Surging demand for power and data drove a 42 per cent rise in first-half operating profits for HellermannTyton (HTY), which manufacturers cable components such as ties and casings. The FTSE 250 engineer connects, protects and organises the increasing amounts of cabling used in cars, machinery, data centres and networks, and has also benefited from higher safety standards and the substitution of metal with lightweight plastic.
These trends supercharged its automotive segment, where sales grew a fifth to €147m (£118m), thanks in particular to strong demand from Chinese car companies and truck and bulldozer manufacturers in Japan and the USA. That helped the group - which was sold by Spirent (SPT) in 2006 and listed in March last year - deliver a 20 per cent rise in constant-currency sales in Asia and double-digit revenue growth in its other regions. It also boosted sales at both its electrical and data communications divisions by over 10 per cent.
Hellermann’s prospects look strong, with order intake up 14 per cent and a positive book-to-bill ratio across all of its regions. Gearing may be a concern, however: net debt rose a fifth to €177m last half, and the company has now drawn 87 per cent of its €230m credit facility.
Broker JPMorgan Cazenove nudged up its pre-tax profit and EPS forecasts and now expects pre-tax profits of €84.4m, giving EPS of 27.6¢.
| HELLERMANNTYTON (HYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 307p | MARKET VALUE: | £661m | |
| TOUCH: | 306-309p | 12-MONTH HIGH: | 336p | LOW: 253p |
| DIVIDEND YIELD: | 1.8% | PE RATIO: | 25 | |
| NET ASSET VALUE: | 167¢* | NET DEBT: | 49% | |
| Half-year to 29 Jun | Turnover (€m) | Pre-tax profit (€m) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2013 | 268 | 21.8 | 6.5 | 1.32 |
| 2014 | 292 | 34.6 | 11.3 | 2.82 |
| % change | +9 | +59 | +73 | +114 |
Ex-div: 3 Sep Payment: 15 Oct £1 = €1.25 *Includes intangible assets of €242m, or 112¢ a share | ||||
