At yesterday’s price of 549p, down 9p, the shares trade on a prospective price/earnings ratio of 13 falling to 12. They deserve a premium to the sector and, despite their strong run since 1992, still have some way to run.. While assuring shareholders yesterday that profits would enjoy another good year of progress in 1996, CRH warned that it would be unrealistic to expect recent growth rates to be repeated.That translates into forecasts of Irpounds 185m this year and Irpounds 205.5m next time for earnings of 41p and 45.6p respectively. The company promises continued high levels of investment for the foreseeable future but analysts think the ratio of borrowings to net assets will remain broadly unchanged this year as well.For investors that is a reassuring strength in the face of what promises to be a difficult year. Despite spending Irpounds 215m on acquisitions and capital investment, borrowings ended the year only Irpounds 18.5m higher at Irpounds 150.6m to give an unchanged gearing figure of 21 per cent. Pre-tax profits jumped 38 per cent to Irpounds 160m, earnings per share were 35 per cent better at Ir35.6p and the twelfth consecutive rise in dividend: a 12 per cent improvement to Ir9.1p.
In the face of difficult markets in the UK and a progressive slowdown in the US and Europe that was an impressive performance – and confirmation that even in difficult markets quality companies such as RMC, Wolseley and CRH can make a good living.One of the most impressive features of CRH’s growth over the years has been the way the company has managed to expand largely out of internally generated cash flow.

Figures for the year to December showed a second successive year of buoyant growth. CRH learned its lesson in the early 1980s when exposure to the collapsing Irish economy left the building materials company high and dry. Since then a single-minded focus on costs, geographical diversity and cash generation has yielded an impressive record of steadily rising earnings and dividends through thick and very thin. Credit Suisse also has the right to appeal against the ruling on garden leave.The appeal will be held in open session and is expected to bring into the open details of the clash of cultures, which replaced traditional broker-client services and single fees with a centralised system with multiple charging structures.. The nine stockbrokers have launched an appeal which is due to be heard in about a fortnight.

But Mr Steel also ruled that restrictive covenants in the nine contracts, preventing the individual brokers from having contact with clients they had dealt with at Credit Suisse for up to 12 months, are enforceable.This ruling means that up to 700 private clients who have transferred their business from Credit Suisse to James Capel to stay with their long- standing advisers could be denied access to them for a further six months. The Deputy Judge, Mr David Steel, ruled that their skills could begin to atrophy if they were unable to work anywhere for a full year as Credit Suisse demanded, and six months was the maximum reasonable period for gardening leave.If the judgment is upheld, it could set a precedent in situations that are becoming increasingly common. Bluebird expects only limited sales this year but larger volumes in 1997.. CLIFFORD GERMAN

Nine private client stockbrokers who resigned from Credit Suisse Asset management last August over what they called a clash of cultures, and were immediately sent on “gardening leave” which prevented them working during their notice period, have won the right at a High Court hearing to start work immediately with their new employer, James Capel.
Although six were on 12-month contracts, which are common in the City, notice is usually worked in full or part. It has also signed deals with Hasbro for a Batman range and Marvel for Spiderman toys.It has high hopes for a new idea called Space Monkeys, which will be launched this year and is based on an animated TV programme, Captain Simian and the Space Monkeys.

The Peter Pan range will shortly include electronic diaries and other hand-held electronic toys under the Bluetech name.Bluebird has recently signed deals with Mattel and Walt Disney to develop miniature play-sets featuring Disney characters. However the fall in profits was in line with expectations and the shares fell only 6p to 311p.Pre-tax profits for the year to December fell from pounds 19.7m last year to pounds 17.8m this time. Sales were also down 12 per cent to pounds 87m, though the dividend was increased by 12.5 per cent to 6.75p.The Polly Pocket girls’ range performed strongly as did Peter Pan, despite dull trading in many markets. The toy market now is all about power brands and you can’t just buy those.”Bluebird had a tough year in 1995 as its popular Mighty Max range of boys’ toys ran out of steam and Mimi and the Goo Goos performed below expectations. A spokesman said: “There is no point in spending the money on buying dud toy companies.

NIGEL COPE

Bluebird Toys, the Polly Pocket and Mighty Max toy group, announced a fall in profits yesterday alongside plans for a pounds 10m share buy-back.
The company currently has pounds 34m of net cash and will be seeking shareholder approval to repurchase the shares. Lucas’s chief executive, George Simpson, recently forecast a wave of mergers in the car components sector, but the company yesterday declined to comment on the Valeo speculation.Mr Calvet said he wanted to see French ownership of Valeo, the country’s largest parts supplier and Europe’s second largest “I want Valeo to remain French. I will do everything to ensure that,” he told Reuters news agency.The chairman of state-controlled Renault, Louis Schweitzer, said he would be alarmed if a change of Valeo’s ownership affected its relationship with his company.The Peugeot group and Renault are Valeo’s two biggest clients, accounting for around 35 per cent of its sales last year, worth more than Fr25bn (pounds 3.3bn).Lucas would need a huge rights issue to fund a Valeo purchase, and the company may also attempt to raise money by selling its aerospace division.Meanwhile, in Geneva yesterday, the president of General Motors Europe forecast that unemployment and the poor economic outlook would depress car sales across the continent this year.But GM’s European operations would command the largest tranche of the group’s capital expenditure over the next five years, with Opel receiving about $6.3bn pounds 4.2bn) and Vauxhall, the UK division, about $1bn.GM is also believed to have reached an agreement with Sweden’s Investor to refinance their jointly-owned car maker Saab.. “And that is final,” he said.Mr De Beneditti owns 28 per cent of Valeo but controls 42 per cent of the voting rights.