HellermannTyton (HTY) ends its first year as a listed company later this month, and the maker of cable ties and galvanised steel conduits has every reason to celebrate. True, it's not sexy, but the share price has rocketed by two-thirds, and a recent refinancing at much lower rates will cut the annual interest charges by €8m (£6.6m), which partly explains earnings upgrades following full-year results.
A better than expected 15.4 per cent margin meant adjusted operating profit, which excludes IPO costs and the revaluation of intra-group loans, jumped 12 per cent on a constant currency basis to €83m (£68m). Friendly broker JPMorgan Cazenove now expects €88m in 2014, giving adjusted EPS of 26.9¢, up 5 per cent on previous forecasts and 18 per cent higher than last year's 22.8¢. It predicts growth of 11 per cent in 2015 to 29.8¢, too. A 17 per cent surge in automotive sales to €255m, driven mostly by the US and China, is generating much of that. Organic revenue growth in Asia topped 17 per cent, and nudged 13 per cent in the Americas. Even in Europe, where the economy limped through 2013, HellermannTyton's sales rose 8 per cent to £283m.
HELLERMANNTYTON (HTY) | ||||
|---|---|---|---|---|
| ORD PRICE: | 320p | MARKET VALUE: | £689m | |
| TOUCH: | 320-321p | 12-MONTH HIGH: | 333p | LOW: 194p |
| DIVIDEND YIELD: | 1.3% | PE RATIO: | 37 | |
| NET ASSET VALUE | 158¢* | NET DEBT: | 44% | |
| Year to 31 Dec | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2012 | 514 | 50.3 | 15.6 | na |
| 2013 | 538 | 35.1 | 10.6 | 5.2 |
| % change | +5 | -30 | -32 | - |
Ex-div: 12 Mar Payment: 30 Apr *Includes intangible assets of €240m, or 111¢ a share £1=€1.22 | ||||
