MONEY MATTERS
Page 73
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Setback for Dennis Bros.
DISAPPOINTING news from DENNIS BROTHERS. The company announced that pre-tax profits for the year to end-September last nose-dived to £69,500 from £160,464 the previous year. And the latest figures had the benefit of seven months' profit from the Mercury companies. No reason for the slump in profits is given, a fact which makes the annual accounts, due shortly, all the more eagerly awaited.
Despite this set-back, however, the proposed final dividend of 7% maintains the year's total at 12%. The cost of reorganization may well have inhibited profits. The major portion of this reorganization, however, is believed to have been completed. With the order book in good shape the outlook does in fact look brighter. Meanwhile, these 10s. Ordinary shares are priced at around 215., at which they yield almost 51% on the latest payment. They fell to around 19s. 6d. immediately after the announcement.
Reviewing a year which saw net profit leap to 195,554 from £69,827 the previous year the chairman of BARTON TRANSPORT—Mr. T. A. Barton—states that 25 new coaches were purchased during the year and 19 coaches and 6 double-deckers were withdrawn. "The passenger fleet accordingly remainid unchanged at the end of the year-317 vehicles, comprising 181 coaches and 136 double-deckers ", he adds. The number of goods vehicles remained at 15.
For the year to September 30 last the net profit of EAST KENT ROAD CAR COMPANY improved to £170,073 from £152,186 the previous year. Out of these higher earnings the directors recommend a dividend of 10% or 11% more than was paid the year before.
In April last the directors of PLAKTONS (SCARBOROUGH) expressed their anticipation that profits for the year that ended on August 31 last would be higher than those of the year before and that there were "good " prospects of a larger final distribution. Both forecasts have duly materialized. In fact profits jumped smartly to £272,055 from £161,587, out of which there comes a proposal to pay a final dividend of 17i% (Hi% last year) to make the year's total 25% against 19% in respect of 1962-63. Not unnaturally the news made these shares a firm market; currently they are around 22s. 3d. (their 1964 " high " point to date is 22s, 6d.), at which they yield 51% on the latest dividend.
"So far as the current year is concerned, the outlook is somewhat patchy ", states Lord Routes in his annual review to shareholders of ROOTES MOTORS. After stating his confidence that the development with the Chrysler Corporation will greatly strengthen the group's position and prospects at home and overseas, Lord Routes adds that it is the intention that Rootes Motors will acquire Chrysler's U.K. vehicle interests, i.e., Dodge Bros. (Britain) Ltd. and Chrysler Motors Ltd.
Martin Younger