MONEY MATTERS by Martin Younger
Page 92
If you've noticed an error in this article please click here to report it so we can fix it.
Ribble Motor Services pre-tax profits are £107,420 down
THE pre-tax profit of Ribble Motor Services amounted to £680,520 in the year ended March 31. This compared with £787,940 in the previous year.
After a considerably reduced tax charge—£163,023 against £214,236—the net surplus came out at £517,497 compared with £573,704 previously. Nevertheless, the proposed final dividend of 8+ per cent maintains the year's total distribution at 12+ per cent.
The results for the year that ended on March 31 reported by Hargreaves Group pleased the market; the price of these shares was marked-up sharply by is 3d. to 28s. 6d. immediately after the announcement. Though falling short of the splendid figures achieved for the year ended March 1965, a solid step forward was taken. Pre-tax profit improved to £686,146 from £562,791 in respect of the previous year. The proposed final dividend of is. per share holds the total for the year at 2s. per share. This repeated 10 per cent payment would seem to be covered by earnings amounting to a little more than 12 per cent. This well-known, well-managed, Yorkshire-based group is substantially diversified: haulage, coal and fertilizers are among its activities. A nar ago a 50 per cent stake in the fertilizer interest was secured by Imperial Chemical Industries. Though competition abounds in fertilizers this partnership should prove beneficial. At their present price the yield on these shares is about 7+ per cent. Though I regard them as a mediumto longer-term growth stock they are probably high enough for the time being.
LEP Group shares were lowered 2s. 6d. (to 157s. 6d.) but quickly regained the loss. The 1966 results are expected in a few weeks. 1965 earnings dropped to 92 per cent from 107 per cent the previous year, but still provided excellent cover for the maintained 23 per cent dividend. In view of the credit squeeze, the prices freeze and jobs tax I do not expect to see a breathtaking rise in profits. But the dividend looks rock-safe. In my view the shares are worth keeping to await a renewal of growth.