Appleyard shares slump as bid talks collapse
Saturday 23 August 1997
Shares in Appleyard, the embattled Yorkshire-based car dealer, slumped 10.5p to 63.5p yesterday after the company announced that talks about a possible bid, first announced in June, had ended without an acceptable offer being made.
A number of parties have shown an interest in the group after a first approach from an unnamed company, believed to be Sanderson Bramall, was made public.
But Lazards, the group's advisers, took the view that none of the bidders was willing to offer a high enough price.
Appleyard is unlikely to face a hostile bid because most car manufacturers have clauses which can void existing franchises if a company changes hands. But the company, which 10 years ago was one of the strongest quoted companies in the sector, remains beset with problems.
It is still nowhere near finding a chief executive to succeed Mike Williamson, chairman and chief executive, when he gives up his executive role at the end of the year.
The business is also suffering from the widespread restructuring imposed by the leading car manufacturers which are reducing the number of franchises they deal with, amalgamating territories and demanding heavy capital investment to improve showrooms and customer service.
The main losers have been the small privately owned firms which cannot provide the necessary capital investment, but Appleyard has lost two prestigious Jaguar franchises in Leeds and Harrogate and several other outlets have been closed or sold.
The statement coincided with the release of figures for six months to the end of June showing a 3 per cent drop in turnover to pounds 380m and a 16 per cent drop in profit before tax to just pounds 3.88m, even including an exceptional profit of pounds 725,000 on the disposal of dealerships.
The interim dividend has been cut from 3.1p to 2p. The figures were marginally better than some analysts had expected, after last year's full year loss of pounds 5.35m, which included a charge of pounds 8.6m to cover the cost of restructuring and slimming down the business.
- 1 Half of young women unable to ‘locate vagina’ and 65% find it difficult to say the word
- 2 Perez Hilton apologises for Jennifer Lawrence naked photo leak
- 3 A teacher speaks out: 'I'm effectively being forced out of a career that I wanted to love'
- 4 Mexican woman becomes world’s 'oldest person' at 127
- 5 Jennifer Lawrence 'naked sex video' will be leaked threatens 4Chan celebrity photo hacker
Rotherham child sex abuse scandal: Labour Home Office to be probed over what Tony Blair's government knew - and when
What do immigrants really think of Britain? Polish immigrant's Reddit post goes viral
Ashya King: Parents of five-year-old boy refused permission to visit him in hospital and denied bail at Spanish court
With Douglas Carswell joining Ukip, my party has taken another giant step forward
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
Ashya King: 'Cruel NHS has not given us the treatment we need', says father of five-year-old with brain tumour who fled to Spain
iJobs Money & Business
£40000 - £50000 per annum + benefits+bonus+package: Harrington Starr: SQL Impl...
£85000 per annum: Harrington Starr: Head of IT (Windows, Server, VMware, SAN, ...
£40000 - £50000 per annum: Harrington Starr: You will not be expected to hav...
£500 per day: Harrington Starr: SQL DBA/Developer SQL, C#, VBA, Data Warehousi...