Whitecroft falls on warning
The Investment Column
Tuesday 04 June 1996
The continuing deterioration in the commercial construction market meant both the lighting and building products divisions were having to combat lower levels of activity and price deflation, the company warned. But Mr Derbyshire reckons the market has over-reacted. The company managed to shrug off the malaise to produce strong second-half figures, he said, and still ended the year with order books 20 per cent ahead.
Certainly the current year should be boosted by a full-year's contribution from Chalmers & Mitchell, acquired for pounds 4.75m in November. The Glasgow- based company has given Whitecroft market leadership in so-called hazardous lighting - equipment used on oil rigs and in chemical plants, for instance - to add to its strong market positions elsewhere. The lighting division, the second biggest in the commercial market behind TLG, raised profits last year by 6.3 per cent to pounds 6.21m last year.
The Leaderflush doors business, the other area affected by the construction market, also did well to lift profits by a tenth to pounds 13.5m. But, given that in total between a fifth and a quarter of group profits are exposed to construction, the market is probably right to be a little cautious over short-term prospects. Further out, the pounds 7.3m being spent on Edward Hall, which leads the European market in medical cotton fibre, should drive future growth and there may yet be recovery in the construction market.
With profit forecasts downgraded to around pounds 8.5m, the shares stand on a forward price-earnings ratio of around 15. High enough for now.
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Missing Malaysia Airlines plane: 'All passengers' under investigation, police say
Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 2 Family forced to flee home after discovering 'terrifying' nest of spiders in bananas
- 3 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 4 Russell Crowe's Noah banned in three Arab countries before worldwide premiere
- 5 Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...