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.
South Korea ferry passengers who were told to stay put 'got trapped' aboard sinking ship
Are beards attractive? Ryan Gosling says yes, but science says no. Take the A-list facial hair challenge and find out who's right
Malaysia Airlines MH370 co-pilot's phone 'was on and made contact with network tower' 30 minutes after plane turned around
Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
Oscar Pistorius trial: Defence witness 'unqualified' to testify
The food poverty scandal that shames Britain: Nearly 1m people rely on handouts to eat – and benefit reforms may be to blame
US Navy christens huge $3 billion destroyer ship USS Zumwalt that appears as a fishing boat on enemy radar
Scottish independence: It is the English who should be on their knees, begging the Scots to vote ‘No’
Nigel Farage fatigue? Half of voters ‘immune’ to Ukip’s appeal
Nigel Farage on Have I Got News For You: Ukip leader ridiculed over expenses and party 'fruitcakes'
Nigel Farage: I’m taking on the status quo, and the Establishment’s fighting back
- 1 Poveglia: 'World's most haunted island' up for sale...is anyone brave enough to buy it?
- 2 Babies cry at night to stop mothers procreating, scientists claim
- 3 24 people applied for the 'world's toughest job', here are their interviews
- 4 Andre Johnson: Wu-Tang Clan-discovered rapper severed his penis and jumped from LA building
- 5 Mrs Doubtfire 2: Robin Williams set to star in sequel to 1993 comedy
iJobs Money & Business
£150.00 per week: QA Apprenticeships: This company has been providing on site ...
£221.25 per week: QA Apprenticeships: This company is a well established Inter...
£40000 - £50000 per annum: Harrington Starr: Client Relationship Manager - SQL...
£35000 - £50000 per annum: Pro-Recruitment Group: Take your chance to join the...