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 Is this bridge haunted by the ghost of nu rave?
- 2 The West has it totally wrong on Lee Kuan Yew
- 3 The day I starred in Only Fools and Horses
- 4 Scientists have discovered a simple way to cook rice that dramatically cuts the calories
- 5 Zayn Malik quits One Direction: Hundreds of workers request compassionate leave following band member's exit
Is this bridge haunted by the ghost of nu rave?
Saudi Arabia says it won't rule out building nuclear weapons
Germanwings plane crash: Andreas Lubitz 'had eyesight problems' and woke from nightmares 'screaming we’re going down'
The battle for the Middle East's future begins in Yemen as Saudi Arabia jumps into the abyss
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
JK Rowling responds to fan tweeting she 'can't see' Dumbledore being gay
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
Revealed: Putin's army of pro-Kremlin bloggers
The West has it totally wrong on Lee Kuan Yew
iJobs Money & Business
Negotiable: Recruitment Genius: To provide a prompt, friendly and efficient se...
Negotiable: Recruitment Genius: You will be the first point of contact for all...
£18000 - £24000 per annum + benefits: Ashdown Group: HR, Payroll & Benefits Of...
£35000 - £38000 per annum + benefits : Ashdown Group: A highly successful, int...