Spring Ram dives into heavy loss

SPRING RAM, the Yorkshire- based kitchens and bathrooms group, yesterday confirmed details of a horrendous financial year to 1 January, writes Robert Cole.

The company, which issued three profit warnings between December 1992 and May 1993, made bottom-line losses of pounds 40m. After-tax profits last time were pounds 13.2m.

Pre-tax losses were pounds 36.4m compared with profits of pounds 21m. However, the 1992 figure was restated down from pounds 26m. Most of the losses were incurred as the new management reorganised the finances. Roger Regan, the chairman, was parachuted in after shareholders, led by Prudential, pressed for changes.

Spring Ram lost pounds 30m in one-off charges on a variety of problems ranging from over- valued property and stock to sorting out financial irregularities at one subsidiary.

Ignoring the one-off charges, underlying losses were pounds 6.7m against profits of pounds 16.5m. However, the company said losses were reduced in the second half.

Turnover rose by 24 per cent to pounds 239.5m, benefiting from an acquisition and sales generated by a start-up venture.

Most of the information released with annual results yesterday was outlined in January when Spring Ram launched a rights issue to raise pounds 42m.

The shares rose 4p to 67p.