Impelled largely by a pressing demand for their new “2000” model, the Rover Company are to make a cash call on shareholders with a rights issue -to raise about £2m. According to Mr. L. Farmer, the new chairman, in his annual review, the fresh funds are required in the light of the need to expand production facilities and of the group’s present prospects. Another four million ordinary 5s. shares are to be created. The market price of the existing shares yesterday was 15s. 9d. The chairman’s statement was not released in market hours.
Sales of the company this year may well reach a new peak-as they did in the year under review. That is the strong hope of the chairman, though it is subject to no unforeseen difficulties or serious disruption in production Demand for the “2000” model is so good that the board’s problem, apparently, is to build up output quickly enough during the coming months to meet it. Meanwhile, sales of the 3-litre, 95 and 110 cars remain satisfactory; manufacturing capacity for Land-Rovers is fully employed, and as demand is increasing the board are thinking of expanding production facilities for these too.
Lovedin George Farmer, chairman said that sales of the new Rover 2000, were selling so briskly “that our problem will be to build up production sufficiently quickly during the coming months to meet the demand. And since the demand for Land-Rovers is increasing with existing production capacity already working full out, the board is considering expanding production facilities for these vehicles……..I have every hope that, subject to no unforeseen difficulties or serious disruption in production, sales for the present year will reach a new record level.”