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Revamp at Allders

The Inland Revenue has given Allders the all-clear to revamp the stores group's capital structure, saving the company an estimated pounds 1.5m in special provisions, writes Jim Levi.

The share consolidation is on the basis of 15 new shares for every 19 existing shares. Last autumn Allders' directors paid out 46p a share as a special dividend totalling pounds 50m - paying back to shareholders a substantial slice of the pounds 160m it raised when selling its duty-free operations to Swissair.

However, plans to compensate option holders - some 650 employees hold 2.87 million options - through a capital reconstruction fell foul of new rules introduced by the Chancellor, Kenneth Clarke.

Allders shares gained 5.5p to173p.