GARDNER Merchant, the contract catering business owned by the
hard-pressed hotel and leisure group Forte, has created 90 jobs in
Scotland in the past month. The company now employs more than 4000
people in Scotland across 300 sites.
The business has grown as Gardner Merchant and has won 20 new public
and private sector contracts so far this year. Turnover in Scotland last
year was #41m with the group providing a range of management services,
including contract catering, porterage, security and cleaning.
Several key management appointments have been made in the Scottish
business. Among them Michael Ball has been appointed regional director
for the east of Scotland, and Richard Muir has been promoted to sales
director (Scotland).
Area director Willie Dewar said: ''These appointments further
strengthen our existing senior management team in Scotland and reflects
our commitment to providing an unequalled level of service and support
to our existing and prospective clients.''
The jobs news comes as speculation continues to surround the future
ownership of the Gardner Merchant business. In July, Forte abandoned the
proposed sale of the business to the rival Compass group, the two sides
unable to agree on price. The deal would have made Compass the biggest
supplier of staff canteen meals in the UK.
Forte's finance director, Donald Main, said yesterday that a sale was
''certainly not imminent''. He said the company was continuing to assess
some of the many offers it has received for Gardner Merchant. The
business is now up for sale minus its airport services arm which is
thought to be worth around #130m if it was floated on the Stock
Exchange.
The most recent speculation concerns French caterer Sodexho, which is
rumoured to have offered about #400m for Gardner. Canteen Corporation of
the US and the French hotel group Accor are also thought to be
interested. It is not out of the question that Compass could re-enter
the fray despite its unsuccessful previous offer of #530m.
Forte is currently in its closed season ahead of half-year results due
on October 1. City analysts believe it could be six months before any
sale of Gardner is completed.
Forte is keen to concentrate on hotels, restaurants and Continental
expansion. However, its businesses have been badly hit by the recession.
This, together with the failure to sell Gardner, has piled pressure on
the shares which yesterday lost 3p to 127p.
Profit forecasts have been downgraded with the City now looking for
#90m in the current year compared with earlier forecasts of #140m. With
1992 earnings per share expected to be 7p, the company's prospective
price-earnings ratio is still expensive at 17.6 times.
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