30 JUNE 1973, Page 27

• Account gamble

Advertising attractions

John Bull

There is a boom at the Moment in' newspaper (national and provisional) advertising. This much is evident from recent results from the larger groups. Now on .July 3 the full year figures of Bristol Evening Post are due to be announced and I am expecting to see a pleasant reception given by the market.

Bristol Evening News last reported in December for the twenty-seven weeks ending September 30, Mr W. A. Hawkins, the chairman, then said that targets were being met and advertising revenue was in excess of expectations. At that stage sales were higher at £4.34m against £1.19m and pre-tax profits amounted to £717,000 against E546,000. This 31 per cent increase was achieved even though interest charges were sharply up and newsprint and labour costs were higher. Thus though there was no reference to the group's nonnewspaper activities with healthy advertising for jobs, property and consumer goods this side should continue to provide the mainstay of profits for the rest of the year.

The other aspect of Bristol Evening Post is the expansion of its newsagents and tobacconists activities. Last year these retail and wholesale interests contributed £69,000 of the total £1.2m pre-tax profit. Of the other divisions, features advertising made £3,000, transport and haulage E13,000 and general printing and processing £22,000.

Now I expect after the first half advance in profits that for the full year Bristol Evening Post will be able to make pre-tax in the region of £1,4m against £1.14m last time. On this basis at the current price of 145p the PE ratio is 13.5. But this is a conservative estimate and I would expect the multiple to drop quite a bit lower fp view of the present buoyancy of advertising. The shares moved up by (ip on the interim figures and I expect a good improvement this time, too.

Another situation that is attracting a deal of topical interest at the moment is Anglo-Thai Cor poration. This is a company in which Sir Denys Lowson has an important interest. Whether or not the current problems facing Sir Denys will influence the future of Anglo-Thai, I am not sure. However if he did feel inclined to consolidate and sell his interest in the company there would be no lack of takers and I believe that

1nchcape, that other large overseas trading company, is only too

eager to come to some arrangement with Anglo-Thai. The shares currently stand at 269p.

First Last Aceount dealings dealings day June 4 June 15 June 26 June 18 June 29 July 10 July 2 July 13 July 24