Denby sets itself a place in US: The Investment Column
Thursday 16 January 1997
The reason for the latest strength was an upbeat annual general meeting statement announcing that sales romped ahead by 15 per cent in the first three months of the year to December. The buoyant current trading picture builds on an impressive record which has seen profits jump from pounds 2.76m to pounds 4.76m in the past three years.
Denby, founded in 1809, has been revitalised by a renewed concentration on design, aiming in particular at the "aspirational" market of young newly-weds and the like. Cleverly pitched just below Wedgwood and Royal Doulton's rather more formal products, Denby has probably rightly assumed that the days of bringing out the best china for special occasions are waning.
But while it continues to add to what it claims is a leading position in the UK, the one-off gains from its refocusing there seem to be largely over. The domestic market has been flat for several years and most of the growth is coming from overseas markets, where Denby seems to be replicating its success.
Although it has been across the Atlantic for most of this decade, sales in the US continue to rise at rates above 30 per cent. It seems that Americans have taken to this type of crockery in a big way and, since September, to Denby's matching glassware range which it reintroduced after a 10- year gap.
The rip-roaring pound could represent a problem if it is sustained. Denby says only a fifth of its revenues are in foreign currencies and an average 7 per cent rise in prices means it is covered up to around $1.64.
But even assuming no sterling impact, an unchanged profit forecast of pounds 6.9m for the current year puts the shares on a chunky forward rating of 20. Hold.
- 1 I was a Woman Against Feminism too
- 2 Fifty Shades of Grey movie trailer released: First look at Jamie Dornan as Christian Grey
- 3 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 The Tory donor whose firm is one of Britain’s biggest tax avoiders - with HMRC's blessing
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Taiwan plane crash: Typhoon Matmo could have caused TransAsia Airways disaster, airline suspects
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£18000 - £20000 per annum + OTE £25K: SThree: SThree Group has been well estab...
competitive: Progressive Recruitment: This really is a fantastic chance to joi...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£60000 - £75000 per annum + BONUS + BENEFITS: Harrington Starr: Business Anal...