MONEY MATTERS

25th September 1964, Page 136

25th September 1964

Page 136

Page 136, 25th September 1964 — MONEY MATTERS

Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Atkinson Lorries Outlook

IN his annual review the chairman of ATKINSON LORRIES (HOLDINGS)—Mr. W. G. Allen—states that at the moment the future of the group can still be viewed with "unqualified optimism if the order book is to be our criterion ". And this comment just about sets the theme for Mr. Allen's report. This presupposes, he adds, the necessity for planned and essential development on the additional site near Preston which was acquired some years ago. But the effect of possible political influences that could affect the operation must be awaited before going ahead with the operation.

The order book, which showed an improving trend at the time of the last accounts, maintained that improvement, Mr. Allen states. He adds that in fact the rate was increased throughout the year to the point "almost of embarrassment ' . At the moment these 2s. Ordinary shares are priced around 6s. 3d. to yield a useful 4% based on the latest 121% dividend covered rather more than two and a half times.

Two sets of results due out early next year, which I forecast are going to be awaited with keen interest, are those of MANN EGERTONS AND BRAID GROUP. The market expects both will show further progress. For the year ended September 30, 1963, Mann Egerton produced pre-tax profits of £388,458 compared with £311,425 the previous year, and out of these higher earnings the dividend was lifted five points to 30%. These results constituted a record for the company. The board of management is clearly set on further expanding the group's interests—in November, 1963, Sanderson and Holmes, who holds important agencies in Derby and Leicester, were acquired. There was a scrip issue on the basis of one for one proposed with the last results. At around their, present price of 14s. these Ss. Ordinary shares yield 51-%, based on the estimated dividend of 15% (adjusted for scrip issue). But my hunch is that the dividend may well be raised again—for the third year in succession.

For the year ended September 30, 1963, Braid Group's pre-tax profits soared to £228,938 from £131,084 the previous year. The dividend was lifted to 20%—up 5% —out of earnings of around 461%. Reporting to holders on the year's activities the chairman stated his belief that the prospects for the current trading year. were " good ". Keen competition was pressing on profit margins, he said, but relief should be obtained in some measure as the result of centralizing commercial vehicle body production

into one unit. Martin Younger r20