ALL FUNDS NEEDED

Gisborne Herald, Volume LXXIII, Issue 22201, 11 December 1946, Page 6

ALL FUNDS NEEDED

P. & O. COMPANY GROUP BUILDING SHIPS ASSETS IN STATE STOCKS .10 3,11.1 LONDON, Dec. 1! The report of the du '' °J P. and O. witn the balance sheet, diaws attention to tie investments m > . eminent securities amounting to than £16.500,000. It explains that these resoiiiccs; a-ill be needed in full over the s ■ > to meet new construction, and jddds tin t other companies in the group also extensive programmes of r ew coiistru--tion to re-establish th-'ir Reets whicn will absorb practically the whole of the liquid resources ‘incluomg _the Go.ernment sercurities totalling J, cash and £4.000,000 shown in the group consolidated balance sheet, which covers P and O Company, Bnt.sh ana trdia Company and subsidiaries. _ The Daily Express financial editor, commenting on the consolidated balance sheet says that the P and O chairman, Sir William Crawford Cutnc ie vaaled that its hidden millions in the consolidated balance sli eet steps up the total assets from £32,000,000 to £97.000.000, including £ 75,000X100 of liquid assets, mostly in British Government securities. , , . “It is obvious that the real value of the assets is considerably higher, for the group's ships costing £56,000,000 have been written down to £15,000.000 and also the amount written off is some £7,000,000 more than normal depreciation,” says the writer. The financial editor, commenting on the director's warning that the gioups building progiamme will take practically the whole of the liquid resources, says: "This seems a bull point because the new ships will surely earn more than the 2j per cent on Government, securities, He considers that the deterred stock at £3 6s 3d are paying 12 per cent," “The bluest of blue chips.