FINANCIAL NOTES

TURNER AND NEWALL RECORD PROFIT

TURNER AND NEWALL, the • asbestos combine, announce a record profit for the year ended September 30th. The net trading profits amounted to £1,361,694, an increase of £28,196 over the previous year. The dividend is maintained at zo per cent. for the year, and the appropriation to general reserve at Exoo,000. The whole of the profit increase is absorbed in taxation claims, for N.D.C. takes £84,000 against £40,000, because on this occasion it was in force for the whole of the financial year, whereas it applied to only half of the previous financial year. The balance to go forward is slightly higher at £1 16,610.

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MOLASSES FORWARD POLICY

Mr. F. K. Kielberg, the chairman of United Molasses, told shareholders on Friday that the deliveries in the first two months of the current financial year showed a zo per cent. increase over the corresponding period of last year and that, given peace and freedom to trade, they could face the future with well-founded confidence. Notwithstanding the unfavour- able freight market, the company's whole fleet of tankers, with the exception of two vessels which are undergoing repairs, is in commission. He also showed that he was prepared to back his judgement with substantial capital expenditure for he announced that they had invited tenders for three new tankers for replacement purposes, and that the approximate cost would be £600,000. He also showed himself unperturbed by the present controversy concerning the taxation of power alcohol. (Continued on page zio6.)

FINANCIAL NOTES (Continued from page 1to4)

Since the duty of 9d. per gallon came into effect in April the company has supported its continued use by supplying molasses at a very narrow margin of profit. He saw no reason to fear that the Government would adopt ,measures likely to kill the use of power alcohol in this country. * * * *

CARRERAS BRIGHT PROSPECT

Shareholders in Carreras, the cigarette and tobacco manu- facturers, who went to the meeting last Monday must have come away very well satisfied, After a year in which the company has increased its profits by over £250,000 and has declared a 5o per cent share bonus, the chairman, Mr. Edward S. Baron, was able to announce that sales so far this year are in advance of those of the corresponding part of last year. If general conditions remain fairly normal the directors hope to be able to maintain and still further develop the prosperity of the business. During the past year, he announced, home sales had expanded in all parts of the country and export sales had also increased in spite of very difficult world conditions. But he attributed the company's success not only to the increasing popularity of its products, but also to the continual efforts which are made to ensure greater efficiency. * * * *

MITCHELL, COTTS CAPITAL EXPANSION

Mr. Alexander Hamilton, the chairman of Mitchell, Cotts and Company, the London and South African shipping agents, naturally had a cheerful account for the shareholders, following upon the sharp increase in profits recently shown. The activities of the group have been greatly extended by the acquisition last year of the business of Frazer and Chalmers (S.A.), and quite recently by the acquisition of Contomichalos Darke and Co. whose main interests are in Egypt and the

Sudan. Mr. Co., reported that the former acquisition has already brought good results to Mitchell, Cotta and showed himself confident that the latter will do so. An increase in capital was agreed at yesterday's meeting to £1,25o,000 by the creation of 2,400,000 new 5s. ordinary shares, of which 555,000 are needed to cover the Contomichalos Darke acquisition.

* * * * ANGLO-ECUADORIAN PROBLEMS

Anglo-Ecuadorian Oilfields have recently been through a difficult period in Ecuador. They have had to agree to pay

tax arrears for the three years 1935, 1936 and 1937, to pay the general tariff on the goods they import and to pay an increased oil royalty. It was therefore natural that the chairman, Mr. H. C. R. Williamson, should hesitate to prophesy. But what little he did say of Ecuador was encouraging. He anticipates an early return to normal con- ditions there, and indicated that he was not without hope that the various questions still at issue between the company and the Government would then be decided. Mr. Williamson is less cheerful about the oil price situation generally. He expressed his keen disappointment at the reduction of American crude oil prices in spite of a strong statistical position, and warned shareholders that that tendency might make it difficult for Anglo-Ecuadorian to maintain their dividend.

J. D. M.