BM sells remainder of British Building

THE STRUGGLING construction equipment supplier BM Group has sold its 75 per cent stake in British Building & Engineering Appliances, the construction services concern.

The sale raises pounds 16m for BM, whose primary difficulty is heavy debt. BM placed the shares among about 30 institutional investors at 190p - less than half the level achieved when it sold the first 25 per cent in June last year.

BM also said yesterday that the flotation of Austoft, its Australian maker of sugar cane processing machinery, had contributed another pounds 13m. The combined pounds 29m brings debt down to about pounds 80m.

BM is a former stock market star which grew quickly, making a string of aggressive acquisitions under the chairmanship of its founder, Roger Shute. He left in June 1992 and the shares, which were trading above 400p in late 1991, slumped. Yesterday they rose 0.5p to 21p.

British Building published results for the full year to 30 June yesterday, the first since the company was given partial autonomy by BM last year. The figures include a first- time contribution from BM businesses injected at that time.

Turnover jumped to pounds 43.4m from pounds 7.8m. Taxable profits were pounds 2.3m compared with a loss of pounds 1.3m. Earnings per share were 14.2p against losses of 60.2p.

David Hewlett, managing director, said he wanted to build a cash- generative company occupying markets on the periphery of the construction industry. He would like to grow by acquisition.

British Building is paying a final dividend of 5.5p, making 8p for the year. It paid nothing last time. The shares were unhanged at 245p.