MONEY MATTERS
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Avon Rubber Compar )ks Abroad
AT the moment about one fifth of output is exported by the AVON RUBBER CO. LTD., and this does not take account of the shipments that go as component parts of other exports. Stating Ibis in his annual review, the chairman, Mr. C. M. Floyd, indicated that the directors had given special attention to the group's export business. The policy was to develop more of its own branches in foreign countries. During the year under review new selling companies were established in Norway, Sweden and Switzerland. Mr. Floyd commented upon ever rising costs. These must be overcome. To do this he described the board's current policy of pushing ahead with further modernization as "absolutely essential ".
At September 30 last bank overdrafts of WESTOVER GARAGE blood at £351,717, whereas a year earlier they amounted to 086.971. But the directors are fully alive to the need to correct the lack of liquidity in assets. The chairman, Mr. P. Evans, stated that ways and means of doing so were being actively considered. Mr. Evans said that despite every effort at trying to restrict them operating costs continued to increase. And he considered the present economic and political situation of the country as being likely to produce measures that would in the short term be unfavourable to a further increase in industrial profits.
Net profit of the motor division during 1963-64 was one fifth higher than during the year it fore. Unless
there was governmental action to restrict demand the board was reasonably confident that this division would contr:hute yet greater profits during the current trading year. At around their present price of 20s. 6d. these 5s. Ordinary shares y'eld 51% based on the latest 221% distribution, a payment which the board hopes to be able to at least maintain in rcspect of the present trad.ng year. Mr. Floyd described the group's prospects as 1` good ". For the year ended September 30, 1963, UNITED SERVICE TRANSPORT reported a fall in earnings on the Ordinary shares for the second year running, although the dron in this instance was fractional-10.5% compared with 101% the previous year. In the year before that they amounted to 13.7%. The dividend, however, was held at 9%. The results for the year ended September 30, 1964, are expected in about a couple of months' time.
When last reporting, the cha-rman, Mr. N. Johnstone Dodd, did not make an assessment of prospects. The winter of 1963-64, however, was much kinder than during 1962-63 when the fog, snow and ice severely inhibited operations of the veh'cle fleet. All factors considered the market is hopeful that some imnrovement was effected. These 5s. Ordinary shares are at nresent around 5s. 3d. This compares with a March. 1964, price of
6s. 3d. Martin Younger