Belfast-based scientific camera specialist Andor Technology (AND) found trading particularly difficult in 2012, as sales in major US and European markets came under pressure and the shortfall was only partly offset by strong growth in emerging markets. A profit warning in June wiped 40 per cent off the company's market value. However, with cash on the balance sheet, and a maiden dividend declared, it's worth holding on for an improvement in its key markets.
The problem for Andor is that many of its sales originate, either directly or indirectly, from publicly-funded research institutions with most of the spending related to capital investment budgets. Chief executive Conor Walsh said the end of stimulus spending in the US was behind an 11 per cent fall in revenues in the region to £20.3m. "It is pretty much the same in Europe. With stimulus coming to an end, we are seeing lengthening sales cycles," Mr Walsh added. European sales were consequently down 3 per cent to £21.8m due to lower demand for microscopy instruments. Taken together, this had an adverse effect on the order book, which fell by £2.5m to £11.3m, although this has apparently improved since the year-end. One source of optimism is that revenues from the Asia Pacific bucked the trend and soared a third to £16.1m, buoyed by a large one-off equipment order to China.
Broker Investec forecasts pre-tax profits of £10.9m and EPS of 26.2p (from £10m and 26.8p in 2012).
ANDOR TECHNOLOGY (AND) | ||||
---|---|---|---|---|
ORD PRICE: | 391p | MARKET VALUE: | £140m | |
TOUCH: | 382-400p | 12-MONTH HIGH: | 605p | LOW: 304p |
DIVIDEND YIELD: | 0.5% | PE RATIO: | 16 | |
NET ASSET VALUE: | 126p* | NET CASH: | £17.1m |
Year to 30 Sep | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2008 | 24.7 | 1.51 | 4.2 | nil |
2009 | 33.1 | 4.61 | 14.4 | nil |
2010 | 42.7 | 5.81 | 15.7 | nil |
2011 | 57.3 | 8.74 | 21.6 | nil |
2012 | 58.3 | 8.93 | 24.5 | 2.0 |
% change | +2 | +2 | +13 | - |
Ex-div: 30 Jan Payment: 28 Feb *Includes intangible assets of £15.7m, or 44p a share |