MONEY MATTERS
Page 72
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Wilkinson's Higher Interim
RE was splendid news for the shareholders of 'T'HERE WILKINSON'S TRANSPORT GROUP. The directors have decided to lift the interim dividend to 10% from 7% paid a year ago. Announcing this in a half-way-stage report they forecast a total payment for the year of not less than 253/4-5% more than was paid in respect of the 1963-4 trading period.
The figures for the six months that ended on September 30 last are described as showing a "substantial increase" over those for the same half-year previously. These shares have been commented upon favourably from time to time in these notes; my advice, of course, remains "stick tight to them ".
The progress of HARGREAVES GROUP (road haulage is a prominent activity) goes on. For the halfyear to September 30 last turnover increased to £16.4m. compared with £15m. during the same period the year before. From this trading, net profits of £265,000 accrued, an increase of £45,000 over the amount for the same period previously.
It is pointed out in the interim statement that the group's business is seasonal; the results of the year's second half are usually better than those of the first half. At their present price of around 42s. 71d. these units yield 7%. My opinion is they should be kept for further growth.
The half-year to July 31 last was a good one for UNITED CARRIERS. Group pre-tax profits for the six months jumped to £147,759 from £103,981 for the same period a year ago. Because the tax on dividends paid during the fiscal year to April 5, 1966, does not have to be accounted for to the Inland Revenue, the interim dividend is being lifted to 11% from the 7% forecast paid on a capital made larger by a rights issue. A total for the year of at least 22% has been forecast, but it is warned that the increase in the interim payment does not necessarily point to a corresponding rise in the total for the year. In his latest annual review sent to shareholders the chairman of SEDDON DIESEL VEHICLES—Mr. H. Redmond—states that he is confident the current trading year will show "considerable expansion" throughout the group with an increase in profits. He reports that the order book is "very full", orders on hand being at a higher level than at any time in the history of the company. Production is increasing.
Martin Younger