Some interesting results
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RESULTS of the latest financial year were announced by some well-known companies during the past week. They were somewhat mixed in character.
During 1965 the gross income of WEST RIDING AUTOMOBILE Co. improved to £2.53 m. from £2.44 m, the previous year. There was a commendable rise in net profit to £125.139 from £70,923. The proposed final dividend of 6% makes an unchanged total for the year of 10%. At around their present price of 18s. ex-dividend. these £1 ordinary shares yield 11%.
The directors of POTTERIES MOTOR TRACTION propose to pay a final dividend of 4%. This makes the total distribution for last year 7%, or 14% more than the equivalent payment in respect of 1964. This increased payment comes out of lower earnings. Net profits declined to £111,437 from £195,191--a balance that was arrived at after allowing for a reduced tax charge and corporation tax at a level of 35%. The Ordinary stock units of this company (which is controlled by British Electric Traction Co.) are quoted on the Birmingham Stock Exchange. The latest price is 19s.
The shareholders of PLAXTONS (SCARBOROUGH) must surely be pleased with the interim statement. The fact that the
interim dividend is raised to 12+% is for tax reasons (it compares with the equivalent of 623% a year ago). But the directors forecast a total payment for the year of at least 25%. Last year's total distribution was equal to 22.2%.
In its latest statement the board reports that turnover of the coach department during the six months that ended on February 28 increased by approximately one-fifth compared with the same period a year ago. The order book is full, which will ensure maintenance of increased output level during the year's second half. Costs continue to rise, but the directors expect that profits will be maintained at the 1964-5 level.
That these 5s. Ordinary shares are currently standing only a few pence below their 1965-6 peak price of 24s. 6d., at which they yield slightly more than 5% on the forecast dividend, is hardly surprising. When present electoral influences upon the market have been reduced I expect to see interest in these shares renewed.
A cash offer of 6s. 6d. per 5s. unit has been received by UNITED SERVICE TRANSPORT, the board announced. The offer is worth almost £600,000.
Martin Younger