MONEY MATTERS
Page 68
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Good Cheer from ERF at Half-way Stage
QHAREHOLDERS of ERF HOLDINGS have reason si to be delighted with the latest half-way-stage report put out by the directors of their company. During the first half of the current trading year pre-tax profits soared 35% to £164,000 compared with the total for the same period a year ago. Out of these increased earnings the board has lifted the interim dividend to 121% from the 81% paid previously.
During the 1964-5 trading period this leading group found its progress severely inhibited by somewhat erratic supplies of components. But meanwhile the range of suppliers of these necessities has been broadened. Undoubtedly this action has been a potent factor behind the now-reported profits increase. And there is splendid news about the outlook. The latest statement adds that for the full year profits should " easily " surpass those of a year ago (267,000).
It is understood that the order book is at a record level. As profits are usually higher during the year's second half than during the first the market is talking in terms of a possible 20-22% total dividend for the year. This would compare with 15.8% last time.
A month ago BARR and WALLACE ARNOLD TRUST reported that profits for the first seven months of the current trading year amounted to £185,289 (estimated) against £98,945 for the same period the previous year. Larger profits for the full year were forecast. This group of coach operators has now declared an interim dividend of 10%. For 1964 there was no half-way-stage payment; the year's distribution was 12%.
For the year that ended on September 30 last the net profit of EAST KENT ROAD CAR CO. showed a slight fall compared with the total for the year before--£161,838 against £170,073. Nevertheless, the directors are maintaining the dividend for the year at 10%.
Shareholders of MANCHESTER GARAGES are informed that despite rising costs, " extreme " competition and the credit squeeze, turnover has remained steady. Although the directors warn that with corporation tax to reckon with maintenance of last year's total dividend of 45% " should not be assumed ", they are maintaining the interim dividend at 221%.
Martin Younger