FW Thorpe's (TFW) shift towards light emitting diode (LED) technology helped the group put in a robust performance during the first half of the year. Chairman Andrew Thorpe said the rising popularity of LEDs, due to their greater efficiency, has been beneficial for the group's margins. LEDs now account for 58 per cent of revenues, while operating profits increased by 8 per cent to £5.5m.
The group installed a second LED circuit production line at its Thorlux business, thereby doubling board assembly capacity. Thorlux has traditionally been a strong exporter, with offices in Ireland, Australia, Germany and most recently the UAE. Its Irish business was the most profitable during the first half. Mr Thorpe said Germany had been "a tough nut to crack", but that performance had improved in the past six months.
FW Thorpe has sold Sugg Lighting, which specialises in decorative and heritage lighting. Mr Thorpe said the business did not fit with the group's focus on newer technology. Meanwhile, its street and road tunnel lighting business is going from strength to strength. The chairman said the business is not profitable and that "investment has continued on funding growth rather than start-up costs".
FW THORPE (TFW) | ||||
|---|---|---|---|---|
| ORD PRICE: | 152p | MARKET VALUE: | £181m | |
| TOUCH: | 150-153p | 12-MONTH HIGH: | 154p | LOW: 120p |
| DIVIDEND YIELD: | 2.2% | PE RATIO: | 17 | |
| NET ASSET VALUE: | 65p | NET CASH: | £19.3m | |
| Half-year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 29.6 | 5.4 | 3.59 | 1.05 |
| 2014 | 32.6 | 5.8 | 3.92 | 1.10 |
| % change | +10 | +7 | +9 | +5 |
Ex-div:26 Mar Payment:02 Apr | ||||
