View from City Road: Key test for McAlpine
Thursday 25 February 1993
Profits have fallen from pounds 23.7m in the year before he joined to pounds 3.6m in the year to October, while earnings have sunk from 31p to 5.1p. Yesterday, the dividend was cut for a second time, from 10.3p to 6.5p, compared with 16.1p in 1989.
To be fair, Mr Odgers' tenure as chief executive coincided with the worst slump in the building industry in living memory. While he clearly believed he was doing enough in his first year - when he wrote pounds 46.4m off the value of the group's assets, made the first dividend cut, and launched a pounds 38.8m rights issue - to ensure that future results would show a smooth upward trend, he reckoned without the continued slump. And he is at least leaving the business in better shape than many of its competitors.
The key test will be where the business goes from here. Like its competitors, it is enjoying a surge of interest from housebuyers, so the division's profits should show a sharp improvement this year. The US is also showing improvement, but the performance of the contracting and minerals division will worsen. Analysts are forecasting pounds 5.8m profits this year - only a marginal improvement on last year, before exceptional redundancy costs - putting the shares, down 8p to 131p yesterday, on a multiple of 18.7. The 6.5 per cent yield is less generous than it looks, as it will be at least two years before the reduced dividend is twice covered. Mr Odgers' replacement will have to be very dynamic to persuade shareholders to buy.
- 2 Disney heiress Abigail disowns her share of family profits in West Bank company
- 3 Israel's propaganda machine is finally starting to misfire
- 5 'Hello mum, this is going to be hard for you to read ...'
Russell Brand accuses FOX News anchor Sean Hannity of terrorism after aggressive Israel-Gaza debate
Sally Farmiloe dead: Howards' Way actress, and former mistress of Jeffrey Archer, dies aged 60
Sabina Altynbekova, the girl branded 'too good looking' for volleyball, says social media obsession with her is a 'bit much'
Disney heiress Abigail disowns her share of family profits in West Bank company
Australian model Robyn Lawley stages naked protest against huge coal mine seven times the size of Sydney Harbour
The secret report that helps Israel hide facts
Woman and two children killed by mob in riots over 'blasphemous' Facebook post in Pakistan
A day in the life of Vladimir Putin: The dictator in his labyrinth
Putin is 'thuggish, dishonest and reckless', says British ambassador to US
Richard Dawkins tweets: 'Date rape is bad, stranger rape is worse'
Boozy, ignorant, intolerant, but very polite – Britain as others see us
- < Previous
- Next >
iJobs Money & Business
£600 - £700 per day + competitive: Orgtel: Senior Investment Accounting Change...
£450 - £650 per day + competitive: Orgtel: My client, a leading bank, is curre...
£350 - £400 per day + competitive: Orgtel: Senior Analyst, ALM Data, Halifax, ...
£500 - £600 per day: Orgtel: Java developer - Banking - London - Up to £600/d...