Archive : Government puts £75m more into BL

BL has received a further tranche of £75m of public funds towards the total of £300m earmarked by the Government for the company’s 1980-81 new model and rationalization plans. The cash, raised by the issue to the National Enterprise Board-BL’s parent company, of 150 million BL 50p ordinary shares, represents half of the £150m of state handouts upon which BL is authorized to draw this year on evidence of need.

The latest injection of Government money comes two weeks after Sir Michael Edwardes, the BL chairman, told the annual meeting that after last year’s pre-tax trading loss of £122.2m further losses this year were inevitable. Strikes in the United Kingdom, high interest rates, high inflation and a strong pound have put considerable pressure on the company’s cash flow.

Keith Adams
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