Call our Sales Team on 0208 912 2120

Cowie bids for Henlys

2nd July 1992, Page 14
2nd July 1992
Page 14
Page 14, 2nd July 1992 — Cowie bids for Henlys
Noticed an error?
If you've noticed an error in this article please click here to report it so we can fix it.

Which of the following most accurately describes the problem?

• T Cowie has made a £27.9m bid for the Henlys Group which last week said it will make a loss for the half year to June mainly through a slump in work for its Scarborough-based PCV builder Plaxton.

The motor distributor says Plaxton would be the first part of the group it would want to develop. It already has interests in the PCV field with its Cleckheaton-based PCV dealer Hughes Daf and London-based coach operator Grey-Green.

Henlys promised its shareholders last week a 'major programme of cost reductions" at Scarborough. Group chief executive Robert Wood says management consultants were called in around five weeks ago, amid little prospect of a pick up in sales in the second half of the year: "As indicated at the annual general meeting in May, the market for buses and coaches

remains depressed, with registrations running at lower levels than the same period last year. There have also been some initial teething problems with the production of the new coach range," he told the City last week.

However, the half-year performance of the motor division, used coach activities, Roadlease Finance and parts and service division are expected to be broadly in line with budgeted objectives, and ahead of the results for the same period last year, said Wood.

The City had hoped the company had turned the corner after it showed a satisfactory first quarter but Plaxton shares tumbled 22p to 55p last Friday.

Analysts had been hoping for a bounce back into profits for the group in the year to December, following last year's loss of £6.8m.


People: Robert Wood

comments powered by Disqus