BSM shares crash after profit warning
Tuesday 29 April 1997
The company also announced plans to cut its costs by pounds 1m a year through the closure of more than 10 per cent of its branches. The shares fell by a third at one stage but recovered slightly to end the day 37.5p lower at 103.5p - a reverse of 26 per cent.
Since the beginning of this year learner drivers have been required to pass a written theory test before being allowed to book their practical driving test. As a result, driving test applications received by the Driving Standards Agency have fallen by 54 per cent in the first three months of the year. The company said that it was also hit by bad weather in January, which affected the number of people taking lessons.
Provisional driving licence applications, the accepted indicator of market trends, are down some 15 per cent on the first quarter of 1996, but only 5 per cent down on the first quarter of 1995.
"Nevertheless, many learners have postponed starting their practical driving lessons until they pass their theory test. Reflecting these market conditions, the number of BSM franchised driving instructors has declined by 110 to 2,018 since the start of the year, while the number of driving lessons and driving tests are also down," BSM said.
In the first half of 1996, BSM posted a pre-tax profit of pounds 2.92m and paid a dividend of 2.53p. Although it now expects profits for the current half year to be about 50 per cent of those last year, BSM said it intended to maintain the interim dividend.
The cost-cutting plan will see 18 of BSM's 154 branches closed down. BSM's chief executive, Richard Glover, said the cost reduction exercise would protect and reinforce the platform for future growth.
- 1 Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
- 2 Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
- 3 Giorgio Armani criticises the way some gay men dress saying 'a man has to be a man'
- 4 Rebecca Francis accuses Ricky Gervais of using 'influence' to target female hunters after receiving barrage of death threats
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Rarest Beanie Baby bought for just £10 at car boot sale could be sold for £62,500 on eBay
Katie Hopkins and The Sun editor are reported to police for incitement to racial hatred following migrant boat column
'Jihadi John': Isis executioner Mohammed Emwazi wanted to wage jihad in Somalia until his friends were betrayed and killed by al-Shabaab
Parma, Missouri: 80 per cent of town's police quit after first black mayor is elected
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
If I’m being racially abused I don’t need a stranger with a saviour complex to rescue me
The only black face in the Ukip manifesto is on the page about overseas aid
Ukip is the only main political party to not address LGBT rights in its manifesto
Food banks: One million Britons will soon be using them, according to Trussell Trust
Religion isn't growing, it is becoming vigorous in its demise, says philosopher AC Grayling
BBC election debate: The one photo that summed up the whole 90-minute leaders debate
iJobs Money & Business
£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...
£30 - 35k (DOE): Guru Careers: We are seeking a Pricing Analyst with experienc...
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£21000 - £24000 per annum: Ashdown Group: The Ashdown Group has been engaged b...