The strong recovery at European electronic components distributor Acal continues a pace with last year's first-half adjusted operating loss of £1.8m turning into a profit of £2.8m. Much of the improvement came thanks to strong growth in the company's electronics order book which has been translated into much higher sales. Combined with the operational leverage of the business, and benefits from cost cutting, operating profits surged from the £1.1m posted in the second half of last year.
Moreover, Acal remains on target to achieve annualised cost savings of £4.4m as a result of the successful ongoing integration of specialist electronics and photonics distributor BFi Optilas into its core electronics business which provides specialist electronic and laser products. This division saw turnover jump from £39.4m to £96.5m and like-for-like sales rise by a third even without the inclusion of BFi. As a result underlying operating profit margins doubled to 3.6 per cent year-on-year, helped by £1.3m of cost savings.
Reported profits in the period were depressed by £2.9m of exceptional charges, mainly relating to the integration of BFi. Excluding these and subject to revision, Shore Capital is forecasting full-year adjusted pre-tax profits of £3.5m and EPS of 7.9p, rising to £7.4m and 19.6p, respectively, in 2012.
| ORD PRICE: | 240p | MARKET VALUE: | £68m | |
| TOUCH: | 235-245p | 12-MONTH HIGH: | 259p | LOW: 130p |
| DIVIDEND YIELD: | 2.9% | PE RATIO: | NA | |
| NET ASSET VALUE: | 173p* | NET CASH: | £10.1m | |
| 2009 | 71.5 | -2.7 | -10.5 | 2.33 |
| 2010 | 127.3 | -0.4 | -0.7 | 2.33 |
| % change | +78 | - | - | - |
Ex-div: 29 Dec Payment: 21 Jan *Includes intangible assets of £16.3m, or 57p a share |
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