HILLSDOWN Holdings yesterday reported operating profits for the first four months of the financial year broadly in line with those for the same period in 1997.
The statement followed speculation in the City that the
company found trading conditions tough - the same excuse that seemed to be emerging from Unigate after the dairy products company withdrew its 217p per share offer for
Hillsdown last week.
The bid had been unanimously been accepted by the
Hillsdown board, led by
chairman Sir John Nott.
The chilled foods-to-furniture conglomerate said trading was broadly in line with market expectations. However, the poultry interests suffered due to the strength of the pound but recent pricing indications pointed to a better second half.
Analysts have put a break-up value of about 195p per share on Hillsdown and consider the
Unigate approach an attractive offer for shareholders.
They are looking for pre-tax profits to rise from #153m to about #166m in 1998 and a similar advance to #180m for next year, taking the company as a whole and before its proposed break-up by October this year.
That would include the disposal of both the chilled foods business - the magnet for
Unigate - and Fairview New Homes housebuilding as separately-quoted entities in addition to sale of the furniture business and other peripheral consumer activities including Typhoo Tea.
In the markets the shares reacted by easing 2.5p to 180.5p as hopes remained that there could be a bidder in the wings.
Unigate was down half-a-penny at 664.5p with analysts looking forward to meeting the company next Monday for its presentation of full-year results. There they hope to hear further details of why the bid was suddenly withdrawn at 1.30am last Friday.
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