ACCOUNT GAMBLE
Bullish Laird
John Bull
I quote from the statement of Laird Group's chairman, Sir Maurice Banks in the 1971 annual report: "As far as 1972 is concerned it is premature to make a forecast of profits for the year but as in the past I will bring shareholders up to date with the present situation at the annual general meeting on June 5 next." As usual in this game of staking money on a company in the limited period of an account I am forced to crystal-gaze. And in this instance, I envisage that Sir Maurice will express bullish undertones in his statement — far more so at least than the market expects — and this is the basis of my recommendation for purchase.
As usual in this type of operation timing is vital. You will see from the table of dealing dates given below that Laird's AGM falls on the Monday after the end of the current account. The option therefore is either buy now and sell before 5 pm on Friday June 2 of buy in new time dealings after 5 pm on Wednesday May 31. In either case I expect that the shares will show useful appreciation over the current level of 97ip.
Before I venture to give my own forecasts let us look at the figures just announced for the year ended December 31, 1971. On turnover up from £56.5 million to £60.9 million, pre-tax profits were up by £860,000 to £2.8 million, leaving earnings nearly ten points higher at 27.7 per cent. This sharp rise in profits has largely stemmed from the measures instigated by the management. Their new-broom tactics have changed Laird from a position fringing on disaster to that of a financially sound group.
Laird now has resources that allow it to undertake considerable expansion and I am sure that the management will take full advantage to deploy assets successfully. Over the last year there has been a £3.5 million reduction in the working capital f shall Cavendish have now, 3 ejt later, sold at half a million Pn'is' goes to show there are some de, 0 even clever fellows like DesPan' busy to pick up.
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