Bottom Line: Steel bond is strong
Tuesday 06 July 1993
Wearing its own hat, Carclo boosted pre-tax profits 55 per cent to pounds 8.8m. It must be equally pleased with the performance of its new partner. Lee, one of the historic names in British metal bashing, which increased profits from pounds 600,000 to pounds 2.3m.
The real question is how much added value will be produced by the merger. There are immediate benefits, such as the rationalisation of the two head offices into Arthur Lee's premises in Sheffield.
The fact that Lee's chairman, Peter Lee, comes on board at Carclo along with several of his directors shows that this was genuinely a friendly merger. That gives Carclo more depth of management and perhaps provides an answer to the question of who will succeed John Ewart, the 68-year-old chairman.
The enlarged group will also benefit from more purchasing power over raw materials and the merger of the wire businesses is bound to produce economies of scale.
Estimates of combined profits of pounds 12.5m this year are probably on the conservative side.
Such an outcome would leave Carclo at 224p, up 10p, on a p/e ratio of just over 15 - about average for the sector. That makes the shares by no means expensive.
- 1 Amy Winehouse statue unveiled in Camden
- 2 Lego breaks out of the toy box and heads for the gallery
- 5 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
George Galloway on Scottish independence: The political class is doing what Hitler couldn’t – destroying Britain
Daniele Watts: Django Unchained actress detained in Los Angeles after being mistaken for a prostitute
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Scottish independence: Britain faces 'constitutional crisis' at next election
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...