Spring Ram is continuing to recover slowly by returning to its core business of kitchen and bathroom products.

Hence the sale of Stag Holdings, a loss-making furniture business, to its management for £4.25m was welcomed by the market.

Stag was purchased in December 1992 for £12.4m, but poor furniture market conditions have forced the sale. Conditions in Spring Ram's core markets are 'fickle' according to the chairman, but "the company expects to make progress in 1999 even if the market remains as poor as last year".

Stylo's improving share price probably reflects relief by investors that 1999 appears to have started encouragingly, after a series of disasters in recent years.

The results announced on Thursday showed a loss before tax of £14.9m after exceptional costs of £4.7m. Although the company owns 500 shops valued at more than £83m, some are making losses and will be sold. The chairman commented: "while the performance leaves much to be improved upon, there have been some positive areas".

The prices of Ellis and Everard and Fine Art Developments have both improved significantly, reflecting the market's belief that the UK economy will avoid a recession.

Recent news from manufacturing industry in particular has been less dire, and the beneficial effects of lower interest rates will continue to help throughout the year.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.