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A look ahead

5th August 1966, Page 67
5th August 1966
Page 67
Page 67, 5th August 1966 — A look ahead
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Which of the following most accurately describes the problem?

ANTICIPATION of what is to come occupies approximately

three-quarters of Stock Exchange time: what has gone before the other quarter. Therefore, a glance forward at what I feel are some interesting results to come may not be out of place.

For the year that ended on June 30, 1965, the trading profit of VICTORY TRANSPORT amounted to £94,870 and compared with the £81,890 the previous year. The dividend was lifted 2+% to 171%. This commendable rise in profitability compared with a rise of around 10% at the half-way stage.

The increased turnover reported showed no signs of tailing off. Indeed, it was announced that to cope with it a further 30.000 sq. ft. of warehouse had been provided. Plans were also in hand to modernize the present vehicles and increase the fleet, it was stated. During the first three months of the year that ended on June 30 last profits showed an increase over those for the same period the previous year. I look forward to a good set of results from this company.

A set of figures by PLAXTON'S (SCARBOROUGH) better than the previous year is now almost taken for granted by me market. For the year that ended on August 31, 1965, pre-tax profits increased by 37%. Earnings on the Ordinary shares amounted to 56% compared with 49% the previous year; the dividend was lifted to 25% from 181%.

The Panorama and Embassy models had proved popular to the point of demand more than matching supply; a record number of coaches was produced. The chairman, Mr. F. W. Plaxton, reported that the current year (that will end on August 31) had started with the order book full; indeed, there were production problems in coping with the demand. He expressed every confidence in the outlook for the company, and its progress.

Due principally to the present uncertain sluggish state of the market the price of these 5s. Ordinary shares has slipped back a little to around 25s. (they have been up to 28s. 9d. earlier this year). At this level they yield 5% based on the latest dividend. I concur the market's optimism that higher profits will be reported and a further rise in the distribution certainly would not surprise me. I regard these shares as a first-class holding.

Martin Younger.

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