Alent (ALNT), Cookson’s former performance-materials business, had a better than expected second half, winning market share and outperforming end markets. Underlying operating profit still fell 3 per cent to £94.1m, but a likely upturn in European car sales should drive demand for its coatings in 2014. More smartphone and tablet launches would be a tailwind, too - though predicting electronics industry trends is difficult, which perhaps explains management’s conservative outlook.
Much will depend on consumer demand. Last year’s rapid decline in personal-computer sales will not be repeated this year, guesses chief executive Steve Corbett. That spells good news for Alent’s higher-margin assembly-materials division, which supplies solder pastes used in printed circuit boards. A faster-growing global economy will help, too. Expect more product launches than last year, especially in smartphones and tablets, says Mr Corbett. And a better year for the smaller surface-chemistries business looks likely. Profits in the unit fell 10 per cent at constant currencies, driven by a sharp drop in sales of its high-margin copper damascene additive. Strip that out and margins were unchanged.
Deutsche Bank expects adjusted pre-tax profit of £93m in 2014, giving adjusted EPS of 25.7p (from £88m and 24.1p in 2013).
ALENT (ALNT) | ||||
---|---|---|---|---|
ORD PRICE: | 321p | MARKET VALUE: | £ 894m | |
TOUCH: | 319-322p | 12-MONTH HIGH: | 414p | LOW: 298p |
DIVIDEND YIELD: | 2.7% | PE RATIO: | 15 | |
NET ASSET VALUE | 112p* | NET DEBT: | 31% |
Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2011 | 814 | 94.4 | 27.0 | NA |
2012 | 714 | 73.2 | 16.2 | 8.25 |
2013 | 685 | 77.7 | 22.1 | 8.6 |
% change | -4 | +6 | +36 | +4 |
Ex-div: 14 May Payment: 19 Jun *Includes intangible assets of £289m, or 104p per share |