MONEY MATTERS
Page 73
If you've noticed an error in this article please click here to report it so we can fix it.
United Carriers 'Rights'
'THE " rights " issue foreshadowed by UNITED 1 CARRIERS is to be on the basis of two-for-one at par and 3,095,894 Ordinary shares of 2s. will be issued. Net proceeds of this issue, amounting to approximately £305,500, will go towards financing the purchase, just announced, of Harrison and Page, pay off the overdraft and provide finance for further expansion. More acquisitions are expected to he finalized within the next few months.
The chairman of GEORGE EWER states in his annual review that it is too early to assess the likely full effects of the proposed corporation tax, particularly with regard to investment allowances, on new rolling stock. Nevertheless, he remains optimistic that another successful year will be enjoyed by this group during 1965.
The shareholders are warned by the chairman— Mr. S. M. Caffyn=that CAFFYN'S GROUP will "undoubtedly encounter difficulties" during the trading year 1965-6. But he hopes for satisfactory" results at the year's end. He comments: "We believe that road transport is now so much a part of our way of life that industry and individuals will not restrict their use of vehicles."
Mr. Caffyn adds that with a corporation tax at 40% and income tax at 8s. 3d., year-end retentions would amount to about the same. These 5s. Ordinary shares are currently priced at around 18s. ex-dividend, at which they, yield a useful 51% based on the latest dividend of 20% covered comfortably more than twice by earnings. Group net profit of H. WOODWARD AND SON— commercial vehicle distributors and bodybuilders—for 1964 amounted to £56,915, little different from the £56,974 earned the previous year. The proposed final dividend of 141% makes the total for the year unchanged at 20%., Trailer makers R. A. DYSON earned more during 1964. For the year ended March 31 last net profit jumped to 127,836 from 119,628 the previous year. Nevertheless, the directors propose keeping the year's total dividend at the previous year's level of 18% with a final payment of 121%. The "A" shares, quoted on the Liverpool Stock Exchange, are currently around 9s. 6d. ex-dividend.
Martin Younger