Henry Berry cash issue

Press, 25 August 1981, Page 19

Henry Berry cash issue

Henry Berry, Ltd. will make a one-for-four cash issue of ordinary 50c shares at a premium of 100 c a share. '.

The issue will raise S2.IM. and the rights will be renounceable. The company intention to make the issue was announced to shareholders at the annual meeting, by the chairman (Mr A. B. Brown).

The decision had been taken just before the annual meeting and full details would be made known as soon as possible, he said. It could be some weeks before everything was tidied up. Mr Brown said the proceeds of the issue would not only finance the company expansion requirements, including acquisitions, but would also create a fund for payment of tax-free dividends.

He reminded the meeting that Henry Berry had acquired several companies over past years and all were trading well. None had been acquired by the “modern brutal method" of take-over bid, and all the companies

concerned had been pleased to join the group, he said. Mr Brown said the company had steadily diversified over the years,’ and would continue to do so. Further acquisitions were on the horizon and. rather than go outside for borrowing, the directors preferred to bring the shareholders into the picture.

The new shares would not qualify for the next interim dividend, but would certainly do so for the final, Mr Brown said.

Group sales in the quarter to June 30 were higher by $1,794,000 over the corresponding period of the 1981 year. (First quarter sales in that year are understood to have been about SBM.)

Mr Brown said the Hylin company did not belong to the group until April 1 and if its increase was added it would bring the group increase to about $1,981,000. If the trend continues, and the company is successful in negotiations being considered at this moment for further acquisitions, then it would be a very interesting year, he