Mackie flotation will make Dougan's shares worth pounds 5m

PATRICK DOUGAN, chief executive of Mackie, the west Belfast engineer, will hold shares worth pounds 5m when the company is floated, writes Robert Cole.

Mackie, which faced financial ruin when Mr Dougan joined in December 1991, is one of west Belfast's largest employers, making yarn spinning equipment primarily for linen and jute.

Mackie hopes to raise pounds 9.6m in the float, to be used to repay debts. Total borrowing is pounds 15m but US holders of most of the debt have agreed to accept 47p in the pound.

The company foreacast that profits for the year ending 31 December 1994 would be pounds 1.9m. Shares are being placed on the unlisted securities market at 180p - equivalent to 7.5 times prospective earnings per share. Mackie also expects to pay a 1p dividend for the year.

Mackie will continue to receive assistance from the Government after the float and plans to spend pounds 8m on modernising its west Belfast factory. The Government has pledged pounds 2.7m directly, another pounds 1.6m if Mackie reaches pre-agreed sales targets, and extended loans for the rest.

Mr Dougan said Mackie was insolvent when he joined and has survived thanks only to grants totalling pounds 15m from the Government. He was given 66 per cent of the company when he joined. Although he is not selling shares in the flotation his holding will be diluted to 26 per cent.