City File: Screen test

GRANADA may have had a rights issue in the summer of 1991, but it does not look like emulating Burton and Asda and repeating the process this spring. At the annual meeting on Friday, Gerry Robinson, chief executive, may nevertheless face some close questioning about possible acquisitions.

Mr Robinson was interested in Gardner Merchant, Forte's catering side, but said the business came on to the market a year too early for him. This indicates something may be on the cards this autumn.

Meanwhile, the cost-cutting at Granada TV and the TV rentals side's victory over Customs and Excise on VAT should power the group's profits to around pounds 160m this year. The shares still look decent value at 349p.