NEC shares double
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NATIONAL FREIGHT Consortium ordinary shares have been revalued again, and are now worth twice their original value. The enterprise has made anothe pre-tax profit, and its dividends are running ahead of plan.
NFC made a pre-tax profit of £11.4m in its first 24 weeks of trading (to August 7), and a £4.7m profit after interest and tax, but before extraordinary. items.
The A ordinary shares, which originally were valued at £1 each, and which were revalued after the first quarter to £1.65 each (CM, July 17), have been revalued at £2 in time for the next NFC shares dealing day on November 12. That price will remain in force until the next revaluation early next year. The £11.4m pre-tax trading profit takes account of much reduced redundancy costs, down to £1.3m, and £5m profit earned from the sale of surplus property assets, a strong element of the NFC's new policy.
Reduced interest rates are iielping the Consortium clear its substantial debts; £6.4m interest charges were paid in the second quarter. It is anticipated that further reductions in interest rates, and continued property rationalisation will lead to a further improvement in trading.
After the payment of a second dividend of 4.5p per A and B ordinary share is paid, and advance corporation tax is taken into account, NFC will retain £3.2m profit. The earnings per share on a net basis are 62p for the period.
So far this year, NFC has declared dividends of 9p per share, against a forecast of 7.5p for the first eight months.