Welcome to the new Independent website. We hope you enjoy it and we value your feedback. Please contact us here.

Radstone raises 7m pounds

RADSTONE Technology, a manufacturer of computer sub-systems for defence and industrial uses, is raising pounds 7m net of expenses through a placing of 65 per cent of its shares, writes Diane Coyle. The placing price of 125p values the company, formed six years ago as a management buyout from Plessey, at pounds 19.2m.

The company forecasts profits before tax and exceptionals of pounds 1.5m in the year to 31 March 1994, up from pounds 1.2m on pounds 26m turnover last year.

Charles Paterson, managing director, said pressure on defence budgets meant prospects for sales of Radstone's standardised components to the military were good.

The directors are selling few of their shares and will continue to hold 6.1 per cent of the equity following the placing. The placing price implies a prospective price- earnings ratio of 15.8. Dealings are expected to begin on Monday.