Gloom among most Sinclair investors

Press, 15 May 1985, Page 40

Gloom among most Sinclair investors

By Michael Gillard in the “Observer,” London Such is the gloom among the 100 City investors in Sinclair Research, the company of Sir Clive Sinclair, the computer millionaire, that there are now fears that profits for the year ended in March may not reach £5 million. That compares with £ 14.28 million in 1983-84 and £ 7.9 million in the nine months to end-December. It is believed that Sinclair lost money in January, probably in February, and possibly in March. All of the problems that hit profits earlier in the year have continued, in some cases even more so. Falling sales, the price-cutting war and dissatisfied customers returning faulty personal computers. •Even profits of £5 million — seen by some as perhaps the best to expect — are a long, long way from the hopes of more than £3O million anticipated at the time of the share placing by merchant bankers Rothschilds two years ago. Since then the original investors, mainly insurance companies and unit trusts, have seen the capitalisation of the Sinclair company fall from £136 million to £4O million. For those institutions locked into Sinclair Research and showing a loss of at least £24 on shares that cost £34 each at the time of the £13.6 million placing there is little they can do but wait and hope. With only 10 per cent of the shares they have little means of influencing the founder, Sir Clive Sinclair, who controls the rest. Indeed the great inventor has shown little interest in their views. The two meetings with his shareholders since 1983 have been more

at their insistence rather than at his invitation. All of which makes any question of a stock market flotation academic until Sinclair Research’s profit picture and Sir Clive Sinclair’s relationship with the City improve. —Copyright, OFN.