r -NI ON EY MATTERS ---- R. B. Massey pays 15 per cent
Page 65
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ALTHOUGH the gross profits for 1965 just reported by
ROBERT B. MASSEY proved disappointing, the directors recommend a final dividend of 10% to make a total of 15% for the year, as forecast. Pre-tax profits last year amounted to almost £5,000 below the 1964 total, but thanks to a lower tax charge the net balance was actually higher—£85,807 compared with £70.399.
The news gave no joy to the price of these 5s. Ordinary shares. On several occasions they have received favourable mention in these notes. At the moment they stand at around 10s. 7-1c1. to yield an above-average 7%. Taking account of the quality of the management and the group's record to date, I should by no means encourage a holder to sell.
I HENLY'S board is maintaining the interim dividend at 74-%
in respect of the year that will end on August 31 next. The total III distribution for the 1964/5 trading period was 25%. The new Ichairman—Mr. A. G. White—told fellow members at the annual meeting that during the final four months of 1965 it was found I "impossible to match the high figures for the same period the Iprevious year".
Mr. White was able to add, however, there were signs that present trading was approaching the level of this period of time a year ago, but unfortunately the fall in profits during the first months of the current year had not yet been made good. The interim statement is expected to be put out towards the end of May. Meantime, these 4s. Ordinary shares have been a firmer market in recent days. At the moment the price is 13s. to yield 71% based on the latest dividend.
In order to take advantage of the provisions of the 1965 Finance Act the directors of DUNLOP RUBBER CO. contemplate paying a second interim dividend before April 5 this year. A first interim of 8d. per share has already been paid. This was 3d. more than was paid as an interim the previous year.
The board has made it known, however, that it does not envisage paying more than the 1s. 7d. per share paid the previous year. At around their present price of 30s. 6d. these 10s. units yield 51%. In my opinion this valuation looks reasonable.
Martin Younger