TI ready for next acquisition
Friday 04 August 1995
Announcing pre-tax profits up 25 per cent to pounds 87.4m for the six months to June, chairman Sir Christopher Lewinton said TI would stick to its three-year cycle of making a sizeable acquisition, then reducing gearing and integrating the purchase.
It is three years since TI's pounds 600m purchase of Dowty, and gearing has been reduced from 42 per cent last year to just 5 per cent. Debts have been reduced from pounds 136m to pounds 20m, clearing the way for another deal.
"We don't have to do any deals at all due to our strong organic growth," Sir Christopher said, "but we will continue to look for bolt-on acquisitions and look at other opportunities as they present themselves. We are well placed."
One analyst commented: "They are clearly back on the acquisition trail."
The City was impressed by TI's figures. The three main divisions - John Crane, Bundy and Dowty Aerospace - all saw like-for-like sales increase by more than 10 per cent. Profits in all divisions rose more than 20 per cent. Margins have increased from 10.6 per cent to 11 per cent in spite of higher redundancy costs.
However, Sir Christopher said market conditions were mixed and warned that a slowdown in the US automotive markets could affect demand.
Litigation is continuing in the US, where TI has been served with writs alleging that one of its subsidiaries defrauded the US Air Force of more than pounds 12m. TI is vigorously defending the action.
"These are very good figures,"one City analyst said. "The only question is whether TI can reproduce them in the second half." The shares finished 5p higher at 424p.
- 1 What happens to your body when you give up sugar?
- 2 Have sex with your iPad thanks to the new sex toy no-one asked for
- 3 Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
- 4 The 'sex selfie stick' lets you FaceTime the inside of a vagina
- 5 Why you're almost certainly more like your father than your mother
Mark Zuckerberg: Facebook CEO's one simple test for who to hire
Bali nine: Welcome to 'Execution Island' – the Indonesian holiday resort where foreigners are sent to die
'A girl is more responsible for rape than a boy': The statement that shocked the world... except India
The 'sex selfie stick' lets you FaceTime the inside of a vagina
Saudi Arabia executions now at 'unprecedented rate' after kingdom kills four more in two days
Durham Free School: 'Creationism taught at' free school facing closure
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
Ukip would cut billions from Scottish budget to fund English tax cuts
End of the licence fee: BBC to back radical overhaul of how it is funded
Ukraine crisis: Top Chinese diplomat backs Putin and says West should 'abandon zero-sum mentality'
Boris Nemtsov shot dead: Outspoken Putin critic who had expressed fears for his life is killed near the Kremlin
iJobs Money & Business
£8 per hour: Recruitment Genius: This Pension Specialist was established early...
£30 - 35k + Bonus & Benefits: Guru Careers: We are seeking an Executive Assist...
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
Voluntary post, reasonable expenses reimbursed: Reach Volunteering: Would you ...