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"There are great opportunities. . . "
Page 23
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The Chairnian of Transport Development Group reports on 1963 The year has resulted in a profit before tax of £2,768,600, an increase of £510,800 over 1962, has seen the acquisition of new companies and has brought the Group to the beginning of an important stage in its growth. A final dividend on the Ordinary Shares is recommended of 9 per cent making a total for the year of 13 per cent. The equivalent for 1962 was 10 per cent.
As in the past four years it is proposed to recommend to shareholders the capitalisation of part of the company's reserves and the issue to Ordinary shareholders of one new Ordinary share for every four Ordinary shares held; such shares, will not rank for any, final dividend for 1963.
Trading
The Group comprises some seventy separate trading companies, each selfcontained and maintaining its own tradition of service and loyalties. The subsidiaries between them provide the whole range of goods transport and storage services. Of these the most competitive has been that of long distance haulage. The Continental services once again produced a substantial increase in traffic and the Group remains pre-eminent in this field. Transport depots at, Barking, Warrington and Hatfield were completed during the year, as also was an office building and road terminal at Newcastle. The warehouses built last year quickly filled and we continue with our policy of selling uneconomic warehouses and cold stores and replacing them by modern buildings.
The flow of companies wishing to be acquired by the Group continues unabated and in terms of number the year was a record with thirty companies acquired.
Future Development
In Europe we have incorporated in the Netherlands, in conjunction with our associates Thomsen's Verenigde Bedrijven NV of Rotterdam, a new holding company which has the formidable title of Europa Transport Ontwikkelings Maatschappij ETO1vINV more conveniently referred to as ETOM. Sixty per cent of the shares of this company are owned by Transport Development and it is thus a Group subsidiary. To the company is being transferred the share capital of I. Leftley Ltd., the Group subsidiary primarily responsible for Continental services, and the share capital of H. W. Konig & Co., the subsidiary in the Netherlands of Thomsen's Verenigde Bedrijven which, for the past seven years, has worked so effectively in partnership with Leftley by conveying its trailers to the farthest corners of Europe. ETOM will remain a holding company and it is the intention that it shall undertake in Western Europe what Transport Development undertakes in the United Kingdom. The possibilities are immense and although still in their early stages plans for expansion are under way.
The Group has also made a provisional offer for Cargo Distributors Ltd., the parent of some twenty Australian companies providing transport and storage services throughout that vast continent, operating a fleet of more than 1,000 vehicles and having warehouses and railhead depots in every town and city of consequence. There are great opportunities for development in the expanding economy of Australia and I hope that by the time I report on the half-year results, the acquisition will have been satisfactorily completed.
At home, talks with British Railways are continuing satisfactorily, with a ' view to full use of the rail track where this offers fast, efficient and economical movement of goods, leaving all terminal services to be performed by Group haulage undertakings. Given competitive service and charges long distance traffic will be passed by our subsidiaries to British Railways without any other compulsion than common-sense.
Outlook for 1964
The year has begun well. In the mild conditions which have prevailed it is not difficult to exceed profits made during the ice and snow of 1963, but beyond this there has been a surge of activity which it is 'to be hoped any damping down of the economy will not diminish. On its initial showing the year 1964 will be good.