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Well done, Fodens
THE results for the year that ended on April 2 last reported by
FO D E NS got—and richly deserved—a big hand from the market. Consolidated pre-tax profits soared to £600.391 from £370,130 the previous year. Out of these increased earnings the directors recommend a final dividend of 101%. This makes the year's total 12-1-%, or 2-k% more than was paid in respect of the 1964-5 trading period.
This excellent news was reflected by a jump of 5s. 3d. in the price of these shares: they currently stand at a new peak for the year of 44s. 6d. After the warning about the possible impact upon profits of higher costs and lower margins made at the halfway stage, the latest figures are the more welcome—and commendable. Despite their sharp rise my view is that these shares should be held firmly.
Subject to there being no serious deterioration in the UK economy during the next few months the chairman of BRITISH ELECTRIC TRACTION CO.—Mr. John S. Wills—makes the forecast of a maintained 70% dividend in respect of the current year. But he warns that the year will be "far from easy": he expects to see some reduction in investment income.
Largely because of higher costs and reduced traffic as a result of Saturday strikes the bus subsidiaries operated at less profit last year. Mr. Wills believes the current year is unlikely to see easier trading conditions for the bus companies.
TATE OF LEEDS reported that pre-tax profits for the year that ended on January 31 last amounted to £104.953. compared with £133,114. The proposed dividend of 10% for the year compares with 121% paid in respect of the previous trading period.
And there was similar gloom from MANCHESTER GARAGES. The net profit for 1965 fell to £30,983 from £41,362 the previous year. The proposed final dividend of 17-1-% reduces the year's total from 45% to 40%. Taking account of the difficult trading conditions encountered the board considered that these results were satisfactory. But the market begged to differ: the price of these shares declined 41d. to 5s. on the news.
Martin Younger
LMM. MP MO MINN 111= NM MN MN MI I■