MONEY MATTERS
Page 71
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B.E.T. Omnibus Raises Profits and Dividend N"profit of B.E.T. OMNIBUS SERVICES for the year ending March 31 last jumped to 1682,750 from £577,326 the previous year. Out of these higher earnings the board recommends a final dividend of 7%; this raises the total for the year to 10%, tax free, or I% more than was paid in respect of the year to March 31, 1963. This company, controlled by Brit:sh Electr:c Traction, states that two assoc:ates have converted to permanent capital retained sums attributable to Ordinary stockholders. This has had the effect of substantially increasing the company's nominal holdings. The directors have adopted par as the value of these holdings; the book values of them have been enlarged by as much as £653,814 and this has been placed to capital reserve.
Two intereseng interim dividends announced this week were PLAXTON'S (Scarborough) and DENNIS BROTHERS.
Plaxton's state that the number of coaches produced during the first six mouths (to February 29) of the present trading year shows a substant:al increase over those made during the sante period a year ago; the total produced during the year as a whole may well be a record. And according to figures available this has put profits on a higher level than those of a year ago. Although the interim payment is being no more than maintained at 71%, the directors consider that the prospects of raising the final payment (last year it was 1114%) are good.
The maintained 5% interim dividend announced by Dennis Brothers was well in 1:ne with market expectations. Last year's payment was followed by a final of 7%. At around their present price of 23s. 6d. these shares return a useful 5-k% on this basis.
In a guarded reference to the outlook the chairman of WEST RIDING AUTOMOBILE COMPANY (Sir Ronald G. Leon) states that the comparing of current traffic receipts with those for the corresponding period a year ago are misleading because of the more favourable weather this year. But, he adds: "Even after discounting this important factor, I am pleased to say that the figures are reasonably satisfactory." He regards a further increase in fares as inevitable, but "the position, with all its constantly changing factors, is being very carefully watched ", he comments.
Rounding off his review of a year which produced a record group profit of £304,635, the chairman of BARR AND WALLACE ARNOLD TRUST (Mr. J. Malcolm Barr) states that the company is very much alive and full of developments "which we feel will strengthen its position for the future and ensure its continued progress over the next few years ". The prospect of a "rights" issue to fund the bank indebtedness on a more permanent basis has tended to subdue the price of these Ordinary and A Ordinary shares. This, however, may well provide a good opportunity of buying a stake in a company that looks to have a bright future.
Martin Younger