It has become one of the world’s largest makers

It has become one of the world’s largest makers.Amstrad has also repositioned its computer operations, withdrawing from the cut-price high street and moving into direct sales through the pounds 60m acquisition of Viglen.Last week the market took further encouragement from the decision of Viglen’s vendors to take part of their consideration in Amstrad shares, based on 219.5p, a level near the then ruling price.Shell, the only blue-chip hero of Monday’s retreat, put on another 5p to 758p, with James Capel apparently upgrading.Rank Organisation edged ahead 2p to 415p ahead of a trading statement, due tomorrow; Brent Walker lost another 0.25p to 2p on litigation worries.Union, the financial group, lost 4p to 91p. The shares have enjoyed a new lease of life since a five-for- one consolidation in November.Their strength has been powered by a determined drive into cellular telephones. TSB, the banking group, and Thorn EMI were supported on the theory that if corporate action is being prepared they fell too far in Monday’s rout.Amstrad, the electronics group run by Alan Sugar, climbed 9p to a peak of 246p. Other retailers were pulled lower in sympathy.Argyll Group, with the market alighting on its defensive qualities at times of unrest, was the best-performing blue chip, up 9p at 323p.British Airways, on European buying, rose 6.5p to 405p. It was the scent of lower rates that galvanised New York into activity.Among leading equities, Sears, the retailing group, spread trading gloom. There are fears the Bank of England could be tempted to prop up sterling by lifting interest rates.

But more US economic data, pointing to lower transatlantic rates, could take some of the pressure off the pound. Then New York opened on a confident note and just a little brightness filtered into the proceedings. The FT-SE 100 index, at one time down almost 16 points and below 3, 300 for the first time for more than a month, rallied to manage a 4-point gain to 3,313.2 at the close.
It was, however, a limp session, with the Major/Redwood confrontation ensuring nerves remained stretched and keeping genuine investment activity at a low ebb.The market’s obvious fragility could lead to further violent swings as the leadership contests unfolds. The Americans, once again, came to the rescue of a harassed stock market.

Demand in the UK remains flat, but direct exports and overseas sales continue to thrive. Total sales grew 14 per cent to almost pounds 154m, driven by a 20 per cent rise in exports to pounds 48.3m.Eight businesses have been bought since March last year, and there is scope to acquire more with net cash of pounds 12.7m.. However, he added, this left “scope for further improvement in the current year”.The trading picture is mixed. The outcome also fell short of the most pessimistic estimate of pounds 29.5m by NatWest Securities, the broking house that warned about slower organic growth in March.A rise in total dividends from 2.37p to 2.85p was also below expectations of a 2.9p payout.David Barber, chairman since the shares traded at only 0.5p in 1973, said some subsidiaries that underperformed in 1993/94 had made only “partial recoveries”. Profits of pounds 39m would put the shares – at 360p, down 4p yesterday – on a prospective price/earnings ratio of under 11 Fair value in the circumstances..

JOHN SHEPHERD

Halma’s record as one of the UK’s best performing quoted companies over the past 20 years was dented yesterday, with the shares falling 10p to 191p as the environmental and technology group’s annual results failed to meet analysts’ forecasts.
Profits before tax for the year to 1 April rose 17 per cent to another record pounds 29.2m, but most analysts had pencilled in a result of pounds 31m. House sales were running at 10 per cent below target even before John Major’s resignation, which is only likely to heighten the jitters in the market.But given the impressive record and negligible borrowings, Berkeley is well placed to perform again this year. Mr Roper believes land prices could fall by 10-15 per cent if the current uncertainty surrounding the market is not lifted by some government action. The average price of a Berkeley home was pounds 190,000 last year, well out of the reach of the bottom of the market and a pounds 30,000 uplift on the previous year.That increase was the main reason for the strong profits rise and was part of a conscious effort to target the wealthier customer.Out of nearly static house sales of 1,411 units, 40 per cent were in the pounds 200,000 bracket or above and several sold for more than pounds 900,000.The strength of the central London market, where Berkeley is well represented, was also a factor behind last year’s figures, although Graham Roper, chairman, said the overall market was pretty consistent last year.It is not easy to be as sanguine about the outlook for the next 12 months. Turnover advanced 24 per cent to pounds 283m and the dividend is hoisted 11 per cent to 7.75p, after a final of 5.65p.Part of the secret of Berkeley’s success is its insulation from the first- time buyer, hardest hit by the negative influences currently afflicting the housing market. This group includes the recovering Storehouse and Next, where a recovery story is also in progress. Prospects are also improving at Dixons as the electrical stores group fights off competition from the regional electricity companies and Comet.Languishing in the mud are WH Smith and Kingfisher, both of which are struggling against the supermarket groups.