BSG cash call to raise 31m pounds

Click to follow
The Independent Online
BSG, the Birmingham motor group, is raising pounds 31.4m via a one-for-four rights issue at 62p to fund a capital expenditure programme over the next two years. The pounds 34m plans include spending pounds 12m on a car mirror plant in the US and pounds 7m on building two new Ford and Vauxhall dealerships, writes Tom Stevenson.

Astley Whittall, chairman, said current gearing of 49 per cent was high enough. But he added: 'We have undertaken a substantial capital expenditure programme in recent years and plan to continue.'

The company announced pre-tax profits for 1992 of pounds 12m, an increase of 8 per cent. Automotive components held trading profits at pounds 7.1m. The group supplies 8 per cent of car mirrors worldwide and makes 6 per cent of all European rear light clusters. It also recently won contracts from Audi and BMW.

The consumer and safety products division was hit by lower demand in the UK, although a German subsidiary, which provided the bulk of a pounds 7.1m profit, had a record year.

Motor dealing recovered from a difficult 1991, increasing profits from pounds 2.5m to pounds 4.1m.

Earnings per share were 3.46p, compared with 3.32p. A final dividend of 2.5p makes a maintained total of 3.2p.

Comments