MONEY MATTERS Braid Group's Good Prospects
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BRAID GROUP'S prospects for the current year are good, states the chairman in his annual review to shareholders. His hopes of being able to put "a good result" before members a year hence are strengthened by the fact that turnover and profits for the first three months of the year are in excess of those for the same period a year ago.
Much, of course, will depend, as he rightly points out, upon the continuance of buoyant sales and deliveries. He does, however, see a material cloud on the horizon— that is, "the inadequacy of the country's roads to deal with our ever-increasing volume of traffic ". Taking account of the bright outlook for the industry these is. shares are regarded as an attractive purchase at their present price or 3s. 3d. to yield 6i% on the latest dividend (20%) covered 21 times.
The board of TRANSPORT DEVELOPMENT GROUP is due to meet on March 5 when it is expected that the item "final dividend" will be on the agenda. A year ago the dividend was held at 121% on the capital increased by the scrip issue made in April, 1962. In addition to this latest payment there was a welcome, though unexpected, scrip issue of 1 for 4.
Reporting to holders a year ago, the chairman, Mr. P. S. Hemnan, stated that revenues and profits during the current year were then running in excess of those during the same period the previous year; the board expected this satisfactory position to continue.
The market is hopeful that a repeat final payment of 81% (the interim was held at 4% on the larger capital) will be forthcoming and would not be surprised at a modest increase. There has been activity in these shares at just under 14s. recently. Interest may well increase as the date of the board meeting approaches.
Remembering the chairman's comment made in his annual review last April that results for 1963 were running behind those of the previous year. shareholders of OSWALD TILLOTSON will be awaiting the forthcoming announcement of the full year's results with a degree of caution. The board Is due to meet on February 28. For the year ending December 31, 1962, trading profit slumped to £81,659 from 1123,031 the previous year, this despite turnover being the highest in the history of the company. The nigger in the woodpile, the chairman stated, was the fact that profit margins on commercial vehicles were substantially reduced as a result of an unexpected fall-off in national demand; competition was thus more fierce and because it was not possible to reduce costs, profits suffered in consequence.
On a brighter note, however, Mr. Holdworth reported that plans to open new depots at Dundee and Manchester had been put into effect and an increase in turnover should be shown in the 1963 accounts. Although shortearned, a dividend of 10 per cent was paid. At the time the market interpreted this as boardroom confidence in the outlook. The return to a level of profitability more in line with that of 1960, when earnings were more than 60 per cent, may be some way off, but the more favourable trading climate of the past year should have enabled some progress to have been made. Meanwhile, the price of these 3s. shares is quietly steady around 3s. 6d.
Martin Younger