DEPRECIATION RISE MEANS PROFIT CUT
Consolidated tax-paid profit of Midland Motorways Services, Christchurch passenger transport organisation, for the year to March 31 showed a decline from £41,657 to £21,202, mainly because of higher depreciation.
Operating profit increased from £108,377 to £118,625. However, many more vehicles were carried during the year to meet a growing demand and this accounted for a large increase in depreciation, up £18,064 to £79,159. The increase in the fleets caused fewer vehicles to be sold and resulted in a fall in depreciation recovered of £15,220 to £10,291. Dividend on the ordinary shares, not on the official list, has been reduced to 12j per cent and takes £13,562. Requirement for the listed 5J per cent cumulative preference shares is £2200. Earning rate on sharehold-
erse’ funds, up from £242,662 to £248,014, is 8.5 per cent against 17.2 per cent last year. Capital is unchanged at £148,500 and earning rate is 14.3 per cent. Dividend requirement is covered 1.3 times by the latest profit.
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Press, Volume CVI, Issue 31092, 22 June 1966, Page 17
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166DEPRECIATION RISE MEANS PROFIT CUT Press, Volume CVI, Issue 31092, 22 June 1966, Page 17
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