MONEY MATTERS
Page 79
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Atkinson Lorries' Potential
IN his latest annual report to shareholders the chairman of ATKINSON LORRIES refers optimistically to the company's potential. The world market for high-quality specialist vehicles such as are made by the company would seem to be great, he states. He adds that the board's thinking and planning is based on this assumption. But he rightly points out that any expansion will need money, materials and men. Also, both those employed by the group and those who provide the capital need a reasonable reward after tax. At their present price of 4s. 6d. these 2s. Ordinary shares yield 54% based on the latest 124% dividend. In my opinion they are a sound holding.
Certain activities of the LEP GROUP suffered a slight set-back during the first four months of the current year. Giving this news in his latest annual review, the chairman, Mr. R. Leeper, adds that despite this, overall estimated results of trading were a shade better. But he warns that if the general decline in world trade forecast for the autumn materializes the group "will have difficulty in maintaining the present trend".
Mr. Leeper points out that despite the good trade figures for July the group encountered a "definite falling-off" in exports, particularly so in the case of those to the Continent of Europe. The latest dividend of 23% enjoyed well above four-fold cover by earnings, thus it looks safe enough in respect of the current year despite the trading difficulties. At their present price of around 135s. the yield is the below-average 3l,%, which would seem to indicate the market's expectancy of continued growth.
The results of the current year's working of BARTON TRANSPORT are not due for a few weeks yet. Nevertheless, I shall await them with growing interest. A year ago pre-tax protit jumped to 1148,958 from £110,817 the previous year. Out of these higher earnings the directors lifted the dividend to 84% tax free—a rise of 24 points above the level of distribution made the year before. I am looking for a further set of good figures from this well-managed company.
Martin Younger