MONEY MATTERS by Martin Younger
Page 78
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Duple pre-tax profits slump by £102,500 in 10 months
DRE-TAX profits of Duple Motor Bodies for the first 10 months I of the current year fell to £121,500 from E224,000 compared with the same period the year before. The directors expect that profits for the final two months "will be small", and the turnover for the full year is forecast to be not less than 10 per cent lower.
The interim dividend is to be 4 per cent. Last year the half-waystage payment was 6.1,per cent for tax reasons.
There must be some doubt about the maintenance of the year's total at 121 per cent. To cover such a payment profits (pre-tax) of about £185,000 will be called for. Though the level of Corporation Tax may be slightly less than 40 per cent, it does seem that all the stops will have to be pulled out to achieve this cover. The market took a cautious view of the outlook, the price of these shares dropping around Is. at 6s.
Shareholders at the annual meeting of York Trailer Co. were informed by chairman Mr. F. W. Davies that development of the 17 acres acquired at Northallerton would be in three stages. The first would be completed within nine months (cost 120,000). The development of stages two and three depended a good deal upon the result of Britain's application to join the Common Market. Mr. Davies said that if Britain went in "we shall pull out all the stops."
Unpleasant news for the shareholders of Henlys—a cut of 2+ per cent in their half-time dividend cheque. Pre-tax profits for the six months that ended on February 28 amounted to £257,724 compared with £448,131 for the same period the previous year. The interim dividend is to be 5 per cent. General operational costs have been held at last year's level but the Jobs Tax played havoc with profits.
At the interval Attwood Garages forecast a drop in profits for the full year to something more than £100,000. Surprise, surprise—the setback turned out to be a mere £2,774, that is £134,324 against £137,098 previously. A sharpish upturn in demand during the final months of the year, plus the fact that stocks were cut back provided the incentives during the second half.