Midland Red hold interim
Page 74
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THE Birmingham and Midland Motor Omnibus Co. has announced an unchanged interim dividend of 2 per cent. The total distribution made in respect of the past full trading year was 51 per cent.
In an accompanying statement the directors comment that the results for the first eight months of the current trading year show an improvement upon those for the same period a year ago. Profits a year ago, it is pointed out, were lowered by a series of unofficial strikes, plus a delay in obtaining increased fares following a substantial rise in wages. Nevertheless, the board regards the current year's results as disappointing owing to a fall-off in the number of passengers carried, further tabour troubles and a severe shortage of operating staff.
Despite the adverse effects of the Government's deflationary measures the directors of Transport Group (Holdings) estimate that the profit for the current year should be not less than that achieved during 1965. For the six months to June 30 last consolidated profit amounted to £54,380, compared with £47,750 in respect of the same period the year before. After tax the net balance came out at £32,380 against £36,750 previously. The 1965 figures included a credit for investment allowance relief amounting to £8,440.
Via two subsidiaries—William Burgess (Bristol) and A. CulpinLovell's Shipping and Transport has a direct interest in road haulage. This well-known West of England group (the shares are currently quoted on the Bristol Stock Exchange at the lowered price of 22/-) is maintaining the interim dividend at 3 per cent, but with a warning that lower profits far the current year are indicated. The overall cost to the group of the seamen's strike was around £65,000, it is stated. Because of the possibility of "markedly lower" earnings the board further warns that any additional dividend payment made may not equal the second interim of 6 per cent paid in respect of 1965.
L Martin Younger