'-MONEY MATTERS
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East Yorkshire pay more
NET profit of EAST YORKSHIRE MOTOR SERVICES for the
year ended September 30 last improved to f130,940 from £114,243 the previous year. Out of these increased earnings the directors recommend a final dividend of 90, making the year's total 131% lass tax. This compares with 8% in the previous year. Substantially increased costs have made it necessary to seek an increase in fares and an application has been lodged with the Traffic Commissioners.
In his .latest annual review the chairman of DENNIS BROTHERS, Mr. A. R. Stewart, stated that he was "not aware" of any take-over bid for the company—rumours that a grab was on the way have circulated recently. He added that he was not expecting any such bid. This did not mean, he stated, that such a bid could not be made. If there was one, shareholders would be told as soon as the board was satisfied "that it was serious".
About those who spread bid rumours Mr. Stewart commented that they may have paid undue regard to the company's Guildford property. Because of the size of site that would be required
owing to the bulky nature of the company's products, the directors believed it would be "a hazardous move" to dispose of Guildford and set up shop elsewhere. After full consideration of all factors the directors "are convinced the correct course is to channel all efforts into correcting faults in the organization and to increasing profits at the present Guildford premises," The directors were unaminous in their confidence that the company could be restored to prosperity, stated Mr. Stewart. "This confidence is in no way shaken by the factthatthe results of their efforts may take a year or so to fructify."
The 10s. Ordinary shares are currently priced at around 18s. to give a yield as low as 2,4%, a yield that clearly points to the market's continued expectation of a "seriousbid. My own view is that one fine day such a bid will come along and for that reason I would not be in a hurry to sell these shares.
Martin Younger