Good iron and steel, coal and shipbuilding results continue to come in, reports the "Financial News." John Brown and Ca., which combines all three activities and has, in addition, a Jame general engineering business, reports a 28 per cent. rise in profits over the year to March 31 last. The gross figure is now 14715,995, and the net profit £488,993.
Earnings on the capital increased by dost year's issue on bonus terms and by this year's free scrip distribution of 66% per cent. total 20 per cent, tax free. As already announced, 15 per cent, tax free, is being paid on the new capital, so that, after the transfer of £50,000, against £100,000, to reserve, there remains a sufficient surplus to increase the carry-forward by £66,898 to £162,- 360.
16 was stressed in the official announcement of the scrip distribution that reserves were "more than sufficient to meet any contingency which can reasonably be foreseen." Shareholders are. therefore, reaping the benefit of conservative asset valuations—the share capital was drastically reduced in 1930.
The directors' report recites a long list of imposing mercantile and naval ship-building contracts completed and in hand. These include the "Queen Mary" and her sister ship, now on the stocks. The engineering works are well employed, and the company's principal subsidiary, Thos. Firth and John Brown, has increased its dividend from 12% per cent, to 15 per cent, tax free. The working capital position shows great improvement.
Last year net current assets totalled no more than £196,000; they now amount to £1,307,000, and the company has over 21,500,000 in Gilt-edged securities and in cash. Criticism can now be levelled only at the lack of consolidated accounts—over cue-third of assets valued at £6,027,- 791 consists of interests in subsidiary Mes. Rising costs have evidently been offset by the greater volume of turnover and by the operating economies resulting from the company% modernization and extension programme.
Text read from the printed page and cleaned; old type leaves the occasional error.