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r---MONEY MATTERS•i•-••91 United Transport earns more

8th July 1966, Page 82
8th July 1966
Page 82
Page 82, 8th July 1966 — r---MONEY MATTERS•i•-••91 United Transport earns more
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Which of the following most accurately describes the problem?

GROUP pre-tax profits of UNITED TRANSPORT CO. for the year 1965 amounted to £3,284,542, which compared with £3,023,122 the previous year. This is an increase of 8.5%. In a trading era when the common cry is more turnover, less profit" these results can be rated quite good. Nevertheless, during the final three months the rise was at a slower pace. being only 5% compared with double that amount during the earlier period.

The proposed final dividend of 9% maintains the total for the year at 15%. It will be recalled at the time that the interim dividend was paid a capital distribution of 5% was made. which compared with 21% previously. At around their present price of 17s. these 5s Ordinary shares yield 4p/o based on the latest dividend.

The market had expected a profits set-back to be reported by WILLIAMS HUDSON for the trading year that ended on March 31 last. But the downturn is steeper than anticipated. Pre-tax profits slumped to £472,477 compared with £826,588 the previous year. This is a fall of more than 40%.

At the year's half-way stage it was known that the fall was of the order of 28%. Despite this setback the directors recommend (as forecast last November) a final dividend of 81-% to make the total for the year a maintained 14-1%.

Latest earnings indicate that this dividend is barely covered. There was a sharpish market reaction in the form of a drop of 9d. to 14s. 3d. in the price of these Ordinary shares of 5s. each. At this level they yield 5+% based on the latest distribution, which does not strike me as being an over-generous return.

The year that ended on March 31 last was a better one than previously for R. A. DYSON-trailer manufacturers and engineers. Net profit came out at £53,379 and compared with £27,836 the year before. As previously reported, the total dividend is increased 1% to 19%. The A shares are quoted on the Liverpool Stock Exchange and are currently priced at around 95 9d. ex-dividend. At this price they return an above-average 91%.

Martin Younger