Family success for Yule Catto: The Investment Column
The pre-tax figure to December, up a tenth at pounds 36.5m, had a fair wind from external factors last year, while underlying growth was perhaps a mite disappointing. The soaring price of raw materials which was such a feature of 1995 started to subside by the end of that year and by early 1996 costs were back to previous levels.
But in a difficult and cyclical sector, Yule has done well with targeted expansion in genuine niche areas and growing markets. It can claim to be number one or number two in the UK in a number of unromantic but important businesses, ranging from PVA emulsions for the paint and adhesives industry to single dome rooflights for buildings. It also has a useful 20 per cent of its business in the Far East, where it has been notching up growth rates in double figures, well over double typical levels in its northern European heartland.
So even with margins of 11.5 per cent in the chemicals operation and 7.5 per cent in building products, there should still be scope to improve.
The real challenge for Yule is what to do with its financial strength. With gearing of just 17.5 per cent and a pounds 25m to pounds 30m capital expenditure programme behind it, the group is looking for acquisitions, but not finding much of value.
Profits of pounds 40.5m this year would put the shares on a forward multiple of 14. One to tuck away, but with the Cattos and Kuala Lumpur Kepong of Malaysia sitting on half the shares, the market is tight.
The Microsoft mogul told fans a few home truths during his Reddit AMA
- 1 Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
- 3 Dad attempts revenge on teenage daughter, plan backfires spectacularly
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Woman falls to her death as she celebrates marriage proposal at the edge of Ibiza cliff
Boris Johnson claims porn-obsessed Islamic jihadists are 'literally w*****s'
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Ball pool for adults opens in London
Amal Clooney gives excellent response to fashion question at European Court of Human Rights
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
Liberal Democrat minister defends comments suggesting immigration causes pub closures
iJobs Money & Business
£40000 - £50000 per annum: Recruitment Genius: This is an exciting opportunity...
£30000 - £35000 per annum + Benefits: Ashdown Group: Marketing Manager - Marke...
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...