'MONEY MATTERS'
Page 67
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Tartan Arrow profits rise
00D 1965 results of TARTAN ARROW had been expected by the market. Indeed they turned out to be excellent. ngaged as express road hauliers on main trunk routes between cotland and the south-east of England; this group has just repor td profits for last year amounting to £147.677. These ompared with £114,451 the previous year. Despite these higher arnings, however, the directors are maintaining the dividend at 5%. The group recently agreed with British Railways to run its wn special trains between London and Glasgow. These 2s. )rdinary shares are quoted on the Scottish Stock Exchange; le current price is around 375., at which level they were recently ought.
There was good news for the shareholders of UNITED :ARRIERS. The year that ended on January 31 last saw further xpansion by this well-known group. Pre-tax profit jumped by most £50,000 above the minimum forecast of £324,928. The roposed final dividend of 14% makes the year's total distribution 5%. This compares with the not less than 22% foreshadowed, The latest dividend of 25% is payable on a capital made larger y the recent rights issue on the basis of two for one at par, which was for the purposes of financing the purchase of Harrison and Page, paying off the overdraft and providing additional cash.
A dividend of 58% was paid in respect of the previous year on the smaller capital. The latest news stimulated support for these 2s. Ordinary shares and the price moved on to a new 1966 peak price of 10s. At this level they yield a straight 5% based on the latest distribution. They appeal to me as good value for money.
In a letter sent to shareholders by the chairman of TURNER and NEWALL—Mr. R. G. Soothill—referring to the group's bid for Engineering Components, he states that a close and friendly relationship has existed between the two companies for many years. He adds; "The vertical integration which would result from acceptance of our offers to the stockholders of EC would greatly facilitate this technical collaboration and would also provide opportunities for the economies of rationalization."
It is estimated that profits of EC for the year to end December 31, 1966 will be "not less than £1,350,000 before taxation."
Martin Younger