Projected profits may turn Clark bid

THE struggle for control of C&J Clark, the shoe maker and retailer, will intensify this week on news that directors expect to see improved profits over the next three years.

Shareholders are split over whether to accept a pounds 184m bid from Berisford International, which is being recommended by the majority of Clark's board.

But the Independent on Sunday has learned that the directors expect a leap in pre-tax profits this year from pounds 1.7m to between pounds 15m and pounds 16m, with further growth after that.

Clark shareholders could therefore see a substantial dilution in their earnings if they accept Berisford's share offer. It would make Berisford's cash alternative more appealing.

In talks to potential bidders, members of Clark's board forecast that pre-tax profits for the year ending 31 January 1994 could top pounds 15m. Based on this figure, Clark shareholders could expect to see earnings rise from 0.6p to about 13p.

But if Clark is taken over by Berisford,earnings could drop by almost 50 per cent to 7p.

Hugh Pym, spokesman for dissident shareholders, said: 'We must look closely at these figures, but they would make Berisford paper far less attractive.'

Berisford has offered 239p per share, but this includes 26p of deferred cash based on the sale of surplus Clark properties.