Two promising reports
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AS Pointed out in these notes from time to time stock markets
are largely occupied in assessing what is to come and taking note of what has gone. That being so. every piece of news about prospects is eagerly scanned, not least the chairman's comments about the outlook.
Shareholders in two companies— FRASER VVESTFIELD MOTOR GROUP and GI LTSPUR INVESTMENTS should find the latest news under this heading, given by their respective chairmen, satisfactory.
The chairman of Fraser Westfield. Mr. K. D, Fraser, stated that the results of the first three months of the current trading year were reasonably good. He is confident about the group's longterm prospects. He warns, however, that until the full extent of the effects of the latest Government measures become more clear he is unable to say how far profits will suffer in consequence in the near-term.
Rising costs are being taken care of, wherever possible, by raising turnover and by modernizing techniques and improving efficiency. At around their present price of 7s. 6d. these 5s. Ordinary shares yield 6% based on the latest 10% dividend. They are quoted on the Scottish Stock Exchange.
Contrary to the likely experience of many companies liable to pay the "jobs tax", the directors of Giltspur Investments feel that the profits growth which the group has achieved during the past six years "will not be interrupted" by this tax. But the chairman, Mr. M. Joseph, strikes the warning that expected better figures are dependent upon there being no further deterioration in the British economy as a whole.
A breakdown of last year's profits of the group show that 47% were accounted for by car and commercial vehicle sales, while 33% stemmed from transport, removals, storage, shipping and so on. Commercial bodybuilding and the like accounted for 7%. As previously stated the total dividend for the year that ended on March 31 last was 30%, or 24-% more than was paid in respect of the previous year. Provided there is no further UK economic deterioration I shall be surprised if a further rise is not forthcoming in respect of the current year.
Martin Younger