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MONEY MATTERS

12th November 1965, Page 186
12th November 1965
Page 186
Page 186, 12th November 1965 — MONEY MATTERS
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No Excitement from 11.M.C.

TiLE results for the year that ended on July 31 last nounced by BRITISH MOTOR CORPORATION are very much a same-again affair. Group trading profits (after overseas tax) amounted to 129.9m. compared with £291m. the previous year. After a substantially lower tax charge—£4-2m. against £8.9m.—the net balance comes out at 116.7m. compared with £11.6m.

The proposed final dividend is, as forecast when the Pressed Steel acquisition terms were made known last August, 71d. per Ordinary 5s. share—payable on a capital made larger by the merger with Pressed Steel. This makes a maintained total for the year of Is. per share. There was a 3% increase in the number of vehicles produced during the year. But for strikes this percentage surely would have been greater.

Sir George Harriman's annual review will be awaited with the usual high degree of interest by both shareholders and the market, probably with more attention than ever paid to his comments about prospects.

After allowing for corporation tax at 40% the net profit of VICTORY TRANSPORT for the year that ended on June 30 last improved to £39,741 from £35,014 the previous year. The directors recommend a dividend of 171%. This compares with the forecast of a payment not less than the 15% paid in respect of the previous year.

The pre-tax profits for the first six months of the current trading year announced by the APPLEYARD GROUP fell to £190,000 (approximately) from £215,000 for the same period the year before. Chairman Mr. Ian Appleyard states that non-availability of new vehicles from the makers because of strikes adversely affected trading during the period now reported on.

The unfavourable economic scene was a further factor mentioned by Mr. Appleyard as having adverse effects on trading. Nevertheless, the board is maintaining the interim dividend at 6%, which as almost sure to be interpreted by the market as board-room confidence in the outlook.

Martin Younger