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ERF shares its success

20th August 1987, Page 13
20th August 1987
Page 13
Page 13, 20th August 1987 — ERF shares its success
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Which of the following most accurately describes the problem?

• The share price of ERF Holdings, the parent company of Sandbach-based ERF, appears to be climbing even faster than the truck builder's sales, which are up by more than 40% this year.

As Commercial Motor dosed for press ERF Holdings' 25p ordinary share price was listed at 246p — up 76% (from 141p) since last June, when the company announced its 1986/87 figures.

Speaking at last week's annual general meeting chairman Peter Foden reported that the rise "can be accounted for by a significant improvement in the UK, and in particular, in our performance in this sector". He denies that the share price jump is the result of an impending takeover bid. Foden accepts that this is "always a possibility in the future", but adds, "I have no knowledge of any bid."

The success of the company's E Series "has exceeded even our most optimistic forecast, particularly in the home market", says Foden, but plans to increase truck production to 17 vehicles a day this month have been hit by problems with component supplies.

Even so, the company expects to be running at 17 trucks a day by the end of the year, provided there are sufficient sales.

Foden confirms that ERF aims to boost its export sales and has been talking to interested parties in Australia: ERF already sells trucks in New Zealand, and Foden says that ERF could sell well in Australia, but it is "very much in the discussion stage — we have no firm plans." Australian vehicles would be in kit form.

Tags

People: Peter Foden
Locations: Sandbach

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