Public grief for Herring Baker for Herring
The Investment Column
Wednesday 17 May 1995
His average buying price of 40p compares with yesterday's 12p, unchanged after the announcement of a hefty £7.65m loss. For anyone who has had the misfortune to be on the register since the fateful merger that created the company three years ago, the decline in the value of their stake has been a more galling 94 per cent.
Herring Baker is not alone - the whole surveying profession is suffering from vicious competition following the slump in property market activity of the past few years. For most of the profession, which keeps its figures hidden in partners' dining rooms, that has been a matter of private grief. For the handful of publicly quoted firms, however, it has wreaked havoc with their share prices - Herring Baker peaked at 190p in 1991.
With sales of £13.9m and staff costs and other overheads of £15.2m, there is no great mystery about Herring's problems. Mr Micawber would have understood only too well the industry's inability to match spending and income. What is most worrying about yesterday's announcement is the dilution imposed on shareholders by the decision to buy out of onerous lease agreements by issuing shares amounting to a fifth of Herring's existing share capital.
If a surveyor cannot get its own leases right, shareholders might rightly wonder what it can do.
- 1 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 2 David Cameron refers to 83-year-old Labour MP Dennis Skinner as 'Jurassic Park'
- 3 Alton Towers Air breaks down: 80 people stuck on broken down Monorail during heatwave
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Alwaleed bin Talal: Saudi Prince to donate entire $32bn fortune to charity
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
The map showing the most dangerous tourist destinations in Europe, according to the Foreign Office
German ethics council calls for incest between siblings to be legalised by Government
Alwaleed bin Talal: Saudi Prince to donate entire $32bn fortune to charity
Forget little green men – aliens will look like humans, says Cambridge University evolution expert
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: IMF was pushed around by Angela Merkel and Nicholas Sarkozy – and now it is being humiliated
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
Girl, 7, stares down hate preacher at Ohio festival with pro-LGBT rainbow flag gesture
They are neither a 'state' nor 'Islamic': Why we shouldn't call them Isis, Isil or IS
iJobs Money & Business
£15000 - £17000 per annum: Recruitment Genius: This company offers a range of ...
£15000 - £16000 per annum: Recruitment Genius: Customer Service Advisors are r...
£20000 - £25000 per annum + OTE £45K: SThree: SThree were established in 1986....
£40000 - £60000 per annum: Recruitment Genius: A Compliance Manager is require...