THE Ryland Group, one of the four largest UK motor distributors and the leading Toyota dealer in Northern Ireland, is coming to the stock market with a placing of 11 million shares at 80p each, an historic price/earnings multiple of 10.6 times, capitalising the group at £22.72 million sterling.
Net proceeds of the placing, sponsored by brokers Albert E Sharp & Co, are £7.48 million.
The money will be used to reduce the group's gearing, to invest in existing businesses and for acquisition opportunities as they arise.
After the placing interests of directors and their families will amount to just under 40 per cent while Montagu Private Equity, a subsidiary of HSBC, will have a stake of almost 11 per cent.
Ryland, founded by the current chairman, Mr Peter Whale's grandfather over 50 years ago, operates 30 BMW, Mercedes, Lexus, Jaguar, Rover and Vauxhall dealerships throughout the midlands, the north west and Northern Ireland.
The Belfast operations comprise the Boucher Car Centre Daihatsu dealership and the two Neville Johnson Toyota/Lexus franchises.
Neville Johnson, the oldest Toyota franchised operation in the UK and one of the largest by unit sales, comprises a main dealership in the centre of Belfast, plus a smaller satellite dealership in the suburbs.
Neville Johnson holds the only Lexus franchise in Northern Ireland and the group also operates as wholesale distributors of Toyota in Northern Ireland for both cars and parts.
To April 1994, Ryland turned in pre-tax profits of £2 million on turnover of £190 million.
Had the shares been listed throughout the year, the directors would have declared a dividend of 3.5p making a gross yield of 5.5 per cent, covered 2.1 times.
