Racal boss Harrison to retire next year
Sunday 08 December 1996
A profits warning on Monday took 18 per cent off the share price in a day. Analysts are concerned about the role of chief executive David Elsbury, who had direct control of the radio division, which was responsible for the pounds 14m profits downgrade.
Sir Ernest, 70, who has been running Racal since May 1966, admitted the announcement was badly handled. It was a "tragedy" that the warning had been made 24 hours before good interim results were announced. The decision was made on Sunday night, he said, following an emergency board meeting at which it was decided to excise three radio orders that had been expected to arrive during the current financial year. This removed pounds 30m of sales and pounds 14m of expected profits.
Advisers from NatWest and Merill Lynch told directors on Sunday night that the profits warning must be made on Monday, in case of a leak. The interims announcement, planned for Thursday, could not be moved to coincide because the releases were not ready, but it was brought forward to Tuesday. Sir Ernest said: "Maybe we should have done it all on Tuesday."
The results showed sales up by 20 per cent and profit before tax up by 11 per cent. Shares fell from 275p to 225p on Monday, recovered to 247p on Thursday and closed at 238.5p on Friday.
Profile, page 5
- 1 Christmas comes early to Hong Kong, as millions of bank notes spill out onto busy street
- 2 The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
- 4 Vagina canoe artist facing two years in jail defends herself over ‘obscenity’ charges
- 5 The Queen’s speech 2014: Recap and Twitter reaction to Game of Thrones reference
PlayStation and Xbox hacked by Lizard Squad
Antonio Martin shooting: Black teenager may have tried to ambush patrolman, says police officer's lawyer
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
Boxing Day snowfall could push even more bargain-hunters online for Christmas sales
The 'Black Museum': After 150 years, public can visit police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Alex Salmond has 'broken his word to the Scottish people' says Scottish Lib Dem leader
iJobs Money & Business
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...
£43500 per annum + pension + holidays: The Jenrick Group: Night Shift Operatio...
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...