BLUECHIP : The bad days may be over as BTR bites the bullet
Sunday 09 March 1997
Also intriguing was the final bowing-out of the BTR old guard with the departure of Alan Jackson, the former managing director. Two new, and it has to be said, independent non-executive directors were also appointed. Simon Robertson, who resigned from Kleinwort Benson after disagreements with its German parent, Dresdner, is joined by Alain Gomez, who retired last year as chairman and chief executive of French defence group Thomson- CSF after rowing with the Paris government over an alliance with General Electric.
Pre-tax profits may have been down 13.4 per cent, to pounds 1.26bn, but what excited dealers was the glimmer of a turnaround. Mr Strachan has said he will dispose of businesses with combined sales of pounds 2.3bn. Around pounds 1.75bn of this target has already been achieved - which explained the pounds 247m fall in sales to pounds 9.53bn - with 25 more smaller companies to go. Growth in specialist engineering, building products and polymers helped offset some of the sales loss.
After a disastrous spell during which it has been one of the worst-performing shares in its sector, BTR is picking up steam. With the dividend cut, it has freed up cash for investment. Some poor performers have gone, and more are set to join them. Mr Strachan still faces a huge task in refashioning the group, but there are signs he can do it.
The shares continue to trade at a 25 per cent discount to the market, so there seems little downside from here. BTR is a buy, with the proviso that it may be up to three years before the promised land is finally reached.
- 1 Edward Heath 'raped 12 year-old boy at Mayfair flat'
- 2 London is the most googled city in the world
- 3 Porn block in India: hundreds of sexual websites banned, internet outraged
- 4 Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
- 5 Richard Dawkins ridicules Sabrina Corgatelli for claiming her giraffe kill was 'ethical'
Edward Heath 'raped 12 year-old boy at Mayfair flat'
'Gene drive': Scientists sound alarm over supercharged GM organisms which could spread in the wild and cause environmental disasters
Gwen Stefani and Gavin Rossdale divorce: One of music industry’s most enduring couples announce split after 12 years of marriage
Dutch King Willem-Alexander declares the end of the welfare state
Giant Minion terrorises drivers in Ireland as 40ft inflatable blocks traffic on Dublin road
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Chris Leslie: Jeremy Corbyn's anti-austerity agenda will harm the poor, says Labour shadow Chancellor
Landlords renting properties to illegal immigrants to face up to five years in prison
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
Labour leadership race: Jeremy Corbyn could be the next Prime Minister, says Ken Clarke
iJobs Money & Business
£35 - £50k DOE: Guru Careers: A Tax Manager / Accountant (ACA / CA / CTA) is n...
£35000 - £37000 per annum + benefits: Ashdown Group: Contracts Executive - Cit...
£20000 - £25000 per annum + OTE £45K: SThree: SThree Group have been well esta...
£21000 per annum: Recruitment Genius: This is an exciting opportunity to join ...