MONEY MATTERS
Page 63
If you've noticed an error in this article please click here to report it so we can fix it.
Dyson's Lower Profit Margins
f N an interim statement the directors of trailer makers 1 R. A. DYSON report that the present order book is substantial and satisfactory. But the spice is to a point taken off this gingerbread by the news that profit margins are running at a lower level. The principal reasons for these reduced margins, it is stated, are labour difficulties and fierce competition both in home and overseas markets. Nevertheless, the interim dividend is being maintained at 51%, which is being cautiously interpreted by the market as boardroom confidence in the outlook.
The chairman of SEDDON DIESEL VEHICLES— Mr. H. Seddon—has an encouraging message for shareholders under the heading "Future Prospects" in his annual report. " Trade is very buoyant", he comments, "and with the blend of youth and experience which we are endeavouring to foster in the group, I am confident we shall overcome the production difficulties and the company's profits for the year to end June 30, 1565, should improve."
During the year under review production and turnover increased, but, largely because of the difficulty of obtaining components from outside sources, production was, in fact, lower than anticipated. Every endeavour is being made, however, to increase the volume of components' made in the group's own factories, and Mr. Seddon expresses the hope that "certain action we propose to take will reduce this problem during the present year ". Profits for the year ending June 30, 1964, were undoubtedly inhibited by the efforts put into the new model 13/4/354, but when full production of this model is achieved, as it is hoped it will be during the second half of the current trading year, Mr. Seddon looks to profits increasing.
The trading activities of ROSS GROUP are diversified and include a sizeable road haulage division. The results of this group for the year ending September 30 last are expected to be announced next March. During the year to September 30, 1962, trading profit dipped to £2•09m. from £227m. the previous year. For the year ending September 30, 1963. however, there was a smart recovery to £.3-60m. And this improvement in profitability was more than maintained during the first half of the 1963-64 trading year; it extended to all divisions of the group.
Since the latest balance sheet was issued there has been a "rights" issue on the basis fie 1 for 4 as well as a small issue of capital re new acquisitions. Group turnover during the trading year 1963-64 rose by Cl4m. to £62m. compared with the previous year. The market expects to see this expansion having continued during the year ending September 30 last. At their present price of around 9s. these 5s. Ordinary shares yield a useful 61% based on the indicated dividend of 12%.
Martin Younger