SUTER chairman David Abell played his customary straight bat when
asked about the mini-conglomerate's intentions towards engineers James
Wilkes, where a 10.2% stake has now been accumulated.
As the Wilkes price went ahead another 5p to 70p yesterday against the
stake price of just under 50p, there is the usual and predictable
speculation that a bid could be in the offing.
Reluctance to show even one of his minor cards such as the possibility
of selling off the valves side, or add anything to the aftermath of the
DTI investigation which cleared Mr Abell, combined with the Wilkes
situation to drive down Suter's share price 10p to 144p.
The underlying trading results were rather good against the general
economic background.
Group pre-tax profit eased 8.5% to #16.3m, with the pain being seen
largely in distribu-
tion.
The main problems were wholesale commercial refrigeration where France
is just marginally profitable and in hairdresser salon equipment.
The industrial side saw reduced demand for spectacle cases but there
is a nice niche business now developing with the Ford Mondeo, in
mouldings and mud flaps -- altogether some #3m annual turnover is pos-
sible.
The star performance came from chemicals through improved productivity
-- the division benefiting from much of the #29m capital expenditure
over the last three
years.
Gearing at 70% or debt of #31m is high enough, although the more
meaningful ratio of an interest cover of five times is quite consoling.
The dividend total has been held at 8.8p, with a
5.6p final for an 8.1% yield.
A one-for-10 issue of warrants is proposed.
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