MONEY MATTERS Good Profits Reported
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illE well-known vehicle operating companies reported their results for 1963 this week; the figures were satisfactory and well up to market expectations.
Shareholders of LANCASHIRE UNITED TRANSPORT should be well pleased with their board's management of affairs during last year. Net profit increased to 1124,914 from 1118,689 the previous year. Out of these higher earnings a final dividend of 11% is now proposed, which makes the year's total 15%, or 21% more than for 1962. The group paid 121% for each of the years 1959 to 1962 inclusive. The decision to raise it to 15% is interpreted by the mattet as board-room confidence about the outlook—that the directors feel confident it can be maintained. The chairman's statement is awaited with keen interest.
In a reference to the WEST RIDING AUTOMOBILE company recently I stated that an unchanged final dividend of 6% was expected by Um market. This has now been announced, to make an unaltered total of 10% for the year and for the fifth successive year. A pleasing feature of the results, however, is a smart jump in net revenue after provision for tax from 1255,202 in 1962 to 1286,513. Thus the chairman's comment a year ago that the then current trend seemed to indicate better loadings appears to have been applicable to the rest of the year as well. Industry in the West Riding is at present booming; it will be interesting indeed to read what Sir Ronald Leon has to say about the prospects for the current year of the W.R.A. group.
Net profit of RHONDDA TRANSPORT for 1963 jumped to 142,875 from 131,520 the previous year, but the proposed final dividend of 51% makes the year's total distribution unchanged at 71% tax free.
• It was reported by W. WATSON AND CO. (Liverpoop—commercial vehicle distributors—that the results for the first three months of the present trading year showed an improvement on those for the same period a year ago. Financed by the proceeds of the sale of other properties there has been substantial capital expenditure on new buildings at Chester.
Buying of the shares believed in anticipation of the interim dividend expected in the next few weeks has lifted the price of DENNIS BROTHERS to around 22s. 9d. Reporting to shareholders at the end of last year the chairman, Mr. David L Grimes, spoke of an "encouraging upward tendency" in orders, Encouraged by the 110,008 improvement in trading profit at 1215,421 and, no doubt, the brighter prospects, the dividend in respect of the year ending September 30 last was lifted to 12% from 10% previously. The market would never be surprised by a bid for this specialist company. But this aspect apart, the shares seem worth holding at around their present price. Martin Younger