MONEY MATTERS
Page 84
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&KC. Pays a Shilling
GROUP pre-tax profits of the BRITISH MOTOR CORPORATION for the year ending July 25 last amounted to £20,563,886, compared with 114,804,102 for the previous year. Because of a much heavier tax charge the net balance is £11,962,771 against £9,357,522. Despite this increase in earnings the directors recommend a final dividend of 71d. per 5s. Ordinary share. This makes the year's total a maintained Is. per share (payable on a capital increased by a one-for-eight scrip issue) and is the minimum forecast.
Last April it was made known that during the first 28 weeks of the year the surplus on trading jumped to fl3m. from £7m. Thus the trading results of the year's second half appears to have been less satisfactory. It could well be that expenditure in getting new models on their way could have eaten into profits. Mr. Harriman's annual statement will be awaited by shareholders and the market with their usual high-level interest. As the prospects for the current year seem set fair the present return of nearly 6%, based on a dividend seemingly covered about twice, appears to me to be on the generous side.
The latest annual review by the chairman of HANGER MOTOR COMPANY (BIRMINGHAM)-Mr. W. D. Adams-has an encouraging ring about it, nicely topped up by his penultimate paragraph "The Future". "There can be no doubt", he comments, "that the annual sales of new vehicles are on an upward trend. Your board has every confidence that Ford products will retain a high degree of public acceptance. The continuance of our vigorous sales policies should enable your company to exploit this growing market."
Earlier, Mr. Adams had made reference to the new acquisition-Whitby's Garage Limited, Leicester. "Now that this company is in the control of the group we are more than ever convinced we have added a most useful asset." The hoard looks forward with much confidence to this latest acquisition making a satisfactory contribution to future profits.
The policy of this group is undoubtedly one of expansion and development. Mr. Adams confirms that the board will continue to explore opportunities for further acquisitions. Indeed, plans are well advanced for the erection of a large, self-contained, Ford sales-and-service depot at Castle Bromwich. Building is expected to begin in 1965. Mr. Adams states that the company was appointed the Ford "truck specialist dealer" for Birmingham, which he refers to as a "valuable franchise ". The annual meeting at the Grand Hotel, Birmingham, on November 27, should be a most pleasant affair. Martin Younger