The March year-ends are coming thick and fast with UK exporters visible beneficiaries of sterling’s post-referendum contraction - here's a selection of this week's prime cuts.
The swine-meisters at Cranswick (CWK) have produced another strong set of numbers, with an 18 per cent hike in the dividend into the bargain. Many people are asking whether the UK agricultural sector will be hamstrung outside the protective (or more accurately ‘protectionist’) embrace of the EU, but Cranswick reported a 38.4 per cent increase in revenues from exports. It certainly provides food for thought, particularly as that growth was largely driven by demand from the Far East. Readers can get a perspective on the food group’s prospects from the IC’s latest recruit Julia Faurchou by clicking here.
Electrocomponents (ECM) revealed one of the strongest operating performances for the March year-end as the benefits of the group’s self-help initiatives begin to coalesce. The components supplier delivered an ROCE of a 22 per cent, while driving underlying margins, and is on track to deliver £30m in annualised cost savings by next March. Click here to find out if there’s any potential upside in the share price on the back of the current rating.
Alex Newman points out that Scapa Group’s (SCPA) market worth has increased 50-fold since it bottomed out during the financial crisis in March 2009 – a remarkable performance. And the shares were on the rise again, following release of the adhesive products manufacturer's latest full-year figures. Judging by the forward rating, the shares are certainly priced for growth, but just how much headroom is left given the extent of existing market support. Click here to find out our man’s verdict on the specialist manufacturer.
According to Jonas Crosland, “amid all the uncertainty generated by Brexit”, trading at Shaftesbury (SHB) has gone from “from strength to strength”. Sterling weakness and the resultant surge in tourist numbers have done no harm to a REIT whose portfolio is largely given over to leisure-focused property in the heart of London. With the shares trading at an 8 per cent premium to forecast net asset value, does our property analyst think our buy call on the shares is still justified? Click here to read Mr Crosland’s thoughts on the matter.
Emma Powell details a surge in reported profits at Assura (AGR) in the year through to March, as the GP landlord completed two developments during the period, at a cost of £13.8m. Performance metrics were helped along by a £57m revaluation uplift in the portfolio. The trading backdrop deteriorated after the previous coalition government abolished primary care trusts, but Assura’s performance belies wider pressures on the NHS. Click here to find out if Emma thinks our buy call on the shares in still justified.
The privatised utilities are often held out as ‘proxy bonds’ due to their deterministic regulatory framework. This is certainly borne out by the latest figures from Severn Trent (SVT), which highlight the group’s efforts to generate more efficiencies and deliver on outcome delivery incentives. Rewards could be tempered over the 2017/18 accounting year, but how does Severn’s current rating stack up against utility rivals – click here to read Tom Dines’ take on the proxy.
Meanwhile, away from the results deluge, our latest Extraction Podcast has been published in which our natural resources correspondent Alex Newman interviews the management of SDX Energy on their plans. Listen in for free here.
