Staveley issues profits warning
Wednesday 28 April 1999
Staveley shares fell 2.5p to a new low of 63.5p after the company said exceptional charges in the current year would be pounds 3m higher than expected at pounds 22m. The costs push the group to a loss of pounds 6m in the year to March.
The warning is expected to lead to renewed calls for a break up by 16 per cent shareholder, Guinness Peat. One analyst said: "It's going to break up eventually. The problem is that if it breaks up now, shareholders won't get decent value. The salt division on its own should be worth more than the current pounds 73m market capitalisation."
British Salt, whose prices are regulated by the Office of Fair Trading because of its high market share, accounts for 11 per cent of Staveley's sales but 99 per cent of its operating profits.
Staveley's other interests include a host of service businesses from non-destructive testing to a contracting division.
The company has been restructured, with 30 per cent of its senior management axed in the past year. But this year's mild winter and resulting shortage in salt sales has further eaten into profits in the core salt business.
Chris Woodwark, chief executive, said yesterday's "housekeeping statement" was an attempt to keep shareholders informed. He added: "We've got a lot of costs coming out and a lot of reorganisation as we get into a leaner, fitter shape. My aim is to build this company into something which shows a return on shareholder value."
On Investec Henderson Crosthwaite's pre-exceptional profits forecast of pounds 16m, the shares trade on a forward multiple of just 6. "It's a difficult one to be optimistic about but we've got it down as a hold because underlying value is in excess of the share price," says analyst Geoff Allum.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
New era of cheap oil 'will destroy green revolution'
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...