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York expects buying boom

31st March 1972, Page 24
31st March 1972
Page 24
Page 24, 31st March 1972 — York expects buying boom
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Which of the following most accurately describes the problem?

• York Trailer Co Ltd's profits for the year ended December 31 1971 were £822,004 compared with £856,444 for the preceding year. Despite the adverse trading conditions York's share of a diminished market significantly increased and the company regards this as a good augury for the future.

£60,227 was removed from profits in 1971 through the financing for the first time of York rental vehicles by company subsidiary York Campbell Credit Ltd. This gained substantial capital allowances for the company and was a major reason for the lower tax charge and for the net profit after taxes (£506,858) being greater than last year (£492,944).

The company made a further big charge to profits in 1971 by reserving £35,000 for contingent liabilities in respect of containers sold over the past two years.

York says that its present profit target for 1972 is as good as anything in the past. "In a real sense the company has benefited from the 1971 depression, through being leaner and more critical of costs,"it says.

"The company expects to benefit from a decision from the Government soon on maximum legal weights and lengths to bring Britain into line with the Continent. This will give rise to spate of deferred buying," says York. "A second factor is the application of value-added tax next April. Until then the company's products attract no tax and hence a buying boom can be expected. Northallerton Plant are now installing facilities for coping with expected volume of orders late this year."

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Locations: York