MONEY MATTERS
Page 80
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Leyland's Half Way There
AT the end of the first six months of the current trading year LEYLAND MOTORS are well on the way to achieving their aim of hitting a target of sales of more than £200m. At the end of March last the group turnover amounted to more than £100m. compared with more than £91m. during the first half of the previous year. After allowing for depreciation and amortization profit increased to £9,150,000 from £7,490,000 during the first six months of last year.
And the outlook? The usual Leyland solidly based optimism. Order hooks continue to be at a satisfactory level. The directors find it too early yet to assess the likely effects of the credit restrictions. Nevertheless, they expect the present rate of improvement to continue during the year's second half.
Because sales can be seasonal in the lighter range of vehicles, the statement points out, half-yearly ligutes can be misleading. All the same my feeling (and I am not alone) is that this leading group will be there or thereabouts on target at the year's end .-----that is, on September 30 next. Meantime, the interim dividend is being effectively maintained at 21%. In respect of the trading year 1963-4 this was followed by a final distribution (payable on a capital made larger by a scrip issue on the basis of three-for-two) of 81%—a total of 11%. Despite the present unhappy state of equity markets the price of these shares was marked up 9d. to 53s. 3d. on the news. They are a sound holding.
The results for the year that ended on March 31 last announced by ERF (HOLDINGS) were much in line with market expectations. Group net profit came out at £133,397 and compared with £133,299 the previous year—this after a slightly higher tax charge (£133,788 against £129,944). The directors recommend a final dividend of 71%. This is payable on a capital increased by a scrip issue of one-for-two and makes the total for the year equivalent to 15.8%-0.5% more than was paid the previous year. These Ss. Ordinary shares were dealt in recently at 13s. 6d.
Further progress has been achieved by WILKINSON'S TRANSPORT GROUP—the shares of which have received a favourable mention from time to time in these notes. For the year ended March 31 last net profit amounted to £63,317 and compared with £53,355 for the previous year.
Out of these increased earnings the directors recommend a final dividend of 121%. This makes the year's total 20% comoared with the equivalent of 181% the year before. These 5s. Ordinary shares have been a steady market at around 17s. recently on the Manchester Stock Exchange. At this price they yield a useful 51,% based on the latest dividend. They should be held.
Martin Younger