Goldsmiths soars on bid talk
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SHARES IN Goldsmiths, the jewellery chain, shot up from 112p to 164p yesterday, after the group confirmed it had received a "very preliminary approach" which could lead to a bid.
Analysts suggested a trade sale to a large store chain or bid from rival jeweller Signet, but no hot favourite emerged. Goldsmiths has resisted the gloom that has overtaken most high street retail chains from Marks & Spencer down.
Earlier this year sales were running 10 per cent ahead of 1997 levels and Jurek Piasecki, the chairman and chief executive, has continued to predict sales increases in the run-up to the crucial Christmas period.
Analysts have only slightly trimmed their profit forecasts while still projecting a modest overall increase. But the shares have been badly affected by the market shake-out. Earlier this year the shares were trading at 280p and even after yesterday's rebound the market capitalisation is still under pounds 39m.
Five leading shareholders, including M&G Investment Management, control 23 per cent of the shares and the directors a further 13 per cent. Last year the chairman and chief executive set out an ambitious target of doubling the size of the business by expanding the distribution and office facilities and embarking on a programme to open 15 new outlets a year.
Shareholders last year also approved an ambitious incentive scheme for the directors, which required them to increase earnings per share by 100 per cent over five years if they are to receive any benefit and by 150 per cent to derive the maximum value.
The base for the calculation is 15.3p a share in 1996. Earnings rose to 19.1p in the year to 31 January 1998 and analysts still expect 21.5p in the current year, rising to 25.3p next year.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments