Ports group claims transfer support

Published on Thursday 3 May 2007 00:12

FORTH Ports yesterday said its handling of controversial proposals to allow ship-to-ship oil transfers in the Firth of Forth had the full backing of major shareholders, including F&C Asset Management.

The company made the assurance at its annual investor meeting in Edinburgh, where it also outlined steady first-quarter trading. Shares in Forth Ports closed 18p higher at 2,026p.

Chief executive Charles Hammond made it clear that no decision had yet been taken to allow the transfers, which face resistance from environmental groups and local councils.

He said: "We have regular meetings with our shareholders about all the projects we are involved in, and all the major institutions are supportive of the approach which we take to assessing long-term projects and are entirely satisfied with the process that we are following on this particular project."

His remarks followed news this week that F&C may cut its holding in the ports and property group if the transfer plans are given the green light. The fund manager has a 7 per cent stake in the Leith-based business.

Other large shareholders include Threadneedle Asset Management, with an 11.6 per cent holding, and Schroder Investment Management on 8.6 per cent. Standard Life owns 3.2 per cent.

SPT, the company that is hoping to undertake the transfers, insists that its plans are safe.

However, objectors to the scheme fear an environmental catastrophe in the event of any oil spillage.

As the UK's last remaining listed port operator, Forth Ports has been plagued by takeover rumours in recent months.

Speaking after the meeting, at which all regular and special resolutions were passed, Hammond said the speculation was "no distraction" for the management team.

He said: "What I'm focused on is delivering our major developments and projects. That's what will create value for shareholders, that's my job and the job of the executive team, so as far as I'm concerned there are no distractions."

Forth Ports is working on ambitious plans to transform hundreds of acres of land on the Edinburgh waterfront into new housing, retail and leisure facilities.

An outline planning application is due to be lodged shortly for the redevelopment of Leith Docks - a move described yesterday as the "largest long-term expansion of the city for over two centuries".

Responding to a question on dividend policy, Forth Ports chairman Christopher Collins said: "We are taking a long-term decision to running the property side. Although there are not short-term profits coming through to the extent that they were under our previous property strategy, value is accruing through that."

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