MONEY MATTERS
Page 76
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United Transport• Report Increased Profits
'rEIE interim report (six months ago) put out by I UNITED TRANSPORT indicated that the results for the full year would be good. Indeed they are. Group net profit for 1964 jumped to £1,754,416 from £1,352,149 the previous year. And this is after meeting a heavier tax charge-41.3m. compared with £lim. in 1963. Out of these higher earnings the directors recommend a final dividend of 9% (the forecast rate) which maintains the total at 15% on a capital made larger by a one-for-four scrip issue. Thus theN, is an effective increase of 3% for the year. This latest dividend is almost four times covered by earnings.
One heard a little disappointment in the market that a larger distribution had not been made and it may well have had something to do with the fact that the price of these 5s. Ordinary shares was unaltered at 18s. following the announcement. Nevertheless, my own view is they are well worth retaining and should do well for holders over the next few years. The management is good.
. . . and so do BET For the year ended March 31 last, group profits of BRITISH ELECTRIC TRACTION improved to £8,502,694 from £7,973,902 the previous year. The proposed final dividend of 37% maintains the year's total at 621%. It is pointed out by the directors that this proposed final dividend, if followed by an unchanged interim payment in respect of 1965-6 could, under the provisions of the latest Finance Bill, "involve the company in the payment of a penalty ". The amount of profits earned during the current year will, the statement adds, determine whether such a penalty will be payable.
A little disappointment that the dividend was not lifted caused a fall of about Is. in the price of these A Deferred shares; they are currently priced at 47s. 3d. ex-dividend, at which they yield 61% based on the latest dividend. This makes them only fractionally above their 1965 " low " point of 47s. lid.
The directors of UNITED SERVICE TRANSPORT state that maintenance of the 2% interim dividend must not be taken as an indication that the final payment will again be 3.1%. During the half-year goods side showed improvement, but results were adversely affected by reduced passenger earnings.