MONEY MATTERS by Martin Younger
Page 72
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Atkinson Lorries maintain 15% dividend
rHERE IS little doubt that margins presented the board of I Atkinson Lorries (Holdings) with quite a problem during the year ended on March 31. Sales increased to £5.8 million from £5.3 million the previous year. But pre-tax profits fell to £319,944 from £367, 091. Despite the downturn the dividend is, as expected, being maintained at 15 per cent.
I am not alone in, to some extent, disregarding these figures; the prospects for the current and subsequent year seem to me to be of greater importance so far as the share price is concerned. And this view is strongly linked to the opening last June of the extension to productive capacity at Bar/16er Bridge. During the initial period of operation of this extension trading difficulties were many. But I expect to see increased profits during the current year from this addition. And even more during the following year.
Judged by the fact that at their present price of around 7s. these 2s. Ordinary shares yield the modest amount of 41 per cent it seems to me that the market feels pretty much the same way about them.
There was encouraging news for the shareholders of United Transport. In his latest annual review the chairman, Mr. J. H. Watts, forecasts that profits during the current year "should not be below" those of the previous year, which were a record for the group. Mr. Watts points out that the restrictions on investment overseas continues to make it "extremely difficult" for the board to co-ordinate development plans on the Continent.
In his latest annual report the chairman of Williams Hudson confirms the forecast he made earlier that the group will achieve a "substantial improvement" during the current year compared with a year ago. He adds: "Thereafter we anticipate continued progress reaching in the year 1968/69 the level of profits of our record year 1964/65". The diversification policy commenced some years ago brought first benefits during the past year. Mr. Simpson regards this as "not untimely" in view of the difficulties experienced by the wharfage fuel and shipping companies.