MONEY MATTERS
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Southd
its Are Up
AFTER a higher tax charge (U59,216 against £145,088 and a greater depreciation allowance (£343,22, against £326,262) SOUTHDOWN MOTOR SERVICE! announce that net profit for the year ending March 3 last improved to £325,614 from £270,457 the previou year. Out of these higher earnings the directors recom mend a final dividend of 31%, tax free, payable on capital increased by a three-for-five scrip issue mado earlier this year. With the interim dividend of 21%, tal free, previously paidthis makes a total for the yea equivalent to 5T,Ig%, which compares with the equivalen of 4-1-i% paid in respect of the year ending March 31 1962.
This group of companies, which operates omnibus ser vices between London and the South Coast, is owner jointly by B.E.T. Omnibus Services Ltd. and The Trans port Holding Co. These tl Ordinary Stock Units an quoted on the London Stock Exchange, their curren price being 2.8s.-30s.
UNITED SERVICE TRANSPORT announced tha the interim dividend in respect of the year endin) September 30 next is being maintained at 2%. "Wil a recovery from last year's profits set-back be effected?' is a question now being asked in the market. Becaus( of dense fog and snow and ice encountered in December 1962, the earnings of his group were adversely effected pre-tax profit for 1963 fell to £35,253 from £43,745 du previous year.
The chairman, Mr. N. Johnston Dodd, told share alders in his annual report that there had been heavy eliding maintenance costs. In addition, he said, there ad been increases in rating assessments "leading to envier charges in the future ". Although there have been mual drops in pre-tax profits since 1961 the dividend Lcord is good; 8%, 9% and 9% respectively. While Le market hopes to see the start, at least, of a profits imb-back to the £54,000 reported in respect of 1961 it mindful that operating costs may well remain heavy. repeat of the last year's final dividend of 7% seems
be the expectation of many in the City. Meantime, Le current price of these Sc. Ordinary Stock units (quoted it the London Stock Exchange) is around 6s. 6d., at hich price they were recently dealt in. Interest in them lay well be on the limited side until there are signs kat the profits trend is on the upward path.
What, asks a reader, is a Preference Share? In Lniority a Preference share (or stock unit) usually ranks ext after any Debenture Stock and immediately before le Ordinary shares (or stock) in securities issued by a rummy. They sometimes carry preferential rights in Le event of the comoany being wound up. Invariably Ley carry a fixed rate of interest (e.g. 5%)—bence the eseription "fixed interest share ". If they are cumulative tilure to make any half-yearly or yearly payment of ividend on them is in arrears until such time as the rnmany finds itself able to pay off these " missed " ayments.
Martin Younger