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.
- 3 Oil tanker with $100 million cargo goes missing off Texas coast
- 4 George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
- 5 Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Keira Knightley topless: Usually conservative actress does own take on #Freethenipple campaign for Interview Magazine
YouTube video posted by Isis militants shows 'execution of 250 Syrian soldiers'
Oil tanker with $100 million cargo goes missing off Texas coast
George Galloway left with severe bruising after attack in Notting Hill by man 'shouting about the Holocaust'
Brother and sister, Christopher Buckner and Timothy Savoy, arrested for 'committing incest after watching 'The Notebook''
Robin Williams Emmys tribute led by Billy Crystal criticised for including 'racist' joke about Muslim woman
The Rotherham child abuse scandal is a tale of apologists, misogyny and double standards
Scottish independence TV debate: Pumped-up Alex Salmond bounces back in bruising second round against Alistair Darling
Do you realise just how foolish the UK looks?
Ukip Douglas Carswell defection: Tory MP jumps ship to join Nigel Farage
When elitism grips the top of British society to this extent, there is only one answer: abolish private schools
- < Previous
- Next >
iJobs Money & Business
£50000 - £80000 per annum + benefits+bonus+package: Harrington Starr: Data Sci...
£450 - £500 per day: Orgtel: SAS Business Analyst, London, Banking, Credit Ris...
£32000 - £38000 Per Annum Bonus, Life Insurance + Other Benefits: Clearwater P...
£200 - £250 per day + competitive: Orgtel: KYC Analyst, Key Banking Client, Bi...