Specialty chemicals group Croda (CRDA) has capped six successive quarters of underlying sales growth and an 8.8 per cent improvement in annual adjusted pre-tax profits by announcing a special dividend worth 100p a share. That was despite challenging market conditions in 2015, a trend which will continue into the current financial year.
Last year the group recorded positive sales growth across all four of its regional geographies and across all four divisions thanks to a particular focus on new and higher margin products. The personal care and life sciences divisions reported strong sales and profit growth, while the performance technologies segment managed to record a 1.6 per cent improvement in underlying sales. That said, a disappointing showing from the geo technologies business - due in large part to the depressed oil price - left adjusted operating profits there down 11 per cent. Encouragingly, the industrial chemicals division staged a recovery after a difficult 2014; underlying sales grew 3.4 per cent, while improved pricing left adjusted operating profits up more than 150 per cent at £6.7m.
Analysts at N+1 Singer expect pre-tax profit of £264m this year, giving EPS of 138p compared with £255m and 135p in 2015.
| CRODA INTERNATIONAL (CRDA) | ||||
|---|---|---|---|---|
| ORD PRICE: | 2,974p | MARKET VALUE: | £4.04bn | |
| TOUCH: | 2,972-2,976p | 12-MONTH HIGH: | 3,150p | LOW: 2,632p |
| DIVIDEND YIELD: | 2.3%* | PE RATIO: | 22 | |
| NET ASSET VALUE: | 442p** | NET DEBT: | 43% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 1.03 | 238 | 120 | 55.0 |
| 2012 | 1.05 | 238 | 122 | 59.5 |
| 2013 | 1.08 | 250 | 131 | 64.5 |
| 2014 | 1.05 | 229 | 122 | 65.5 |
| 2015 | 1.08 | 252 | 133 | 69.0 |
| % change | +3 | +10 | +9 | +5 |
Ex-div: 5 May Payment: 2 Jun *Does not include 2015 special dividend worth 100p a share **Includes intangible assets of £338m, or 249p a share | ||||
