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City File: Hanson

Saturday 15 May 1993 23:02 BST
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THE story of Hanson's ballooning tax charge will continue with the group's half-year results - out on Tuesday. While pre-tax profits will have slipped by about pounds 18m to pounds 470m, nearly 30 per cent of this will be going to the taxman, compared with just 17.9 per cent last time.

This means earnings will fall about 15 per cent to 7.1p. The group's house-building operation - Beazer - is still having a hard time but there is good news from new purchase Cavenham, and the end of the strike at Peabody mining.

The generosity of Lord Hanson in paying quarterly dividends - 2.85p is expected for the second quarter - is pleasing the market. Buy for yield.

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