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Rum Ey MATTE Rs mu,

15th April 1966, Page 79
15th April 1966
Page 79
Page 79, 15th April 1966 — Rum Ey MATTE Rs mu,
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Rhondda setback

LAST year was not a good one for RHONDDA TRANSPORT CO. " Pre-tax profits declined to £52,254 from £80,375 the previous year. After a considerably lower tax charge the net balance came out at £34,254 against £39,375 previously. In view of this setback the decision of the directors to reduce the dividend to 5% tax free (final payment 34-%) from 7-1-% tax free in respect of 1964 is not surprising, but none the less will be disappointing to shareholders.

POINTER GROUP HOLDINGS propose to raise approximately 371,500 by means of a "rights" issue. This news was given to shareholders at the recent annual meeting of the company. The proposed issue will be on the basis of one-for-four at 10s. per share and will consist of 750,000 Ordinary shares of 2s. each.

The new money is earmarked for the reduction of the bank overdraft and also to increase the scope of the company -for raising further fixed interest capital in the future, whenever the occasion should arise".

In the absence of unforeseen circumstances the directors expect to maintain dividends on the Ordinary shares at the rate of 3212% on the capital as increased by the rights issue in respect of the current trading year.

The statement adds that the directors, their families and the trustees of certain directors' family trusts have made arrangements for a sufficient number of the new shares to which they are entitled to be subscribed by the public in order to place the company outside the provisions of the Finance Act, 1965, relating to close companies.

It is further stated that on the reorganization as from March 31 the businesses of all subsidiaries excepting Pointer Storage Ltd. are being consolidated into three new subsidiaries—Pointer Contractors, Pointer Aggregates and Pointer Group Transport.

The chairman, Mr. Peter Pointer, added : "This change will improve the organizational structure by removing some of the complications of operating 12 companies. It is not, however, the intention to impose undue centralized control, as the group has always placed emphasis on local management for quick decisions and close contact with customers". The trading names of companies now losing their separate identity will, where appropriate, be maintained.

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