MONEY MATTERS
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Manchester Gan
its' Issue
IN order to raise approximately £300,000 of additional 1 capital to finance further expansion the directors of MANCHESTER GARAGES—main Ford dealers for more than 40 years—propose to make a "rights" issue of Is. Ordinary shares. Details are now awaited. Meantime, in a notice sent to shareholders, the chairman, Mr. A. R. Jackson, states that projects already carried out should be invaluable profit contributors in future years. These projects include extensions at the Manchester headquarters, a larger programme of selffinanced hire-purchase and contract hire. The latest dividend of 45% was covered nearly twice by earnings.
It is now approaching two years (December, 1962) since the Is. Ordinary shares of PEPPERS MOTOR GROUP were introduced to the Birmingham Stock Exchange. They were placed at 2s. 101d per share; their current price is around 5s. and this rise in price appears to be perfectly justified.
For the year ending September 30, 1963, pre-tax profit came out at £83,721. This provided earnings on the Ordinary capital of 81%, out of which a dividend of 25% was paid. The forecast profit, incidentally, was 170,000 and the previous year's figure was 172,000. The 1962-63 figures are all the more impressive when account is taken of the severe weather at the beginning of 1963— vehicle sales were at a low ebb; virtually non-existent— and also losses stemming from the reduction in purchase tax had to be absorbed. During the year the Handy
commercial sales and service departments were transferred to new premises; this move should bring benefits.
The policy of this virile "with it" board of directors is clearly modernization and expansion. They have made it abundantly clear that they are in the market for new acquisitions that would increase the group's earning capacity.
The results for the year which will end on September 30, 1964, are expected to be announced towards the end of the year or early in 1965. I look to them being good. In his statement to shareholders almost a year ago the chairman said that vehicle sales during the first two months of the present trading year were up on those for the same period the previous year; prospects looked "very good ' , he added. The price of these shares has been no to around 5s. 6d. At their present price they yield a useful 5% based on the latest dividend. consider them to be an attractive purchase.
A reader asks if it is only possible to purchase a share through a broker who is a member of the stock exchange where the share is quoted. Not at all; a broker— member of any of the recognized stock exchanges—can do business for a client in any share quoted on any stock exchange provided, of course, there are shares available (in the case of a purchase) and the price is agreeable to the client.
Martin Younger.