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TMONEY MATTERS'''

28th January 1966
Page 58
Page 58, 28th January 1966 — TMONEY MATTERS'''
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Braid Group's profit up

FOR the year that ended on September 30 last the net profit of BRAID GROUP increased to £183,925 from £126,490 the previous year. The proposed final dividend of 171% maintains the year's total at 25%. At around their present price of 3s. 44d. these 1s. Ordinary shares yield a useful 7% based on the latest dividend.

The directors of P. J. EVANS recommend a final dividend of 14% to make a total for the year ended September 30 last of 19%. This is 21% more than was paid the previous year. It comes out of a trading profit of £138,495 against £127,685 the year before. But, the board comments, in addition to these better trading results the net profit benefited substantially from changes in the tax basis, and the benefit will apply to this particular financial year only.

On that account the increase in the distribution now recommended should to some extent be looked upon as exceptional. These 2s. Ordinary stock units are quoted on the Birmingham Stock Exchange, the price at the moment being around 5s. 9d.

It was announced that UNITED CARRIERS are to purchase the capital of H. K. R. (Transport). The price is £65,000-83,738 Ordinary shares of 2s. each plus £37.000 cash. For the year that ended on April 30, 1965, pre-tax profits of the new subsidiary amounted to £13,153. This joining of forces is expected to result in considerable economies and improvements which eventually should produce higher profits for the parent group.

In these notes quality of management is often stressed as a cardinal investment factor. Well-known London stockbrokers 'Sutherland. Pershouse, Millar and Co. have this to say in their latest investment letter to clients :

-We still believe that the interests of investors who are prepared to ignore the intermediate fluctuations and buy for the medium-tolong term are best served by good class equity stocks. But selectivity is now more important than ever before and we believe that the most important point to look for is good management".

They go on to define good management as the ability of a company to perform well in adverse circumstances.

Martin Younger

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