There are good reasons to keep faith

There are good reasons to keep faith.
In themselves, yesterday’s sketchy, unaudited numbers included in Gencor’s full year figures to June, were no more than reassuring. Unsurprisingly Billiton beat its own US$330m flotation forecasts, reporting pre-tax profits up 4 per cent to $335m. The 43 per cent jump in aluminium profits, over 45 per cent of the total, to $193m reflected full inclusion of associate Alusaf and the fall in ferro-alloy profits was flagged. The company has published illustrative profit forecasts of pounds 1.875m on sales of pounds 6.5m for the year to September 1998..

edited by Sameena Ahmad

After a shy start, shares in Billiton, the base metals company recently demerged from South Africa’s Gencor, are gaining confidence. Floated at 220p at the end of July, Billiton’s share price closed yesterday at 248p, pushed 6p higher by competent pro forma full-year figures and positive noises from analysts. If the London flotation is successful it is considering a secondary listing on the US Nasdaq market.The group aims to market the product in the US and Europe on QVC, the home shopping channel and on “infomercials” starring Mr Lewis.It aims to sell 200,000 bikes a year within two years. It is like graduating from high school and it is easier as I have had such a great career,” he said.Trialtir raised pounds 160,000 via a private placing earlier this year to develop the bike and plans to raise another pounds 1m on flotation. The only reason I run is for passion and from my standpoint the passion is no longer there,” he said.He plans to continue his lucrative association with the sportswear giant Nike and is planning to get involved with other entertainment and business opportunities “I am looking forward to my retirement [next month]. On Tuesday he crowned his glittering international career by anchoring a US 4×100m relay team to victory in Berlin, his last European track appearance.Mr Lewis denied he would be tempted to return to the track against some of the world’s current sprinting greats for one last big pay day “Financially things are fine.

I use it to take my dog out for a run and the bike goes everywhere; on hills, sand or just the street.”This is the first business venture Mr Lewis has become involved with since announcing his retirement from athletics. The cyclist can activate the new action, which drives both wheels, by flicking a switch on the handlebars, making it easier to go up hills or pedal over rough terrain.Mr Lewis said at a press conference in London: “This is something that could change the way we think about health and fitness I have had the bike for over a year and use it every day. The directors will also be eligible for a share-option scheme but Trialtir has no plans to make Mr Lewis a director and he will not receive any options.The mountain bike has a unique dual-action system which means that cyclists can pump their arms up and down as well as pedalling to set the wheels in motion. She will own 50 per cent of the company which is likely to be valued at around pounds 8m. He will receive a royalty on every bike, which retails for US$500 (pounds 310), in return for starring in a world-wide advertising campaign.
Robin Kesner, Trialtir’s largest shareholder and its American chief executive, stands to make a paper profit of up to pounds 4m on flotation. Mr Lewis likes the new bike so much he indicated he was looking to buy shares in the company when it floats on the AIM market next month. Billiton, the base metals company, announced pro forma full-year profits to June up 4 per cent to $335m (pounds 208m).

The figures, which were included with the results of Gencor, the South African precious metals giant which demerged Billiton, were $5m ahead of the company’s own forecasts when it floated at 220p in July. Aluminium profits grew 43 per cent to $193m, driven by the consolidation of associate Alusaf. Steel and ferroalloy profits dropped 83 per cent to $19m due to falling ferrochrome prices

Investment column, page 18. Carl Lewis, one of the world’s greatest athletes and winner of nine Olympic gold medals, yesterday took a break from the track to launch the flotation of Trialtir, a company which has developed a revolutionary mountain bike used by the sports star.