Venturers' Corner The speculative investor who does not mind holding
shares in small companies might do worse than consider the merits of Manganese Bronze and Brass ordinary is. shares at today's price of 8s. This old-established under- taking specialises in the manufacture of marine propellers and self-lubricating bearings. It is therefore drawing sub- stantial benefit from the revival in commercial shipbuilding, as well as from Admiralty orders. For 1938 the net profit, after depreciation, rose from £52,692 to £69,188, and the ordinary dividend was raised from 70 to 75 per cent. The higher rate, however, represented a very conservative divi- sion of earnings which amounted to over 15o per cent. on the ordinary capital. Altogether, as much as £38,000 was appropriated for general reserve, contingencies and taxation reserves.
At the meeting in April the chairman intimated that the final quarter of the year had been the best, and that sales and profits between October and December had easily exceeded any previous figures. Moreover, the order book had remained well filled in the first quarter of 1939. My own feeling is that this company should continue to enjoy a keen demand for its products, which should enable the recently extended plant at Ipswich to be kept fully employed. At 8s. the ordinary Is. shares yield nearly 91 per cent. on the 1938 dividend and nearly zo per cent. on last year's earnings. As the chances are that both earnings and divi- dend will be increased in 1939, I regard the shares as a good high-yielding speculation. CUSTOS.
Previous page
