MONEY MATTERS
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Giltspur Contim lake Progress
THE trading activities of GILTSPUR INVESTMENTS 1 are diversified. Among them are large stakes in the motor transport, distribution and coachbuilding fields. These include New England and General Trust Ltd. (controlling the Bullen group of companies-actively engaged in the transport and export packing fields) and Strachans Coachbuilders Ltd. The group became public as recently as 1960 and since then has made outstanding progress.
For the trading year 1960-61, earnings were a little more than 18%, out of which a dividend of 10% was paid. The following year, earnings (on a capital increased by acquisitions) jumped to 31% and the dividend was lifted to 171%, while for the trading year ending March 31, 1963, there was a further sizeable increase in earnings-to 4310/. Again the dividend was raised, this time by 21 points to 20%.
During the year 1962-63 the re-assessment of the company's investments-the shedding of the unsatisfactory ones and the strengthening of those displaying more promise-was a feature of the group's activities. For example because of highly competitive trading conditions
example, group's travel interests were sold; so was a retail furnishing subsidiary. The capital which these moves released was used to expand the motor division; the hiring out of commercial vehicle Beets proved to be a stabilizer to the vagaries of the distribution side of the business. The Bullen group was still in a state of development, with reorganization of the management structure taking place.
The results of G.I. for the year ending March 31 last are expected to be announced in about six weeks. The
market considers the group to be still in the early stages of its development; it looks for further progress having been made dur.ng the past year and is hopeful of another rise in the dividend. A year ago these 2s. shares were priced around 9s. 9d.; at the moment they are around 9s. 3d. There has been a moderate degree of buying interest in them recently and I shall be surprised indeed if this interest fails to gather momentum the nearer we get to the time of announcement of the 1963-64 results.
Another set of results due out around the same time— trailer makers R. A. DYSON—are also awaited with interest. For the year ending March 31, 1963, there was a drop in earnings of 0.8% to 23.7%, and for the second year running the dividend was reduced—on this occasion by 1% to 20%. Was a recovery achieved daring the year ending March last? A Liverpool stockbroker friend tells me that the possibility of a take-over has been a factor in helping to sustain the orice of these 5s. "A" shares. They are quoted only on the Liverpool Stock Exchange. At the moment they are around 11s. 6d., at which they yield £8 13s. ltd.% on the latest dividend.
The 1963 net profit of TRANSPORT GROUP (HOLDINGS) was 133,199 (and includes a loss of £22,136 incurred by a subsidiary which has recently been sold) against £39,907 the previous year. The dividend is being maintained at 15%. Quoted in London the price of these 2s. shares is at present about 4s. 3d.
Martin Younger