Shares in CRH (CRH) rose 5 per cent on these full-year results, even though they reported losses for 2013. Albert Manifold, chief executive of the building supplies group, says that last year "represents the trough" in group profitability - which is just as well, given the 88 per cent fall in operating earnings to €100m (£82.6m).
He is confident that an ongoing asset review will greatly improve capital allocation, enabling CRH to target business units with the best prospects for long-term growth. Ironically, it was a €650m impairment linked to the initial findings of the review that blew a hole in profits and earnings last year. But CRH doesn't anticipate further write-downs. So far, management have identified 45 business units that are to be hived off, with two-thirds of the impairment taken on CRH's Europe Products segment ahead of "an orderly disposal process".
The businesses that are being sold off accounted for just 3 per cent of 2013 cash profits (around €44.3m). CRH is still assessing the merits of a group of subsidiaries that represent about a fifth of group net assets, but management expects the bulk of these businesses to remain within the fold.
| CRH (CRH) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,700p | MARKET VALUE: | £12bn | |
| TOUCH: | 1,694-1,700p | 12-MONTH HIGH: | 1,705p | LOW: 1,253p |
| DIVIDEND YIELD: | 3.0% | PE RATIO: | na | |
| NET ASSET VALUE: | 1,318¢* | NET DEBT: | 31% | |
| Year to 31 Dec | Turnover (€bn) | Pre-tax profit (€bn) | Earnings per share (¢) | Dividend per share (¢) |
|---|---|---|---|---|
| 2009 | 17.4 | 0.7 | 88.0 | 62.5 |
| 2010 | 17.2 | 0.5 | 61.3 | 62.5 |
| 2011 | 18.1 | 0.7 | 82.6 | 62.5 |
| 2012 (restated) | 18.1 | 0.6 | 74.6 | 62.5 |
| 2013 | 18.0 | -0.2 | -40.6 | 62.5 |
| % change | - | - | - | - |
Ex-div: 5 Mar Payment: 12 May *Includes intangible assets of €3.9bn, or 533¢ a share £1=€1.21 | ||||
