Nick Jefferies, chief executive of electronic components distributor Acal (ACL) sounded an optimistic note when announcing the group's half-year figures. "The indicators suggest we've reached the bottom," said Mr Jefferies - pointing to improving ECB money supply figures - and added that he was seeing improved buyer confidence. The group's electronics order book is certainly improving and rose 7 per cent in October and November.
Unfortunately that's come too late to boost the half-year figure and underlying operating profit dropped 13 per cent year-on-year to £3.2m. What's more, and despite cost-cutting efforts - underlying operating expenses did fall 8 per cent to £31.1m - the group's underlying operating margin merely remained flat at 3 per cent. Much of the trading pain was felt in the group's electronics division - which generates nearly 80 per cent of revenue. Sales there fell 16 per cent on a constant currency basis to £86.4m, with divisional underlying operating profit having fallen to £4.5m from £5.6m a year earlier. The supply chain business, meanwhile, saw operating profit fall by £0.1m to £0.6m.
Prior to these figures, broker Peel Hunt was expecting full-year adjusted pre-tax profit of £7.5m, giving EPS of 18.6p, but expects to downgrade earnings estimates by around 17 per cent (2012: £6.6m/19.9p).
ACAL (ACL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 157p | MARKET VALUE: | £44.7m | |
| TOUCH: | 150-162p | 12-MONTH HIGH: | 220p | LOW: 140p |
| DIVIDEND YIELD: | 5.1% | PE RATIO: | 40 | |
| NET ASSET VALUE: | 164p* | NET CASH: | £1.9m | |
| Half-year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 134 | 1.90 | 5.30 | 2.50 |
| 2012 | 110 | 0.70 | 1.80 | 2.50 |
| % change | -18 | -63 | -66 | - |
Ex-div: 24 Dec Payment: 18 Jan *Includes intangible assets of £24.9m, or 87p per share | ||||
