MONEY MATTERS by Martin Younger
Page 76
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Fraser Westfield shareholders take a cut
DISAPPOINTING news for the shareholders of Fraser Westfield Motor Group—for the year that ended on March 31 the directors recommend a final dividend of 5 per cent. This makes the year's total 71 per cent, or 21 per cent less than was paid in respect of the previous year. The payment comes out of sharply lower pre-tax profits—£146,917 compared with £221,301 the year before. Turnover declined to £7.7 million from £8.0 million in respect of the 1965 /66 trading period.
And it was a similar story that came from the boardroom of Westover Garage. For the trading period that will end on October 31 the chairman, Mr. R. G. Hooker, has forecast that a total dividend for the year of not less than 15 per cent will be paid. But this rate would fall short of the distribution made in respect of the 1965 /66 trading period by as much as 71 per cent. Trading profits during the first six months of the current year declined sharply to £58,242. For the same period a year ago they amounted to £102,827. Mr. Hooker explains that the set-back is entirely due
to the recession in the motor trade. Because the effects of the relaxation in h.p. regulations are not yet apparent he finds it difficult to make forecasts of what the current full year's profits are likely to be. But there is no half-way-stage dividend, though this is because the board has decided to revert to a single-paymentfor-the-year system. To me, and many more in the market, this decision is to be regretted.
Since the preliminary results were reported about a month ago the 2s. Ordinary shares of George Ewer have been an easier market, losing a few pence at 3s. 3d. This can be accounted for by investor-doubts as to whether the lower dividend will be maintained with a full tax charge, ex investment allowances. But chairman George Ewer is hopeful of "returning to a progressive dividend policy at an early date". I would back this; I feel the present price may be the right one to step-in, taking the longer-term view.