Future set fair at David Brown for
Friday 13 October 1995
The record since then has been impeccable, with profits rising from pounds 3.85m in 1991 to pounds 12.5m last year, and half-way results to July show no sign of any let-up - the pre-tax figure is up 15 per cent to pounds 6.57m.
Despite the rights issue at 205p that accompanied May's move to mop up the remaining David Brown family-owned engineering companies, underlying earnings per share have moved up 12 per cent to 7.4p. The company is holding to its forecast that the four companies will be earnings enhancing in a full year. A reorganisation should see margins, now around 7 per cent, lifted closer to the group average of over 10.
More of a disappointment in the half year was the heavy pumps business, which saw profits dive 35 per cent on sales down 39 per cent. Management blames the timing of sales and technical specification changes by its Far Eastern customers, but with record order books and recent strong trading it is cautiously optimistic of making up the lost ground in the second half.
Another historic under-performer, the Radicon industrial gearbox manufacturer, is responding well to the introduction of new ranges and a pounds 3m investment programme will double capacity over the next 12 months.
Future group sales are almost completely underwritten by order books now standing at an all-time high of pounds 132m. Added protection is derived from Brown's lessening dependence on the domestic market, which has been cut from 70 per cent five years ago to just 16 per cent now - just as well, as the latest industry survey points to a further slowdown in growth.
Profits of pounds 15m before an expected pounds 1m reorganisation provision this year would put the shares, unchanged at 220p, on a prospective multiple of just under 14. About right.
- 1 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 2 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 3 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
- 4 John Travolta addresses former pilot's gay romance allegations publicly for the first time
- 5 Kanye West stops concert after two fans don't stand up - doesn't realise one is in wheelchair and the other disabled
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Scottish independence: Police will be on high alert on Friday whatever the result
John Travolta addresses former pilot's gay romance allegations publicly for the first time
QS university world rankings: Imperial College London leapfrogs Oxford to join Cambridge as best British university
Scottish independence exclusive: Millions of banknotes sent to Scotland in case Yes vote sparks run on ATMs
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
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
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
Portuguese academic says British are 'filthy, violent and drunk'
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
iJobs Money & Business
£20 - 24k (Uncapped Commission - £35k Year 1 OTE): Guru Careers: We are seekin...
£20 - 24k + Benefits: Guru Careers: This is a great opportunity for an enthusi...
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...