Record profits at Astec
Wednesday 30 August 1995
Pre-tax profits from the Hong Kong-based, London-quoted and 49 per cent American-owned company, rose 35 per cent to pounds 9.9m at the half-way stage from sales 16 per cent higher at pounds 174.3m. Earnings per share of 2.6p were 28 per cent up and the dividend increased by 25 per cent to 5p.
Astec said its sparkling performance was because of the record number of new products introduced across the company as well as an underlying strength in the market, which received a further boost last week with the launch of Microsoft's Windows '95 operating system.
It even blamed a rising tax charge, up from 15 per cent to 19 per cent, on better-than-expected growth in Japan and Europe. Tax losses, which were still being used up in 1994, also dropped out of the equation.
The price to be paid for rapid growth included a cash outflow during the half-year of pounds 2.1m, partly attributable to rising stocks of raw materials that the company built up because of supply shortages. Despite the outflow, net cashincreased from pounds 14m to pounds 20.1m.
Sales from the Power Conversion business totalled pounds 135m, up from pounds 119m, benefiting from the company's low cost base in China. Profits were a fifth higher at pounds 7.1m. Astec also started production in the Philippines and signed up a distribution agreement with a Japanese electronics manufacturer.
Sales from Electronic Components rose 26 per cent to pounds 39.2m. Operating profits were 72 per cent better at pounds 2.3m.
- 1 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 2 Frank Lampard's face drops when Holly Willoughby introduces him as a 'Man City legend'
- 3 UK weather: Britain braced for snow as arctic air mass moves in
- 4 Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
- 5 General Election 2015: Stephen Hawking says he will vote Labour
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Aaron and Melissa Klein: Oregon anti-gay bakers ordered to pay $135,000 after refusing to make cake for same-sex wedding
Andrew Lloyd Webber: Phantom of the Opera writer mocked after issuing a warning about Ed Miliband and Nicola Sturgeon
General election 2015: Labour will toughen hate crimes legislation surrounding Islamophobia
HSBC review into moving headquarters from UK 'underway'
iJobs Money & Business
£20000 - £60000 per annum: Recruitment Genius: Are you recently QCA Level 4 qu...
£20000 - £22500 per annum + OTE £30K: SThree: SThree Group have been well esta...
£25 - 30k: Guru Careers: We are seeking an Application Support Analyst / 1st L...
£45K - £55K (DOE) + Benefits: Guru Careers: We are seeking a full stack .NET D...