S.M.T. Has Another Good Year
Page 16
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N" profits of the Scottish Motor Traction Co., Ltd., for the year ended October 31. 1941, amounted to 2372,190, against £381,593 for the preceding year. The directors again recommend a dividend on the ordinary stock of 10 per cent., tax free, for the year. They also propose to reduce the capital by 5s. per 21 unit of ordinary stock ; some months will elapse before this proposal becomes effective.
As the ordinary capital amounts to £1,341,305, the amount to be returned will be about £335,326, leaving the nominal value of the ordinary stock at' slightly over 21,000,000. The repayment will be specially welcome to stockholders, including, to a considerable extent, the L.M.S. and L.N.E. Railways, for the reasons that, in the S.M.T. directors' opinion, the scheme will cause no diminution in earning power and the money to be returned will not be subject to income tax.
In view of increased taxation and other high costs, satisfaction will be caused by the past year's net profit. For the fourth year in succession the usual dividend of 10 per cent. is free of tax.