Taxable profits for the year to March rose 14 per cent to pounds 11m, ignoring the impact of the flotation on the previous year's figures. Underlying operating profits advanced 16 per cent. Sales marched ahead by 18 per cent, earnings per share are up 17 per cent and the 9p total dividend is 15 per cent better than last time.
Yet at 348p, the share price is at 14 times forecast earnings compared with a electronics sector average of nearer 17.
As with Betterware there are understandable reasons why the shares are out of favour. Shortly after coming to market in the false dawn of economic recovery Kenwood warned on profits and it has yet to shake off the reputation to disappoint.
There are also worries that Kenwood's core UK market is mature, cutting off growth avenue. But 65 per cent of Kenwood's sales are overseas: it is exploiting fragmented markets on the Continent, and is making aggressive moves in the attractive Far Eastern consumer markets. Buy.
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