Bottom Line: No cause for alarm
Thursday 05 May 1994
The acquisitions, Danka's first overseas, took pre-tax profits up 83 per cent to pounds 32m in the year to 31 March. Sales rose 86 per cent to pounds 347m, with the 29 acquisitions accounting for just under a third of the total.
Listed in London for tax reasons, the American photocopier group has a good takeover record at home. The European copier market, estimated at dollars 20bn, is only two-thirds the size of the US market but is growing faster. It is just as fragmented as America's.
Danka's pounds 9m purchases of Saint, based in Hull, and three smaller British companies have given it pounds 35m in UK sales, 3 per cent of the market. There is clearly scope to build on the economies of scale in administration, sales and servicing.
Rapid technical change in photocopiers and fax machines is helping the market grow. With customers of the US newcomer billed monthly on their renewable one-year contracts, it is not difficult to persuade them to upgrade - especially with the American emphasis on quality service.
Danka rewarded shareholders with an 11 per cent rise in 1993 earnings per share to 11.8p and a 33 per cent increase in the dividend. The share price rose 5p to 335p.
The earnings figure for the current year will be about 14p. That puts Danka on a fairly demanding prospective price-earnings ratio of 23, but the growth prospects and its US acquisition experience justify it.
- 1 Tourist films plane's descent just metres above packed Caribbean beach
- 2 Kate Moss: Previously unpublished nude photo revealed by Mert and Marcus
- 3 Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
- 4 World Book Day: Boy 'excluded' from school after dressing up as Fifty Shades' Christian Grey
- 5 Bad Jews poster 'censored' on London Tube
Tourist films plane's descent just metres above packed Caribbean beach
Indian woman creates 'Marriage CV' after parents put her on dating site: 'Definitely not marriage material. Won’t grow long hair, ever'
Becky Watts: Four appear in court charged with hiding body parts after teenager's death
Isis 'bulldozes' Nimrud: UNESCO condemns destruction of ancient Assyrian site as a 'war crime'
Professor Brian Cox brands astrology-believing Tory MP David Tredinnick an 'outlier on the spectrum of reason'
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Durham Free School: 'Creationism taught at' free school facing closure
End of the licence fee: BBC to back radical overhaul of how it is funded
Elif Shafak: Turkish author warns against rise of British nationalism
Most people think legal tax avoidance is just as wrong as illegal tax evasion, poll suggests
Nigel Farage promises Ukip will not 'stigmatise' would-be migrants – and says he wants 'everyone to speak the same language'
iJobs Money & Business
£13000 per annum: Recruitment Genius: This is an exciting opportunity to join ...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£12 - £15 Hourly Rate: Jemma Gent: In this role you will report to the Head of...
£8 per hour: Recruitment Genius: This Pension Specialist was established early...