MONEY MATTERS by Martin Younger
Page 42
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Allisons—welcome newcomer to the Exchange
rTIHE Ordinary shares of 2s. each of one of Scotland's largest road freight contractors—Allisons Freightlines—will be a welcome newcomer to the London Stock Exchange.
In 1946 the company was located at Dundee as a transport clearing house. But by 1953 it was operating 45 vehicles hauling general traffic to and from England. Progress has been such that the group now owns 241 vehicles. The carrying of steel from the Gartcosh works of Colvilles has been a large part of the group's turnover. Some of the UK's leading companies in the fields of paper, jute, foodstuffs and man-made fibres are to be found on the "customer list".
During the past decade the profits record is basically one of expansion. For the year that ended on April 30 1957, combined profits amounted to £24,131. There were a couple of set-backs, but the total for the year ended April 30, 1966, was £87,023 So far as the outlook for the current year is concerned, after taking account of the prevailing standstill on prices and incomes and the economic situation generally the directors forecast that pre-tax profits will (spared unforeseen circumstances) be not less than £110,000 and this after allowing for a full year's charge on the Debenture issue. The intended dividend is 14 per cent. The prevailing market background may not be the most suitable for new issues, but once the brightness returns I look to a good deal of interest being taken in these shares.
Despite the inhibitions of the credit squeeze the order books of Fodens are described by the chairman as being "very healthy". Mr. A. Stubbs tops-up this pleasant piece of pre-Christmas news for his fellow-members by telling them that the directors expect the results for the year that will end on March 31 to show an improvement upon those for the previous year.
Leyland Motor Corporation owns more than 25 per cent of the Foden equity. Following the Leyland bid for Rovers "will Fodens be next on the bid-list?" is a question one has heard in the City. Following the latest piece of news the price of Fodens moved up more than Is. to around 39s. 6d. at which they still yield as good as 6+ per cent. Holders should hold—tightly.