Despite the rush of fund raising over the past year or so, there have been few all-equity rights issues in the property sector.
Scottish Heritable Trust is breaking the near embargo on such issues by coming to its shareholders for £16.5m, all in equity, to refinance short-term debt.
It is offering 7.92m new shares at 215p each on the basis of one new share for every four currently held. The new shares will not rank for the recently recommended final dividend of 2.4p payable in respect of 1986.
Managing director Robin Garland explains that, in recent years, the company has made a number of acquisitions most of which have been financed to some extent with cash.
In the last two years, $HT has acquired seven companies for which the purchase consideration involved a cash element of £6.7m and absorbing borrowings of £12.6m.
Group debt had risen to £18.3m at the end of 1986, and it is to cut that burden, and to provide flexibility for further development, that the rights issue is being made.
The group is involved in several industrial activities, but the property division has expanded considerably and requires additional capital to take advantage of the opportunities available to it.
With the exception of Hoskins, all divisions are trading strongly and the new US acquisition. Haven Homes, is trading particularly well.
Analysts are looking for a profits figure around £8m for 1987 compared with the £6.2m of 1986.
