Delta takes pounds 11m for changes
Wednesday 13 September 1995
The charge was disclosed alongside much-as-expected half-year results showing pre-tax profits up to pounds 39.5m from pounds 33.5m last year.
Delta said that it is shifting its business in cables away from small- margin commodity products, towards specialty designs with growth potential, and the charge reflects the need to reduce and reorganise capacity. Dr Robert Easton, chief executive of Delta, said the reinvestment in specialty cables should bring an attractive return from the middle of next year. He added that he was surprised by the market's reaction to the news, since "the figures show a solid advance".
The company's engineering profits showed a substantial advance due to increased volumes in the European businesses, and strong export growth. Profits in circuit protection were impacted by subdued UK demand, a high level of development spending and only modest recovery in the important Middle Eastern markets. Cables continued to suffer from extremely competitive trading conditions - hence the decision to restructure - but industrial services produced an encouraging profits advance.
Earnings per share are forecast by brokers to be around 30p for the year, which puts the shares on a multiple of around 15 times, close to the market average. The interim dividend is lifted from 4.3p to 4.5p.
Analysts who met the company yesterday were concerned by the company's less-than-bullish statements about overall trading conditions, which said that prospects were "difficult to read". Dr Easton described the UK market for the company's products as "not brilliant" but also said that prospects overseas appeared to be fine.
X Factor judge will appear in court later this month
The Google future, including microphones in every ceiling and data sent directly to your brain
Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
N Korea confirms removal of Kim Jong-un’s 'depraved' uncle Jang Song Thaek
10 stone five-year-old taken into care
'I'm experiencing austerity as well', says Princess Michael of Kent
- 1 Gurdwaras-turned-food banks: Sikh temples are catering for rise in Britain’s hungry
- 2 Council bans use of word ‘Commie’ – but ‘fascist’ and ‘Nazi’ are fine
- 3 The poorest pay the price for austerity: Workers face biggest fall in living standards since Victorian era
- 4 Newly vegan Beyoncé wears fox fur to dine in meat free restaurant
- 5 'I'm experiencing austerity as well', says Princess Michael of Kent
- < Previous
- Next >
iJobs Money & Business
£44000 - £55000 per annum + Excellent Benefits: Pro-Recruitment Group: Confide...
£25000 - £35000 per annum + Benefits : Harrington Starr: PHP Symfony2 Framewor...
£40000 - £55000 per annum + Bonus and Benefits: Harrington Starr: A leading pr...
£50000 - £60000 per annum + Bonus + Benefits: Harrington Starr: Market Data An...