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.
And why are 'southern' ways of speaking spreading north?
Ten best places to live in the UK: Solihull comes top
Mysterious glowing ‘alien-like creature’ spotted in waters of Bristol Harbour. A jellyfish - or something fishy?
From 'terrorist' to tea with the Queen
UK weather: More surge tides forecast after thousands evacuated along east coast
Nelson Mandela death: his life in pictures
- 1 Cameron's freebie to apartheid South Africa
- 2 Nelson Mandela life story: An unconquerable spirit
- 3 Is this the scariest advert ever? Japanese tyre commercial comes with its own disclaimer and health warning
- 4 A forgotten episode in Russian history leaves links with the Philippines
- 5 From 'terrorist' to tea with the Queen
iJobs Money & Business
£450 - £500 per hour: Cornwallis Elt : Business Analyst Finance System Hy...
£400 - £550 per day: Cornwallis Elt : BUSINESS ANALYST- OPERATIONS- PRIVATE B...
£50000 - £65000 per annum + benefits + bonus: Harrington Starr: Market Data SM...
£50000 - £70000 per annum + benefits + bonus: Harrington Starr: Business Analy...