These solid full-year figures from specialist materials company Fiberweb (FWEB) suggest that its turnaround programme is working. The recovery in the North American property market, in particular, generated more demand for house and landscape materials and was key to the 39 per cent year-on-year increase in underlying operating profit to £15m.
Although progress was offset somewhat by pension scheme issues - the £27.9m pension deficit it reported in June related to two closed US schemes and that required urgent attention. This involved a one-off payment of £15.5m, from the proceeds of the disposal of its hygiene business, in addition to its usual contribution - which helped bring the deficit down to £6.5m at the year-end. That action, however, probably prevented a special dividend, which had looked like a serious option after the hygiene business disposal. Meanwhile, efforts to reduce working capital helped generate cash inflow of £10.1m, before the pension contribution. Still, chief executive Daniel Dayan hasn't closed the door on a return of capital this year - he reckons the likelihood should grow if no suitable bolt-on acquisitions are found.
Peel Hunt expects adjusted pre-tax profit for 2013 of £17.5m, giving EPS of 6.5p (from £13.6m and 6.5p in 2012).
FIBERWEB (FWEB) | ||||
|---|---|---|---|---|
| ORD PRICE: | 78p | MARKET VALUE: | £135m | |
| TOUCH: | 78-79p | 12-MONTH HIGH: | 80p | LOW: 56p |
| DIVIDEND YIELD: | 4.1% | PE RATIO: | 35 | |
| NET ASSET VALUE: | 100p* | NET CASH: | £14.5m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 513 | -25.2 | -18.0 | 4.20 |
| 2009 | 454 | -6.10 | 0.40 | 4.20 |
| 2010 | 269 | 2.50 | 1.80 | 4.20 |
| 2011 | 298 | -7.20 | -1.80 | 3.00 |
| 2012 | 300 | 6.50 | 2.20 | 3.20 |
| % change | +1 | - | - | +7 |
Ex-div: 24 Apr Payment: 24 May *Includes intangible assets of £45m, or 26p a share | ||||
