Voting changes lift Parkland shares

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The Independent Online
SHARES in Parkland Textile jumped sharply yesterday when it revealed plans to reorganise its two-tier share structure, writes Robert Cole.

Holders of the non-voting 'A' shares are to be enfranchised. Voting ordinary shareholders will be compensated for the loss of influence by being granted four new shares for every five held.

Bryan Lodder, managing director, said the decision was inspired by similar moves at the mail order retailer Great Universal Stores, brewer Whitbread and property company Hammerson.

He said: 'While it is becoming very fashionable to enfranchise shareholders, we have not acted entirely philanthropically. It also makes it easier to go to the stock market for money if suitable acquisition possibilities arise.'

Parkland dyes and weaves fabric. It also announced interim profits yesterday. For the half-year to 27 August it made taxable profits of pounds 933,000 compared with a loss of pounds 309,000.

Mr Lodder said the company's success lay in reducing the time it took meeting orders and increasing its ability to introduce new colours and different designs.

Parkland's ordinary shares climbed 40 per cent in value to close at 365p and the 'A' shares rose 28 per cent to 221p.

Earnings per share increased to 12.1p from losses last time of 4.8p. The company is paying a 2p dividend, up from 1p.