MONEY MATTERS Good Company News Stimulates the Market A CONTINUED Bow
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of good company news has been the principal stimulant behind the buying which has made for the brighter tone of equity markets in recent days. And the commercial motor and kindred section has not Lacked its share of this good news.
For example the results for the year which ended on March 31 last announced by BRITISH ELECTRIC TRACTION pleased the market, as indeed they should. Pre-tax profits soared to 17,973,902 from £7,014,147 the previous year. Holders of the Deferred and "A" Deferred Ordinary capital are to receive direct benefit front these higher earnings by way of an increased dividend. The proposed final payment of 371% makes the total for the year 621% compared with 55% paid in respect of the trading year 1962/63. The annual meeting, which is to be held on July 23, should be a joyful occasion.
There was good news too for the shareholders of E.R.F. (HOLDINGS). For the year to March 31 last net profits jumped to £133,299 from E92,367 the previous year. The directors recommend a dividend of 23% or 3% more titan was paid in respect of the year to end March, 1963. The market bad expected 1963 to be a better year for this well-known manufacturer of heavy Commercial vehicles: given a continua
lion of existing economic conditions the progress is expected to continue during the current trading year.
The LEYLAND MOTOR CORPORATION is rarely out of the financial headlines for long these days such is the progress of this group. As expected the board has just announced an increased interim dividend in respect of the year which will terminate on September 30 next; 6,1% against 5% a year ago. In addition a scrip issue on the basis of three-for-two is also proposed and on the capital as it will then be increased a final dividend of 71% is forecast. This would make the year's total equivalent payment (on the existing capital) 25% compared with the 221% rate paid in respect of the trading year 1962/63. And that is not all the good news; chairman Sir William Black announces that trading conditions remain "buoyant ". Production and orders on the books, covering both the U.K. and overseas, are substantially in excess of those at this time last year. There had been strong buying of these shares in anticipation of the interim statement; this continued after it was made. At around their present price of 117s. I regard these shares as a most attractive purchase.
Martin Younger