MONEY MATTERS— Diversified Ross Group
Page 79
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UNTIL comparatively recently it would have been inappropriate to comment upon ROSS GROUP in a motor transport context. But not any more. The latest annual report from this leading group shows clearly enough, in an admirable analysis of turn-over, that the dependence on the one-time predominant fishing interests has declined and that the board's policy of diversification has gained ground.
For example, last year the turn-over in the motor and transport division jumped by £1.4m. to £5-9m. and is now one of the main sources of the group's revenue. As soon as market conditions are considered to be sufficiently favourable it is the board's intention to make a fixed interest issue of capital in order to fund the indebtedness, At September 30 last year this amounted to almost £7.4m.
Traffic and sundry revenue of WEST RIDING AUTOMOBILE CO. for the year ended December 31 last amounted to £2,420,444, compared with £2,338,864 the previous year. The proposed final dividend of 6% makes the year's total 10%, the same amount as was paid in respect of 1963. These El Ordinary units changed hands recently at 22s. 3d. At this price they yield almost 9% based on the latest dividend.
Those shareholders who took the trouble to attend the annual meeting of HOLLINGDRAKE AUTOMOBILE CO. must have found it worth while from the point of view of encouragement about the prospects—and ninetenths of investment vision is in looking forward and the remaining tenth on viewing history. Trading results for the current year to date compare "very favourably" with those during the same period a year ago, stated the chairman, Mr. R. P. Hodgkinson. He regarded the immediate prospects as encouraging; the group has substantial order books.
Whatever the short-term effects of the imminent Budget may be, Mr. Hodgkinson looks forward with high expectations and with confidence. At their present price of 18s. 3d. these Ss. Ordinary shares yield a useful 63-% based on the latest 25% dividend covered twice by earnings.
TRENT MOTOR TRACTION CO. is controlled jointly by B.E.T. Omnibus Services and the British Transport Commission. The £1 Ordinary shares are quoted on the London Stock Exchange and changed hands recently at 35s. Net profit for the year 1964 amounted to 1212,817. compared with £203,385 the previous year. The proposed final dividend of 41%, tax• free, makes the year's total 7-1% payable on the increased capital. The equivalent payment in respect of 1963 was 61%.
In answer to a reader's query the majority of companies do not now charge a fee for registering a transfer deed, but your broker will know of' those companies who still do.
Martin Younger