LANCASHIRE COTTON PROSPECTS
My impression of the outlook for the Lancashire Cotton Corporation is fully confirmed by the report and accounts. It is made perfectly clear that the jump in profits from L289,20$ to £557,825 had nothing to do with war-time bookings and was not a reflection of any sharp writing up of stocks. Naturally, the corporation had the benefit of a substantial rise in its stock values, but the balance-sheet figure is very conservative and leaves plenty of margin to cover this year's possibilities. In the chairman's review the question of labour supply and profit margins is frankly faced, but one detects a note of cautious optimism. There is a full order-book at satisfactory prices, and provided pro- duction can be maintained at the current high level earnings should show further improvement. At ,.3os. Lancashire Cotton £r ordinaries are a good speculative Molding to yield 71 per cent., and the preference, at 21S., are not dear in view of their conversion rights.
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