VIONEY MATTERS Tayforth's Excellent Results
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IN his annual review to shareholders a year ago the I chairman of TAYFORTH, Sir William S. Duthie, expressed his confidence that, given reasonable trading conditions, the results for the year to end-March, 1964, would show a further improvement. Sir William's confidence was fully justified because it has just been announced that group net profits improved to £286496 from £246,818 the previous year. Out of these higher earnings,the board recommend the payment of a final dividend of 10 per cent. This makes the year's total 15 per cent compared with 13f per cent paid in respect of the trading year 1962-63. Last September it was stated that it was the intention to extend and develop the trading links between the group and Coast Lines Ltd. which have been in existence for some time; Coast Lines acquired a holding of Tay forth Ordinary shares. Following the announcement of these latest highly satisfactory results there was quite a bit of activity in the shares up to 13s. 101d. When equity markets get really into their stride again I expect to see the price go higher.
The results of KIRKSTALL FORGE ENGINEERING for 1963 are expected in the next few weeks. What are they likely to be? In the review a year ago it was stated that although trading during the year just concluded had been difficult "customers' demands for axles during the next six months have increased substantially "; the directors were confident that sales during the first half of the year then current would be "appreciably higher ". The high level of output of commercial vehicles during the past year should have enabled this satisfactory state of trading to have been at least maintained. There has been a little interest in these shares recently at around 9s. 101d. This interest may well grow as we get nearer the time of the announcement.
For the year to March 31, 1963, investment income of BRITISH ELECTRIC TRACTION jumped to £5,862,511 from 15,773,556 the previous year, thus continuing a trend which had operated during each of the previous nine years. Working profit dipped to £2.96 million from £3•40 million the year before; the fact that Canadian Motorways sustained a heavy loss was a causal agency. This loss was partly caused by a protracted strike in the trucking industry which brought to a standstill the company's business in Quebec and Ontario provinces. About the group's outlook the board stated that the results for the first five months of the trading year to end-March, 1964, were better than those for the same period the previous year adding that "there is reason to believe that this improvement will continue ". Some of the bus operating subsidiaries have already announced better results for 1963 and the market is quite hopeful that the parent—B.E.T.—will do likewise.
Martin Younger