BTP makes a killing on bugs
The Investment Column
Tuesday 25 June 1996
The Nipa-Hardwicke insecticides business contributed to an exceptionally strong performance from the dominant biocides and fine chemicals division. Double-digit percentage growth in demand for the bug killers BTP's products go into has been spurred by new applications and their claim to greater environmental friendliness.
BTP has spent $20m (pounds 13m) on Hardwicke since acquisition and last year the plant absorbed over a third of BTP's pounds 21m capital expenditure budget. After a 40 per cent rise in profits to pounds 26.5m and with capacity flat out, the group's decision to spend at a similar level this year looks justified.
Shorn of its storage operations and now the polymers business, the renamed safety equipment division was the other star performer last year. Its world-leading position in supplying safety harnesses and the like to workers in areas as diverse as construction sites and oil rigs meant it was able to cash in on tighter safety legislation in the UK and the US, with operating profits jumping 26 per cent to pounds 8.69m.
Further US legislation is expected to boost sales this year, although it might not do well to rely on Congress to deal with it speedily in an election year.
Poor to dismal performances in BTP's other two divisions, performance chemicals and adhesives and textile coatings, should be reversed in 1996/97. Both suffered badly from last year's well-publicised surge in raw material costs, but prices have since fallen.
Gearing of 7 per cent means BTP is well placed to repeat its success with MTM and is keen to buy. Without a further big buy, profits of pounds 52m this year would put the shares, up 16p at 294p, on a forward p/e of 14. Hold.
Olympic diver has made his modelling debut for Adidas
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing the result either way
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Alan Henning: British Muslim leaders unite to call on Isis to release UK hostage
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...
£20000 - £25000 per annum + OTE £35,000 first year: SThree: The SThree group i...
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...