Sector change on cards

Richard Carr, chief executive of TransTec, the cast products and machining and control equipment company, who is looking to spend up to £200m on acquiring a third interest, could opt for a sector outside engineering. Stockbroker Williams de Broe said an area like building products, which would extend customer range beyond the automotive and aerospace […]

Richard Carr, chief executive of TransTec, the cast products and machining and control equipment company, who is looking to spend up to £200m on acquiring a third interest, could opt for a sector outside engineering.

Stockbroker Williams de Broe said an area like building products, which would extend customer range beyond the automotive and aerospace industries, might appeal to Carr. Whatever the choice, the broker thinks TransTec’s price will mark time until a decision is made, and for that reason it has the shares on hold.

A cash call on shareholders is likely for any sizeable deal, said the stockbroker.

Last year TransTec made £14m on sales of £260m. This year sales of £340m and profits of £20.4m are forecast, and next year £365m sales and £24.5m profits.