Lupus Capital (LUP) designs, makes and distributes all the bits and pieces that are fitted to doors and windows; it makes other specialist goods, too - such as static control devices on photo copiers and sunroof seals for cars. Its business is also split fairly evenly down the middle between two regions: the US, where business is looking up, and the UK and Europe, where trading is still tough.
- Big exposure to improving US housing sector
- Lossmaking composite doors division sold
- Profits already reviving
- Dividend reinstated
- Demand still weak in the UK
- More closure costs to come
Growth in the US has been enough to offset the gloomy picture elsewhere, not least because of tangible signs that US housebuilding activity has at least bottomed out. Permits for home construction last November rose to their highest level in more than four years. True, the improvement is from a low base, but in 2012 housebuilding is expected to add to US national income for the first time since 2005. Demand has also been boosted by relatively mild weather, and Lupus' underlying US operating profits jumped 22 per cent in the first half of 2012 to $9.3m (£5.7m).