Pumps and motor manufacturer Hayward Tyler (HAYT) is in great shape. Balance sheet ratios have been restored to health, new banking facilities agreed, and the shareholder base is now an impressive list of blue-chip names, following the exit of a major Indian shareholder earlier this year.
That puts the group in a strong position to capitalise on buoyant demand in its end markets of power generation, nuclear and oil and gas. Order intake of £46m was up 16 per cent on a pro-rata basis. The power market represented just over half of that, and prospects here are well underpinned by a bulging pipeline of new power plants in China and India.
Nuclear is another hot spot. Management tells us there has been a "renaissance" in nuclear power, with world nuclear capacity expected to increase by 55 per cent by 2035. Hayward looks well-placed to benefit, with a track record stretching back almost 60 years and over 1,000 pumps in active service.
All of which has paved the way for a return to the dividend list and the adoption of a "progressive" dividend policy. Broker finnCap expects a 1.5p dividend this year, based on earnings per share of 6.7p (6.5p in 2013-14).
HAYWARD TYLER (HAYT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 82p | MARKET VALUE: | £37.1m | |
| TOUCH: | 80p-83p | 12-MONTH HIGH: | 91p | LOW: 26p |
| DIVIDEND YIELD: | 1.5% | PE RATIO: | 16 | |
| NET ASSET VALUE: | 25p* | NET DEBT: | 74% | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 39 | -2.1 | -12.3 | nil |
| 2011 | 32 | -3.1 | -12.9 | nil |
| 2012 | 33 | 1.3 | 1.2 | nil |
| Year to 31 Mar | ||||
| 2013† | 40 | 1.5 | 0.3 | nil |
| 2014 | 43 | 3.8 | 5.0 | 1.25 |
| % change | +7 | +155 | +1,631 | - |
Ex-div: 13 Aug Payment: 29 Aug *Includes intangible assets of £3m, or 7p a share †15-month period | ||||
