MONEY MATTERS
Page 72
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Tartan Arrow Make Expected Progress
MHEN the Ordinary shares of TARTAN ARROW VV SERVICE came to the stock market in February, 1964, the City had no doubts about the company producing a set of results for the then current year that would enable the forecast dividend of 30% to be paid. In point of fact the payment now recommended by the directors is 5 points better than the estimate at 35%. Thk payment will come out of group pre-tax profits amounting ta £114,451, which compare with the forecast of not less than £90,000.
Under an agreement (minimum 20 years) which the board has reached with British Railways, the company's London-Scotland traffic will be conveyed by special train (exclusive to Tartan Arrow). Road-rail depots (automated) will be erected in London and Glasgow.
The directors of Tartan Arrow feel confident that this arrangement will "prove extremely beneficial" in the longer-term, but shareholders are warned not to expect results too early as it will naturally take time for the anticipated benefits to accrue. The fact that these 2s. Ordinary shares (quoted on the Scottish Stock Exchange) have been an easier market recently at around 22s. 6d. has been caused by, it is felt, the steep rise in the rate of duty on goods vehicles imposed by the Budget.
There was good news for the shareholders of NORTHERN COMMERCIAL VEHICLES. For the year ended October 31 last, pre-tax profits jumped to £167.279 from £128,350 the previous year. The board recommends a dividend of 7d. per 4s. Ordinary share compared with 5d. paid in respect of the previous trading year. The current year has started well; the chairman, Mr. B. Townley, comments that sales during the firci four months show a "very encouraging increase ". These shares changed hands recently at 12s, 9d.
United Carriers Profits Up UNITED CARRIERS announced that group pre-tax profits for the year ended January 31 last amounted to 1235.640. This total compares with £180.893 the previous year and includes a contribution (for 18 months) from a recently-added subsidiary. The dividend is being stepped up by as much as 10% to 58% (payable on a larger capital) by a final distribution of 40%. Nevertheless, the market was disappointed, appearing to pay more attention to the-as one broker termed it-" steady" profits rise than to the sharp increase in the distribution. After being up at around 18s. 9d. they now stand at 17s. But I would advise holders to hold, because this management is expansionistminded and further acquisitions are quite a possibility. Well 'done. DUNLOP. During 1964 group sales soared to £316 m.-up £33 m.-while pre-tax profits improved to £18-86 m. from 115-75 m. the year before. Out of these higher earnings the hoard recommends a final dividend of Is. Id. per 10s. Ordinary share to make a total of Is. 7d. for the year-an increase of 21d. per share compared with 1963. At around their present price of 29s. 6d., to yield 5.1% based on the latest dividend, these shares are a first-class holding.
Martin Younger