Engineering and technology company, Silvermines, has said it is improving communication with shareholders through the appointment of a new public relations company and stockbrokers.

Silvermines' managing director, Mr Clem Jansen, was responding to two shareholders, one who said that "the provision of information is really relevant", and another who referred to "the mismanagement of information" being "a disgrace".

The latter shareholder said that, with the signing of the joint venture agreement with Echlin, a producer of automotive products, in April 1997, the share price had slipped from 82p to 68p. Echlin Europe maintained 51 per cent control of Automotive Motion Technology, the joint venture company which was established.

He said there was no reference to the impact as a result of Echlin's merger with Dana Corporation, which was announced on May 4th.

Referring to the £4.5 million acquisition last December of Active Imaging, a manufacturer of digital imaging products, he questioned the rights issue "at a time when group gearing was at a low level". "The share price, I am now glad to see is starting to rise," he added. Mr Jansen replied that, in relation to the Active Imaging deal, the board had taken the view that "we had better conserve the cash and issue shares". He added that, since January, Active Imaging, was making a profit for the first time. "There was no financial accounting that accounted for that. That was genuine trading," he said.

He said that the services of Murray Consultants and Davy Stockbrokers were now being employed by the group. "It is a valid criticism that Silvermines, only because it is growing by acquisition at such a rate, has not been understood by a lot of people," he said.

The effect of the Asian crisis was to reduce turnover in its closed circuit TV sector, which had an effect on Silvermines's share price. "The downgrade we got was because the growth in south-east Asia did not happen," he said.

But a presence was maintained there and, in May, a £1.75 million contract was secured in Singapore and a £500,000 one in Hong Kong, he said.

Silvermines increased its pre-tax profits in 1997 to £5.6 million sterling, from £4.1 million in 1996.