MONEY MATTERS
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United Carrier! ividend Pleases
LAST December the directors of UNITED CARRIERS made a revised forecast of a final dividend of not less than 224%. As one broker commented when the results for the year ending January 31 last were announced: "'not less than' were the operative words". The recommended payment is in Fact as much as 37%, making, with the 11% interim dividend already paid, a total of 48% for the year. And, as one would imagine, pre-tax profits are similarly substantially better than the forecast; in fact, E81.000 better at 1180,893.
There is little doubt that the acquisitions made since the group was made public have played a notable part in this commendable increase. It does seem, too, that the merger which was effected prior to the shares coming to the Stock Exchange has taken firm root and begun to bring benefits. There had been some steady buying of these 2s. Ordinary shares in anticipation of the announcement which had taken the price to around 15s. 6d. It was not surprising, therefore, to see the buying movement gain momentum after the figures were made known. The price jumped quickly by another Is. to around 16s. 6d. Market opinion is that they should be held.
The number of vehicles sold by the FORD MOTOR COMPANY OF BRITAIN during 1963 was a record658,673. In terms of cash, group sales expanded from £273.9m. in 1962 to £346.9m. The group improved upon its already splendid record as a foreign currency earner. Of total sales, 52% were overseas; the total value of these exports amounted to £165m. The d'rectors believe this to be the largest amount ever recorded in any single year by any U.K. exporting company.
A stake in this group has to be made indirectly through a purchase of the $2•50 shares of Ford Motors. At the moment of writing these shares cost about $111 each to buy. They have been up to around $116 and down to $991 this year. At their present price they yield just under 3% gross.
Record sales figures too, have just been announced by VAUXHALL MOTORS. In monetary terms net sales for 1963 rose to £148m. from £126m. in 1962—a rise of about 17%. The total number of vehicles sold last year was a record and 15% more than in the previous year. And there is no resting on laurels; sales for the first three months of the present year are up by as much as 40% compared with those for the same period last year; exports are almost 50% higher. Pre-tax profit for 1963 was 110.91m. against £10-36m. in 1962.
The £16m. of Ordinary Stock of Vauxhall is all in the hands of General Motors Corporation of the United States. The price of the shares of the latter group are at present around $161 (about $5 below their 1964 peak price) at which they yield about 41% gross on the latest dividend, Martin Younger