielding over 61 per cent., on the ro per cent. dividend, look to me the better value for money.
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