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Alexanders beat forecast

4th March 1966, Page 70
4th March 1966
Page 70
Page 70, 4th March 1966 — Alexanders beat forecast
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Which of the following most accurately describes the problem?

THE directors of ALEXANDERS HOLDINGS—largest group of main Ford dealers in Scotland propose to pay a final dividend of 54% for 1965. Last December the official forecast was a payment of not less than 5%. This latest distribution makes a total of 121% for the year.

Chairman Mr. C. Richards points out that this distribution very satisfactorily exceeds the original forecast of 8%". The payment comes out of pre-tax profits of £90,577; total for the previous year was £73,480.

Following the news, these 'Is. Ordinary shares were—not surprisingly—a firmer market. At their present price of 2s. 3d. they yield about 5+% based on the latest dividend.

Although this price may be high enough for the time being, they appeal to me as a worthwhile long-term holding.

Shareholders unfailingly hope to get at least one extra encouraging little tit-bit about the future when the chairman addressesthe annual get-together. Sir William Black faithfully obliged at the recent annual meeting of the LEYLAND MOTOR CORPORATION. He told members that a 140-acre site had been acquired on which to build a new factory to increase production of commercial vehicles. To destroy recent rumours Sir William commented that no "discussions were going on between this board and BMC".

Now to the number one tit-bit: "We are in a position to move forward in strength", he stated. "We are continuing our determined attack on world markets and are gaining a new foothold wherever opportunity presents itself."

No wonder the market realized how unrealistic was the recent price of under 50s. per share and did something about it. They now stand at around 52s. 6d. I am deliberately forgetting about the present yield of 4+% and in my view they constitute a really firstclass holding for the more patient investor.

If profit estimates are ach eyed the directors of BURNHOLME AND FORDER intend to declare a final dividend of not less than 74%. With the interim dividend of 5% already paid this would make a total of 12+% for the year. The board estimates that pre-tax profits for the year that will end on August 31 next of H. Nuttall and Son and Crow's Transport (rece-itly acquired) should be at an annual rate of around £103,000.

Martin Younger


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