City File: Nervous times

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The Independent Online
INVESTORS in Trafalgar House face another nervous week as the shares continue to lose ground. Last week, they dropped another 10p to 48p, amid continuing worries about rising debts, property values and the dividend likely to be paid by the ships, hotels and construction group.

The main provider of operating profits in 1991/92 is expected to be Davy, the engineering group it bought last year, and which analysts say could provide up to 80 per cent of operating profits. But the City is troubled by the extent of the company's dependence on such a newly acquired business, especially one that has been dogged by contractual difficulties.