Archive : Rover Plan £2m Rights Offer

Carole Nash Classic Insurance Specialists

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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.”

Keith Adams

Keith Adams

Editor and creator AROnline at AROnline
Created www.austin-rover.co.uk in 2001 and built it up to become the world's foremost reference source for all things BMC, Leyland and Rover Group, before renaming it AROnline in 2007.

Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...

Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.
Keith Adams

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