'Marginally lower' warning by BET
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FrHE pre-tax profits of BET Omnibus Services (British Electric Traction controls the company) are expected to be "marginally lower" in respect of the current trading year compared with those for the previous year.
At the half-way stage the total was £448,000 against £481,000 for the same period the previous year. The directors have declared a second interim dividend of 3 per cent. To date this makes a total of 6 per cent. The board hopes to be able to declare a final payment of 5 per cent to make the grand total for the year unaltered at Ii per cent.
More gloomy news from vehicle distributors. For the year that terminated on September 30 last the directors of Glanfield Lawrence have decided to slash the dividend to 2+ per cent—a cut of 7+ per cent compared with the previous year. Group pre-tax profits amounted to £31,239 which makes them £49,599 lower than in the 1964/65 trading period.
There was a similar sorry tale from P. J. Evans (Holdings). For the last trading period group pre-tax profits declined to £107,945 from £138,495 the year before, while after a reduced tax charge the net balance came out at £45,286 against the £61,108 total previously. Because of the set-back the directors propose a final dividend of 10 per cent to make the year's total 15 per cent-4 per cent less than the previous year.
In his latest annual review the chairman of Turner and Newall, Mr. R. G. Soothill, wisely takes a cautious view of the current year's prospects. "In the case of our trade in the United Kingdom, there seems little reason to expect any marked improvement during the remaining nine months to September 30 next", he comments. "Much will necessarily depend upon the fortunes of the construction and motor industries."
But he assures members that the directors "will continue to take all measures within our power to secure economy in every field, and to press on with the drive for increasing productivity". These £1 Ordinary shares (a slightly firmer market recently) yield 7 per cent at their present price of 30s. 9d. I would advise a holder to hold.