EDINBURGH Hibernian plc, the public company set up more than a year
ago when supporters of the Premier League side bought up the two million
55p shares on offer, has lost more than #500,000 in its first year of
trading, it was revealed yesterday.
In March the company raised #3m with a rights issue to finance the
purchase of Avon Inns, a #5m hotel restaurant and pubs group in the
South-west of England with its head office in Bath. Only 220 of the
original shareholders, mainly Hibs fans, took up the offer.
According to the company's results published yesterday, shareholders,
who have seen the value of their original investment fall to 33p per
share, will receive no dividend. After the flotation in October, 1988,
the shares rose to 71p but fell again by 11p as a result of the rights
issue.
The company's turnover was #1,782,000, which after interest payments
of #288,000, produced an operating loss of #501,000.
Mr David Duff is chairman of both Edinburgh Hibernian plc and the
football club, but is mainly responsible for running Avon Inns from the
office in Bath.
Last night the board of directors claimed in a statement there had
been a substantial improvement in the performance of the company's
leisure interests since the end of their financial year. Several
peripheral leisure units had been sold.
It added: ''The directors are confident in the future development of
the group. If the company were to include the directors' assessment of
player value on the balance sheet, the net asset value would
substantially increase from 37.6p a share to 60p a share.''
Mr Duff has admitted Edinburgh Hibernian plc was keen to redevelop a
20-acre site adjoining the football club at Easter Road, with a view to
preparing plans for a multi-million pound development on the site close
to the city centre.
There have been exploratory but abortive talks with Edinburgh District
Council about the posssibility of Hibs renting Meadowbank Stadium to
play their home fixtures.
In April this year Mr David Rowland, a property magnate and
entrepreneur with offshore interests in Panama and Monaco, became deputy
chairman of Edinburgh Hibernian plc. It was he who financed the takeover
in 1987 of the football club by Mr Duff and his brother-in-law Mr Jim
Gray, the current managing director.
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