Investors should be encouraged by the strategies unveiled by Dick Brown, C&W’s group chief executive. Plans to raise pounds 1bn from disposal of businesses in which C&W does not have management control pleased the market yesterday.
The figures were a pleasant surprise too. Since the prolonged bout of jitters in the Far East markets, shareholders in Cable & Wireless have had something of a white-knuckle ride. The fund-raising is being backed by NM Rothschild’s Biotechnology Investment Trust, which is investing pounds 6m.

In a complex and novel financing, for every 11 shares held, Vanguard investors will buy a unit for 12.15p, comprising three ordinary shares priced at 4.05p and two warrants exercisable at 500p by 11 December 1998.Vanguard’s directors include Sir David Jack, who as head of research at Glaxo was responsible for ulcer treatment Zantac, once the world’s biggest selling drug and Sir John Vane, the Nobel prize winner who was formerly head of research and development at Wellcome.. Robert Mansfield, Vanguard’s chief executive, said the company, with pounds 33m cash in the bank, needed the money to attract partners for newer projects. “We need to be able to reassure big pharmaceutical companies that we have adequate resources.” He said the money would be sufficient for three years’ R&D. Vanguard’s lead product is an anti-migraine drug, due to be submitted for approval next year, but it is working in other areas, including asthma and psoriasis.
Analysts said that the fund-raising was timely, coming ahead of a likely boom in biotech new issues next year which could drain funds from the market.

Vanguard Medica, the biotech company backed by some of the most famous names in drug discovery, announced it is raising funds worth almost half its market capitalisation for future research. The company is raising pounds 47.9m through a placing and open offer and warrants issue The shares yesterday closed down 12.5p to 432.5p. That episode cost the jobs of several senior corporate financiers at the bank and is thought to have made it hard for Hambros to attract new business and caused a higher than usual attrition rate among its staff.Hambros also warned that its investment arm was likely to suffer from a lower level of disposals in the second half of the year. Successful realisations from Hambros portfolio of direct investments contributed in large part to profits from the operation of pounds 18.3m (pounds 20.4m).Last month Hambros bowed to pressure from rebel shareholder Regent Pacific and appointed its rival Schroders to conduct a review of its operations and advise it on how to improve its performance..

Thanks to the recovery of bad debts, compared with a heavy provision last year, the reported profits from banking rose from pounds 4.1m to pounds 6.5m, but the market focused on the trading performance.Hambros is understood to have suffered since its involvement in the discredited pounds 1bn bid by Andrew Regan, the entrepreneur, for the Co-operative Wholesale Society this year. Insurance Services more than doubled from pounds 4.5m to pounds 9.8m.The core banking and investment businesses saw underlying profits fall, with banking almost halved from pounds 10m to pounds 5.4m. As soon as we are able to make any further statement to shareholders on progress we shall do so.”Profits for the half year to September emerged slightly ahead of expectations at pounds 52.9m (pounds 35m), although the result included an exceptional credit of pounds 6.8m compared with one-off charges last time of pounds 2.9m.The improvement was, however, driven almost exclusively by Hambros’ investments in the Hambro Countrywide chain of estate agents and in Hambro Insurance Services.Profits from estate agency soared on the back of the thriving housing market in London and the South-east from pounds 10.5m to pounds 24.2m. Sir Chips refused to say whether one of the options being considered by the group was to invite a takeover bid.He said: “We recently announced that we are carrying out a review, assisted by independent advisers, of the best ways of improving performance and returns to shareholders. Sir Chips Keswick said yesterday that Hambros “was actively pursuing a number of options” but declined to give any further details of how it planned to improve its performance. The absence of any news, together with disappointing results from Hambros’ core banking business, saw the depressed shares fall another 12.5p to 245p.
Recent speculation has focused on Germany’s Westdeutsche Landesbank, which is believed to have approached Hambros with an informal offer. Minmet added 1p to 6.75p on “encouraging” progress in the Devon gold hunt by its Ofex traded subsidiary, Crediton Minerals, up 2p at 19p United Energy hardened to 18p on a US drilling report.

Gaelic Resources’ expansion programme lifted the shares 0.25p to 3.75p.Acorn Computer held at 145p. Lehman Brothers placed at 130p the 15 per cent acquired from the Italian Olivetti group earlier this year.. Hambros disappointed its shareholders yesterday by refusing to give any details of the ongoing strategic review being conducted for the group by the rival Schroders. Tom Stevenson, Financial Editor, reports on the continuing problems at the insurance, estate agency and banking group.