Downturn for TKM

Press, 10 September 1987, Page 24

Downturn for TKM

Tozer Kemsley and Millbourn (Holdings), Pic, the Brierley Investments controlled British motor vehicle holding company, incurred a downturn in its total profit in the latest six months. Although the pre-tax profit was 72.1 per cent ahead to £12,181,000, the final result was down 23.5 per cent to £7,150,000 in the six months to June 30, compared with the previous corresponding period. However, the previous period included an extra: ordinary profit of £5.4 million, and if this is excluded then net earnings were ahead 79.6 per cent The directors said in a statement that the integ-

ration of the Kenning Motor Group, after its acquisition in May, 1986, was a significant factor in the improved result. Additional benefits were expected to emerge from Kenning. The 61.6 per cent increase in turnover was largely because of the inclusion of Kenning’s figures. The directors said that they were disappointed that the take-over for Molins, Pic, the British machinery group, did not succeed, but TKM was not prepared to pay more than £3 a share.

TKM would be pursuing other acquisitions, both in the motor trade “and fur-

ther afield.” The retail car market, which was still TKM’s main source of earnings, was traditionally more buoyant in the second half after the new registration prefix in August. A pre-tax gross profit of £15.9M, up 58.7 per cent, was achieved on the turnover, but equity profits were down sharply from £I.IM to £23,000. Taxation took £2.IM more at £4.9M, and minority interest dropped £138,000 to £33,000.

An interim dividend of 0.6 p a share has been declared payable on October 19.