Powerscreen International, the troubled Northern Ireland engineering company, has not received any take-over approaches, formal or informal, according to a group spokesman. And the company is not involved in any discussions, he added.
The spokesman was responding to the continued rise in the share price which increased 28.5p to 148.5p in Dublin and from 124.5p sterling to 130.5p in London. This upward movement has been attributed by the market to possible take-over talks. The spokesman attributed the share price rise to the completion of the latest accounts, the annual general meeting, the appointment of a new chief executive - Mr Brian Kearney - and the return to normal trading following the substantial write-offs. The a.g.m, he said, signalled the dawn of a new era. Following the exodus of many of the major institutional shareholders, the group now has 10,000 shareholders compared with 4,000 six months ago.
The company, under the new management, the spokesman noted, has done a lot of what it said it would. The group debt had been £80 million but following the asset disposal programme, this is now down to £21 million to £22 million.
However, he stressed it "will take a while to restore the full confidence in Powerscreen", noting there is a "lot of rebuilding to do".
Quinn Direct Insurance, controlled by the Sean Quinn Group, took a 6 per cent stake in the group. Asked if Mr Quinn had spoken to Powerscreen, the spokesman said there had been no contact. The market views this as an investment rather than as a prelude to a take-over bid. Powerscreen plans to publish its interim results early in the new year. Interim results are usually unaudited but the group will produce audited results in a further move to restore confidence in the company.
Goodbody Stockbrokers, in its latest review of the company, has forecast pre-tax profit of £20 million in 1998/9 contrasting with a loss of £47.6 million. It notes that the risks to the group have been substantially reduced over the last six months. The review also points out that the shares are trading at a 25 per cent discount to comparable European companies.
