Ferranti chairman warns of heavy half-year loss

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The Independent Online
EUGENE ANDERSON, chairman of Ferranti International, said yesterday that losses for the half- year just ended would probably exceed the interim loss of pounds 10.9m last year, writes Rupert Bruce.

Speaking at an extraordinary meeting, he said: 'Unfortunately, I cannot report on the performance for the half-year to 30 September just completed, as indeed we ourselves have not seen these results. However, we will incur another loss during the period which almost certainly will be larger than the comparable loss last year.'

He said liquidity continued to be tight, making relationships with suppliers difficult. Ferranti was still seeking an equity injection or 'strategic partnership'.

Tressan MacCarthy, an analyst at Panmure Gordon, said she had not expected such large losses. She added: 'It does not change one's views on Ferranti in that if they get some big orders in they will be fine. If they do not, next August when the banks look at their loans they may not give them cover.'

Ferranti had to call the meeting under the Companies Act 1985 because its pounds 47.9m net assets had fallen to less than half of its share capital. The board's recommendation that the capital base should not be reduced was passed.

The shares fell 0.25p to 9p.