Investment Column: Bad news is good news for AEA
Tuesday 02 December 1997
The fight against global warming is one reason why AEA, which yesterday reported half-year operating profits to September up 41 per cent to pounds 9m, believes it can double turnover to pounds 500m by the turn of the millennium.
Environmental engineering already accounts for one-fifth of group turnover, with clients including most of the oil majors, and looks a good bet for further expansion.
Other growth opportunities include the railways, where AEA is working with Railtrack on new train safety systems, nuclear science, engineering software and batteries.
Just 15 months after flotation, AEA, which once relied on contracts from its former parents for more than half its turnover, is unrecognisable. The lithium-ion battery business - AEA has the rights to license the world's biggest producers - remains the mainstay of the technical products division and negotiations are under way with a Japanese partner to establish a plant in the UK producing rechargeable batteries.
After splashing out pounds 40m to buy Hyprotech, a US process software business, and the environmental engineer ERG in the past six months, the pace of acquisitions may slow. But interest cover of 12 times leaves AEA with sufficient firepower.
AEA should make pounds 29m in the full year, putting the shares, up 1p to 436.5p, on a forward multiple of 19. The group has lost its premium to the engineering services sector. But the shares, now 60 per cent above their issue price, could be due a rerating if Kyoto proves the CO2 cloud with a silver lining.
The Washington Post editor helped Bob Woodward and Carl Bernstein bring down President Nixon
Children's bookseller wins The Independent's new author search
Board creates magnetic field to achieve lift
- 1 Salisbury ranked seventh-best city in the world to visit in Lonely Planet’s Best in Travel 2015
- 2 Disney announces new female-led film Moana
- 3 Banksy arrest hoax: Internet duped by fake online report claiming artist's identity has been revealed
- 4 Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
- 5 Russell Brand threatened with arrest after filming outside Fox News headquarters
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Residents should throw a street party and mix with immigrant neighbours, councils told
Russell Brand threatened with arrest after filming outside Fox News headquarters
London bus driver 'kicks gay couple off for kissing'
Jose Manuel Barroso warns David Cameron against making 'historic mistake' over immigration reforms
Worst Airports of 2014: Poll names Islamabad airport in Pakistan worst in the world
iJobs Money & Business
£23000 per annum + pension and 22 days holiday: Ashdown Group: An established ...
£27000 per annum + pension, 22 days holiday: Ashdown Group: An established ind...
£23000 - £26000 Per Annum: Clearwater People Solutions Ltd: Our client is curr...
£25 - 30k: Guru Careers: A Corporate Actions Administrator / Operations Admini...