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Dennis expects profit

12th June 1970, Page 34
12th June 1970
Page 34
Page 34, 12th June 1970 — Dennis expects profit
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Which of the following most accurately describes the problem?

• The interim statement by Dennis Motor Holdings Ltd indicates sales to the year ended September 30 1969 of £4,665,000 with a loss of £240,579 and in addition £219,000 which was attributed to the year 1967/68 making £459,479 the total loss shown in the accounts. "The indications of the ability of the company to recover are only just beginning to emerge," says the statement.

During the first half of the current year a higher volume of sales had been secured; orders amounted to more than £3,300,000—an increase of £500,000 over the corresponding period in 1969. Value of orders on hand at the half-year was 40 per cent greater than the figure at the beginning of the financial year.

Indications were that the second half of the current year would show a profit which should continue in the future. However, it was not anticipated that the profit for the second half of the year would eliminate the loss for the first half.