29 DECEMBER 1939, Page 28

" BATS " AND DIVIDEND

So far the war has been kind to tobacco shareholders. Here is British American Tobacco, with its interests concen- trated in overseas markets, showing a profit for the year ended September 3oth of £5,165,453, against £5,590,886. This is a drop of only 7+ per cent. and is arrived at after providing for taxation. It will not be surprising if the full accounts show that, in spite of the succession of political crises which disturbed most export markets and especially China, the company's gross earnings showed very little change. The final dividend is reduced from 3+ to 2+ p.c., free of tax, which makes a total of 19 1-16 p.c., tax free, against 20 p.c. The board demonstrates its confidence in the outlook by maintaining the first interim for the current financial year at Iod. per Li Ordinary unit. As usual, the company's finance is cautious, a sum of £500,000 being transferred to provision for contingencies.