MONEY MATTERS Cheering News
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THE latest batch of announcements to come from
companies is unanimously cheerful. For example. BARR AND WALLACE ARNOLD 'TRUST-the Leeds-based coach proprietors and vehicle dealersreported that for the year ended December 31 last, pretax profits improved to £351,081 from £302,194 the previous years. The proposed dividend of 121°A is the same rate as the previous year, but the latest payment is on a capital increased by the "rights" issue made last July.
Another well-known group of coach proprietorsGEORGE EWER AND CO.-announced that preliminary figures for 1964 show that pre-tax profit will be more than £170,000. The previous year it was £134,893. The directors anticipate being able to recommend a final dividend of not less than 91% payable on a capital made larger by a 100% scrip issue and a one-for-four "tights" issue. This would make 15% for the year compared with an equivalent of 14% previously.
Some good transport contracts are on hand for the present trading year; there have been "very satisfactory" increases compared with the same period last year in group car sales, garages and transport division. At around their present price of 4s. 101d. these 2s. Ordinary shares yield a useful 61% based on the anticipated 15% distribution.
LANCASHIRE UNITED TRANSPORT had a better year in 1964. Net profit came out at £139,711 compared with £124,914 the previous year. Out of these higher earnings the directors recommend a final dividend of 61%, which makes the year's total 81% against an equivalent of 7% paid in respect of 1963. These £1 Ordinary shares changed hands recently in London at 22s. 6d.
During the next decade the directors of TRANSPORT DEVELOPMENT GROUP envisage a similar rate of growth to that achieved during the past decade. It needs a competent, confident management to go on record in this manner. But this same management was able to report that as a result of its efforts during 1964 income of the group soared from 120,211,000 to £29,893,000-a commendable increase compared with the previous year.
Further acquisitions are, it is stated, being negotiated. These 5s. Ordinary shares are currently priced at around 14s. 3d., at which they yield 4% based on the latest 131% dividend. They are, I repeat, a sound holding.
The result of a revaluation of the principal properties and UK subsidiaries of UNITED TRANSPORT CO. shows a value of £2,571,000 compared with the book value of £1,441,000, as at December 31, 1964. The company also stated that group profits for 1964 will not be materially affected by acquisitions made since the Last annual meeting, but the board anticipates these further subsidiaries will make a useful contribution to profits in respect of the current trading year.
Martin Younger