Investment column: Wyndeham
Tuesday 02 November 1999
Wyndeham, like rival St Ives, has been investing in new technology to satisfy clients' demands for faster and more flexible print runs. Printing magazines accounts for around 75 per cent of sales, and organic growth here is running at 12 per cent. Four-fifths of mags contracts are repeat business. To remain competitive, the group is investing pounds 11m this year, less than last year's pounds 15m. Gearing has risen from 49 per cent to 58 per cent.
However, Wyndeham's other businesses, which produce promotional brochures and labels for one-cup tea bags, are altogether less sexy. Contracts are erratic and some customers, such as charities, are cutting back ahead of the millennium. Including these businesses, group organic growth was just 3.5 per cent in the period.
Meanwhile, Bryan Bedson, chief executive, says he's eyeing up sizeable acquisitions which will be earnings enhancing from day one. His track record supports the claim.
After last year's hammering, Wyndeham shares have more than doubled as both cyclicals and small-cap stocks have returned to favour. Deutsche Bank has downgraded its pre-tax profits forecast by pounds 1.6m to pounds 14m, giving earnings per share of 22.8p. The shares, down 5p at 312.5p, trade on a forward p/e of 14. That's a premium to the sector which looks unjustified given the sluggishness of a quarter of Wyndeham's business. Sell.
Jo from Northern Ireland was less than impressed by Russell Brand's attempt to stage a publicity stunt
When teaching the meaning of Christmas backfires
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
Shock poll shows voters believe Ukip is to the left of the Tories
New era of cheap oil 'will destroy green revolution'
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Ukip founder Alan Sked and Nigel Farage 'begged Enoch Powell to stand as a candidate'
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
iJobs Money & Business
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...
$125 - $175 per annum: Carlton Senior Appointments: Senior Wealth Manager In...
$200 - $350 per annum: Carlton Senior Appointments: Managing Producer Office...